Electric two-wheeler demand charges ahead as factories play catch-up

Manufacturers line up 3 million units of new capacity to close supply gap

Electric two-wheeler (e2W) companies are furiously expanding capacity and setting up new plants as demand for their vehicles has far outstripped supply, leading to growing waiting lists. As a result, companies such as Ather Energy, Bajaj Auto, TVS Motor Company, River Mobility, and Ultraviolette, as well as new entrant VinFast, which has also joined the race, are expected to add over 3 million units of capacity annually in phases, based on industry estimates. 

Ather Energy Chief Executive Officer Tarun Mehta sums up the scenario: “The underlying demand for e2Ws is now around 240,000 to 250,000 a month. So there is a large gap between demand and supply.” 

In June, for instance, total e2W registrations until June 30 stood at 179,075, creating a gap of over 60,000-70,000 vehicles in the month compared with the total underlying demand. 

In the first three months of this financial year (FY27), registrations of e2Ws have already crossed the half-a-million milestone, growing by a staggering 57 per cent over last year to 500,000 vehicles. 

As a result, Ather’s waiting list for electric scooters is now as high as 60 days. According to TVS dealers in Delhi, the waiting period for the iQube can be as long as 45 days from the date of booking. 

Ather’s Mehta says the company has already crossed 90 per cent of its capacity at the Hosur plant and will have to find ways to operate above 100 per cent in the coming weeks. Work is in progress at its new plant in Sambhajinagar, Maharashtra, which will initially have a capacity of 500,000 units annually, or around 42,000 units per month. The plant is expected to begin commercial production towards the end of the year, says Mehta. Its final capacity is planned to expand to 1 million units annually. 

The story is similar at Bajaj Auto. Rakesh Sharma, joint managing director at the company, says, “Indeed, we need capacity expansion in e2Ws. We are currently falling short, and we expect the market to grow; hence the need.” Bajaj Auto, for instance, registered over 40,000 e2Ws in June. At that run rate, the company will have very little capacity left at its Akurdi plant, which has an annual capacity of 500,000 units. The company has now pushed capacity to 50,000 units a month. That is why the company is scouting for a location for a proposed new e2W and three-wheeler plant and this time is looking outside Maharashtra, with Tamil Nadu and Karnataka being considered. 

Companies like TVS are in an even tighter situation, with their monthly registration run rate this financial year rising from 40,000 in April to 45,000 in June. The company had increased its electric scooter capacity from 30,000 to 40,000 units a few months ago and will now raise it further to 50,000 a month, say analysts. 

Hero MotoCorp is also planning to double its e2W capacity in Tamil Nadu from the current 330,000 units by 2027. The renewed demand for electric vehicles has also attracted VinFast, which is planning to set up a 1 million units per annum plant in Tamil Nadu for electric scooters in various phases beginning at the end of 2026. 

The strong uptake of electric scooters, which saw its first signs after the West Asia crisis and the rise in petrol prices, has accelerated in FY27. By the end of June, e2W penetration had crossed 10 per cent comfortably — a new milestone for the segment. 

Electric wheels spin faster 

• e2W makers to add 3 million units of annual capacity in phases
• Monthly demand estimated at 240,000- 250,000 units, outstripping supply
• Waiting periods stretch to 45-60 days across leading brands
• FY27 registrations cross 500,000 in Q1, putting the market on track for 3 mn units