Demand for electric two-wheelers is booming in APAC
There is a huge demand for electric two-wheelers in the Asia Pacific (APAC) region. People in the APAC region are giving priority to electric two-wheelers over electric cars. Electric two-wheelers are extremely popular in India and China.
The affordable price structure of electric two-wheelers are attracting customers from the APAC region. The advancement and innovations in battery technology is driving the market for electric scooters.
Reportedly, the Asia-Pacific electric scooter market is expected to reach USD $2,984.24 billion by 2027. Last year, APAC electric scooter market size was estimated to be around USD $24.85 billion.
Demand for electric two-wheelers
The electric two wheeler market in China has been increasing rapidly since 2005. Since electric scooters run on electricity, they are cheaper alternatives for middle class people. The price of electricity does not fluctuate like petrol, which is required for normal scooters.
Electric two-wheelers also help in reducing vehicle pollution. Electric two-wheelers are also low maintenance and easy to use. People in the APAC region think that electric two-wheelers can be an excellent investment for the future.
In India, Indonesia, the Philippines and Vietnam, there is a huge popularity for electric two wheelers. They give importance to electric two wheeler over petrol two-wheeler. These electric scooters do not require expensive petrol charges.
The Indian government offers incentives to people to encourage them to buy an environmentally friendly electric vehicle. The Indian government has also reduced the GST on Lithium-ion Battery from 28% to 18%. Electric two wheelers get power from Lithium-ion batteries or Lead- Acid batteries.
It is also easy to charge electric two-wheelers. The batteries of the electric scooters usually come with a 3-year warranty.
Most countries also prefer electric scooters because they are environmentally-friendly. Electric motors emit 50% less carbon dioxide than regular petrol two-wheelers.
Asian countries decarbonize and limit air pollution by using electric two wheelers. Asian countries account for over 90% of all global two-wheeler sales. China, India, and Southeast Asia are the largest markets of electric two wheelers.
According to IDTechEx experts, Vietnam and India will take up larger market shares of electric two-wheelers in the coming years. The two-wheeler is the most preferred means of transport for India.
Indonesia, Thailand, the Philippines, and Vietnam have also expressed interest in electric scooters. The electric two-wheeler market is thriving in Indonesia, Thailand, the Philippines, and Vietnam.