The Indian electric bike market is experiencing significant growth, with sales reaching 1.2 million units this year, a 19% increase from the previous year. Despite this growth, the market is expected to remain behind China, which is projected to sell around 70 million units by the same year. Indian manufacturers, such as Ola and Ather, are facing challenges including the removal of state subsidies, customer skepticism, and supply chain pressures. However, consumer demand is showing resilience, with buyers attracted to electric bikes due to their long-term cost savings.
The market is highly competitive, with price being a key factor, and affordability is at the heart of the contest. Electric vehicle (EV) models are typically more expensive than traditional petrol scooters, but consumers are willing to pay more for the long-term benefits. Agency CareEdge notes that EV buyers are drawn to the electric bikes because they are cheaper over the long term.
The industry is also facing geopolitical challenges, with China imposing new restrictions on rare-earth materials, which are essential for electric vehicle manufacturing. Sudarshan Venu, managing director of TVS Motor Company, emphasizes the need to build a resilient supply chain to mitigate the impact of these changes. The company is exploring alternative suppliers to ensure a stable supply chain.
In related news, India is making significant progress in creating renewable energy infrastructure, with a striking growth in wind and solar power. The country’s electricity generated by fossil fuels dropped in 2025, with coal and gas falling by 3% and 34%, respectively. International Energy Agency Director Fatih Birol praises India’s progress as “very impressive”, driven by government policies such as support for rooftop solar and quicker permits for hydropower projects.
Meanwhile, the UK Prime Minister, Keir Starmer, is in India for trade negotiations, and has stated that the UK will not relax trade rules for India. While there are opportunities to improve trade and cultural ties, Starmer emphasizes that the focus is on business-to-business engagement, investment, and jobs, rather than visa routes for Indian workers or students. The visit is also expected to discuss a potential fighter engine deal between the two countries. Overall, India’s electric bike market and renewable energy sector are experiencing significant growth, driven by consumer demand and government policies, despite challenges and geopolitical uncertainties.