Market share of top 2 OEMs in E2W segment grew by 12% in CY2023

India has shown ~5% E2W adoption in overall 2W segment in CY2023. The segment has shown a 35% year-on-year sales growth in the country.  The overall E2W market is fragmented with more than 150 players in the category. However, the top 2 E2W players captured more than 50% of the market share in CY2023.

Fig 1: Market share analysis of E2W OEM’s in India

Source: Vahan Dashboard, Telangana Dashboard, JMK Research

In CY2023, the top 2 E2W OEMs- Ola Electric and TVS Motors saw an increase of ~12% in market share, while Hero Electric and Okinawa saw a ~12% fall in market share. 

  • Ola Electric has remained the market leader in the E2W segment for the past 2 years and has shown a year-on-year growth of ~141% in CY2023. The company entered the market in late 2021, and since then, it has disrupted the segment. The company has targeted ICE customers with five electric scooters and expanded its distribution network across India, which is the reason behind its phenomenal growth.
  • TVS Motors has seen a year-on-year growth of ~238% in the E2W category. The market share has increased by ~12% because of the gradual expansion of its iQube retail network to over 140 cities (As on January 1, 2024) across India and continuous efforts to improve the ease of charging quotient for iQube owners by tying up with various charging partners.
  • A blow to Hero Electric and Okinawa sales in CY2023 is due to the government ceasing subsidies in August 2023 for both the companies due to violation of subsidy norms. The two businesses could not meet the 50% localisation requirement for their scooters, leading to slash in subsidies by the Ministry of Heavy Industries.

Overall, the E2W segment has flourished with a year-on-year growth of ~36% in CY2023.  The domination from the top players in the category is even visible in the starting months of CY2024. Last month, i.e. in Feb 2024, Ola took more than 40% share for the first time, while TVS took ~18% of the market share. Similar to the ICE 2W category, even in the E2W industry, it is anticipated that only a handful of major players will dominate the market.