It will be a Windfall for EV Manufacturers, As Delhi Govt. Plans Ban on Petrol & Diesel 2 Wheelers

The electric two-wheeler (E2W) market is experiencing significant growth driven by strong confluence of government initiatives and the pinch of rising fuel prices. The market is further fueled by increasing consumer concern for the environment, as they seek sustainable transportation option and adopt green mobility practices. 

As a result, a staggering 1.15 million electric two-wheelers were sold in 2024, a 33% increase over the 860,000 units sold in 2023. Due to this expansion, the electric two-wheeler segment now accounts for 57% of India's overall EV market. Ola Electric is leading this drive and has established itself as the leading manufacturer in the Indian e2W industry. Its market share increased drastically from 21% in 2023 to 35% in 2024. 

Other established firms like Bajaj, TVS and Ather Energy have also shown notable growth at the same time, increasing their market shares. 

Delhi and Northern India - A Lucrative Space for E2W Manufacturers? 

A substantial boost for E2W manufacturers is anticipated with Delhi's upcoming EV Policy 2.0. The government is planning a ban on new registrations of petrol and diesel run two wheelers to ensure gradual shift towards sustainable and greener environs. If the move is implemented, after Aug 2026, the only option will be EV for motorcycle and scooter buyers in NCR. This will encourage a significant growth in the production of electric two-wheelers (E2Ws) and by 2027, 95% of vehicles might be registered as electric. 

The initial burden for potential buyers will be reduced by a substantial financial incentive under the policy. This amount starts from ₹30,000 for each electric two-wheeler and might reach ₹36,000 for female buyers. This shift is further supported by the extra incentive offered for the disposal of older and environmentally harmful two-wheelers. 

Hence, the demand for E2Ws will increase as the total cost of ownership becomes more appealing for consumers. Overall, the E2W landscape will experience an exponential surge and will create a lucrative market for electric vehicle manufacturers. 

Meanwhile a strong focus on building charging infrastructure, constructing factories and developing effective supply networks across Delhi is crucial. This policy is determined to establish a city-wide network of charging stations. This will further speed up E2W adoption, creating massive business opportunities in the charging station servicing sector as well. 

The policy also aims to develop a workforce with the necessary skills for the EV industry. The establishment of training facilities will provide a talent pool that will be readily available for E2W manufacturers to capitalize on. The EV Policy 2.0 targets the creation of up to 20,000 new jobs. 

Key EV Manufacturing & Innovation Hubs in North India

The region Jewar situated around Noida's mega international airport is rapidly establishing itself as a major manufacturing hub for EVs. This expansion is demonstrated by a 100-acre EV manufacturing cluster located alongside the Yamuna Expressway. The UP government's proactive approach of providing a wide range of incentives to EV manufacturers further enhances this strategic development. This also includes business parks designed to increase the production of EVs, batteries and e-rickshaws. 

Jewar's strategic position can also provide EV manufacturers a clear edge in reaching the vast market of UP alongside Haryana & NCR. Close to 277,000 EVs were sold in Uttar Pradesh in 2023, which shows the state’s potential to develop as a prolific EV market in future. 

The region's attraction as a production center is further enhanced by the construction of the Multi-Mode Logistics Hub (MMH). In addition to the dedicated EV cluster, this 87-acre hub will serve enterprises throughout the NCR and other regions of North India. It includes a 30-acre airport terminal and 57 acres of storage zones

Palwal in Haryana is also touted as a potential EV production destination. Delhi NCR is attributed as India's leading EV sales market and Palwal’s accessibility to the region gives it an edge to transform into a lucrative manufacturing destination. Establishing manufacturing operations near Delhi NCR gives companies access to an abundance of talented individuals. This may include well-known media outlets, marketing firms, powerful policy think tanks, and seasoned consultancies. Notably, these services are crucial for an EV company to thrive and become widely successful. 

How can The India Watch Help?

The India Watch provides deep market research, latest data and strategic insights to assist EV manufacturers and associated organizations such as battery manufacturers and charging infra provider. 

Through our custom-made research and data solutions, we help you identify and launch the most profitable ventures to capitalize on. While curated data and insights are our key expertise, we are also adept in going a step further and offer comprehensive techno economic feasibilities. 

Our range of services can include the following

Ø Identifying Lucrative EV Business Opportunities

Ø Viability and Feasibility Assessment for EV Manufacturers

Ø Market Size Estimation & Total Addressable Market (TAM) calculations

Ø Competitive and Ecosystem Analysis

Ø Growth Strategy Roadmap & Positioning Plans 

Ø Location Assessment

Ø Marketing and Sales Channel Strategy for EV Products

Ø In-depth Regulatory & Policy Insights for the EV Sector

Ø Inputs on Key Success Factors, Growth Enablers, Risks & Challenges

Ø Detailed techno economic feasibility reports

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