India's Electric Scooters and E-Rickshaws

Why India's EV transition is being led by two- and three-wheelers rather than cars, the role of subsidies, and the challenges of batteries and quality.

In many countries, the electric vehicle story is about cars. In India, it’s led by two-wheelers and three-wheelers.

E-rickshaws

Battery-powered e-rickshaws spread rapidly across north and east Indian towns from around 2010, often before formal regulation. They offer cheap, quiet transport and livelihoods for drivers. Electric three-wheelers now make up a large share of three-wheeler sales.

Electric scooters

Electric scooter sales grew rapidly in the 2020s, with companies like Ola Electric, Ather, TVS and Bajaj. Advantages:

Low running costs: charging costs far less than petrol per kilometre.
Short city trips suit battery range.
Home charging for many users.

Subsidies

FAME schemes (from 2015) subsidised EV purchases.
PM E-DRIVE (2024) continued support.
PLI schemes for EV and battery manufacturing.
Lower GST on EVs (5 percent).

Challenges

Battery costs and imports, often from China.
Quality and safety: several electric scooter fires in 2022 raised concerns, leading to stricter battery standards.
Service networks and after-sales support; some companies faced customer complaints.
Charging infrastructure for those without home parking.

Economics

For high-usage vehicles like delivery scooters and rickshaws, the total cost of ownership of EVs is often lower than petrol, which drives adoption.

The delivery rider

A food delivery rider switches to an electric scooter. Although it cost more upfront, he saves several thousand rupees a month on fuel, recovering the extra cost within a year or two.

Thinking India's EV transition depends on electric cars

Two- and three-wheelers lead India's EV adoption, especially for high-usage commercial use.

Key takeaways

India's EV transition is led by two- and three-wheelers.
E-rickshaws spread rapidly and provide livelihoods.
FAME, PM E-DRIVE, PLI and low GST support EVs.
Battery costs, safety and service are key challenges.