High costs, complex R&D hindering electric motorcycles: NITI Aayog

Electric motorcycles remain stuck at negligible adoption in India as high R&D costs, tech limits and price sensitivity slow progress, says a NITI Aayog analysis

Electric motorcycles (ebikes) are struggling to take off in India due to complex research and development (R&D) that drives up costs, the absence of global price-sensitive reference models requiring R&D to start from scratch, technology constraints in meeting consumer expectations on power, speed and range, and legacy brands opting to be fast followers rather than first movers in the segment, according to an analysis done by NITI Aayog. 

Electric motorcycle penetration remains negligible despite motorcycles accounting for nearly two-thirds of India’s two-wheeler (2W) market, with ebikes contributing barely 0.1 per cent of total sales. In contrast, scooters — making up roughly one-third of the 2W market — have achieved close to 15 per cent electric vehicle (EV) penetration. 

 

Electrification of motorcycles faces several challenges, starting with consumer expectations. Motorcycles in India are strongly associated with high power, higher speeds, and longer riding range, and current electric motorcycle technology is unable to deliver all these attributes simultaneously at a cost comparable to internal combustion engine (ICE) models, according to a NITI Aayog document, which was prepared a few months ago and was recently reviewed by Business Standard. 

Technical and economic constraints further complicate the transition, the document said.  

“The R&D for motorcycles is much more complex. To provide both high power and range, similar to an ICE vehicle, the batteries need to be bigger and need more space, which is a constraint in motorcycle chassis,” it added. This also leads to higher vehicle prices, posing a major hurdle in a market where nearly 65 per cent of motorcycle sales are in the sub-110 cc segment, and buyers are highly price-sensitive. 

NITI Aayog highlighted that electric motorcycle development lacks learning spillovers from international markets. Unlike electric scooters (escooters), which benefited from existing models and supply chains in China, no comparable global reference ecosystem exists for electric motorcycles, requiring manufacturers to build R&D capabilities largely from scratch. 

In addition, legacy motorcycle brands are opting to be “fast followers” rather than “first movers” in the electric motorcycle segment, NITI Aayog stated. A similar approach was used in the escooter segment, where legacy brands allowed startups to take the initial risks and learn from their mistakes before entering the market themselves. “Hence, with legacy brands having a strong brand presence, distributor network, and after-sales service, the battle is uphill for electric motorcycle startups,” the NITI Aayog mentioned. 

Currently, India’s e2W market has only a limited presence of electric motorcycles, with most EV adoption concentrated in scooters.  

Only a handful of firms such as Revolt Motors, Ultraviolette Automotive, Oben Electric, and Matter Motors are selling electric motorcycles in the country. NITI Aayog did not respond to queries sent by Business Standard on this matter.

In its document, NITI Aayog also elaborated on this divergence — why escooters are being adopted faster than electric motorcycles — stating that it reflects structural and technological differences between the two segments rather than weak demand for electric mobility. 

Electric scooters gained early traction due to their suitability for commercial use, particularly in delivery and shared-mobility operations, where lower running and maintenance costs offered a clear advantage, it mentioned. The rise of the gig economy further accelerated adoption, as delivery workers increasingly leased escooters to reduce daily operating expenses. 

Urban usage patterns also played a critical role, according to the document. Scooters are primarily used for city commuting, where lower speeds and limited driving ranges — both constraints of current EV technology — do not pose significant problems. As a result, escooters were able to replace petrol scooters without forcing users to compromise on practicality. It added that petrol scooters typically deliver fuel efficiency of around 45-55 km per litre, which does not offer a decisive cost advantage over escooters that have 25-40 per cent lower running costs. 

From a design standpoint, scooters were inherently easier to electrify, the NITI Aayog stated. Their gearless architecture translates smoothly to electric drivetrains, which also do not require gears.  

Motorcycles, on the other hand, are traditionally geared and designed for higher power output, making the transition more complex.  

It further stated that escooters found strong acceptance among urban women, students, and older riders due to their ease of operation. 

Original equipment manufacturers, the NITI Aayog said, initially focused their EV R&D on scooters because costs were lower and learnings could be borrowed from international markets, particularly China. Early reliance on imported scooter kits from China helped reduce development timelines, and enabled faster market entry, accelerating adoption in India. 

Braking bad

• No global reference models for ebikes complicating R&D process
• Current ebikes in India fall short on power, speed and range
• Legacy brands prefer startups to act as first movers in the segment
• Technical and economic constraints further complicate the situation