Smart Scooters in India

Start-Ups Hope to Disrupt the Electric Two-Wheeler Market


The Indian government has been pushing for a fully electric scooter fleet by 2030, as it aims to address alarming pollution levels and cut the national fuel bill. It's an ambitious goal considering that India was ranked 177 among 180 countries in the World Economic Forum's Environmental Performance Index. The country imports about 80 percent of its energy supply, and is struggling to counter the environmental fallout of surging car and scooter ownership.

One obvious place for the country to start is by shifting the population away from petrol-based scooters to electric ones. India is the largest two-wheeler market globally, with over 17 million petrol-driven scooters and motorcycles sold in 2017, and more than 150 million on the road. This ever-expanding fleet is clogging city roads, causing some of the worst traffic and pollution levels in the world.

Electric vehicles have so far only played a tiny role in sales of two-wheelers. According to data from the Automotive Component Manufacturers Association of India, only 50,000 electric two-wheelers were sold in the country in the fiscal year ended March 2017, although this figure is more than double that of 2016.

During the first half of 2018, several start-ups have emerged to take up the challenge and have launched electric two-wheelers.

Last week, Ather Energy, a start-up from Bengaluru, began taking pre-orders for its new flagship electric scooter, hoping to introduce a mass-market vehicle within two years.

Ather has raised $43 million in funding from some of India's best-known investors, including Hero Motor, the nation's largest manufacturer of two-wheelers. The company's ambitious plan is to put 2,000 of its scooters on the road through August 2018, and up to 100,000 over the next couple of years. Ather also hopes to expand to nearby Chennai and Pune during that period. The vehicles are priced at about $1,600, a sum that includes a subsidy of 22,000 rupees (about $320) under the government's Fame scheme to help spur adoption of electric vehicles.

In February 2018, at the India Auto Expo in New Delhi, Twenty Two Motors, a newcomer based near New Delhi, showed off its Flow e-scooter, with a price tag of almost 75,000 rupees (about $1,100). The business is targeting the country's tech-savvy customers with its artificial intelligence-enabled, cloud-connected vehicle. This also features GPRS, GPS and other sensors that allows a driver to use a mobile app to start and stop the motor, and remotely diagnose any problems. By comparison, Honda Motor's popular gasoline-powered Activa scooter sells for around 60,000 rupees (about $900).

Smart scooters are an intriguing concept for India, but there are significant infrastructure challenges to support a sizeable fleet of electric two-wheelers. The Indian government will need a clear policy road map to enable this goal, building out a charging network and agreeing on standards.

Sign up to our free Daily Insight service here.

This entry was posted on June 12th, 2018 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed or you can leave a response.

Posted By Raghu Gopal On June 12th, 2018


Comments
(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
Completion of the specification for standalone #5G is a major milestone, but the mobile industry must temper expect… https://t.co/CcdtAIY4yx
Follow CCS Insight
Shaun Collins
RT @mobileworldlive: #China regulator #MIIT pledges timely #5G licence issue @Huawei @CCSInsight https://t.co/LI62PeOQaf
Follow Shaun
Ben Wood
Full @EE smart home portfolio now officially launched. Products from Apple, Google, Hive, Honeywell, Logitech, Nest… https://t.co/RVM3zt0Rvr
Follow Ben
Martin Garner
@Telefonica new Movistar Home, a sort-of Echo Look competitor. "Re-defining the home phone". Neat integration with… https://t.co/NJclCfJbNA
Follow Martin
Marina Koytcheva
@NetgemUK Many thanks for the invitation! Unfortunately I won't be able to join, but wish you good luck at the launch!
Follow Marina
Nicholas McQuire
@jlesaicherre @myrstad Correct. It’s mainly the consumer app used for work purposes.
Follow Nicholas
Paolo Pescatore
@bassilelkadi @Qualcomm @QCTonyOC @Bernard_P @ConorCampbell How about an analyst family party for the #WorldCup final
Follow Paolo
Angela Ashenden
@salesforce buyers may still come from sales/Service LOB, but increasing shift to seeing sales / Service Cloud as t… https://t.co/o1Aum8tNS4
Follow Angela
Kester Mann
RT @CCSInsight: Completion of the specification for standalone #5G is a major milestone, but the mobile industry must temper expectations:…
Follow Kester
George Jijiashvili
@anshelsag Did you leave the Master AI on or off?
Follow George
Laura Simeonova
RT @benwood: P20 devices testament to Huawei's ambition in smartphone market. Consistently improving design, capabilities and appeal of its…
Follow Laura
Katie Taylor
A really interesting look at the inefficiencies of the human body https://t.co/RqdDBzDVQ7
Follow Katie

Recent Blog Posts

Blog Post
5G Can Stand Alone Standalone 5G Specifications Approved by 3GPP Not long ago,... Read more
Blog Post
Microsoft Targets Amazon's Sweet Spot Its New Technology Could Allow Retailers to Build Checkout-F... Read more
Blog Post
Robots to the Rescue Airbus Employs Robots to Speed Up Its Production Rate For y... Read more
More blog

Latest Company News

Blog Post
Angela Ashenden Joins CCS Insight to Lead Business Collaboration Research Enterprise Research Coverage Continues to Expand ... Read more
More news