In India, the subsidy for the purchase of electric two-wheelers has been reduced three times between June 2023 and April 2025.
The subsidy for the purchase of electric two-wheelers was 15,000 INR (25,500 yen) per kWh and a maximum of 60,000 INR (102,000 yen) from June 2021 to the end of May 2023, but in June 2023 the subsidy was reduced to 10,000 INR (17,000 yen) per kWh and a maximum of 22,500 INR (38,250 yen). In June 2023, the tariff was reduced to 10,000 INR (17,000 yen) per kWh and a maximum of 22,500 INR (38,250 yen).
In April 2024, it was reduced to 5,000 INR (8,500 yen) per kWh and a maximum of 10,000 INR (17,000 yen) per kWh, and in April 2025, it was reduced to 2,500 INR (4,250 yen) per kWh and a maximum of 5,000 INR (8,500 yen) per kWh.

Even with the reduction in subsidies, demand for electric two-wheelers in India remains strong, with 1,149,000 units sold in 2024, up 33.6% from the previous year, and 500,000 units sold in the first five months of 2025, up 11.6% from the same period of the previous year.
The continued strong demand is due to a series of product launches with reduced battery capacity and lower prices, mainly by the five major manufacturers, Ola Electric, TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp, among others,
In addition, the five major manufacturers, Ola Electric, TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp, have introduced a series of products with reduced battery capacity and lower prices.

As a result, the five manufacturers now account for more than 85% of the electric motorcycle sales market, resulting in an oligopoly of the market.
In addition, the fierce competition for sales has resulted in each company’s electric vehicle business remaining unprofitable, and the battle for market share continues with no regard for profitability.

Sales of electric motorcycles in India are expected to continue to increase even without subsidies, but in addition to profitability, there is the issue of localization of battery cells.
A major shift to electric vehicles will lead to a sharp increase in cell imports and a widening trade deficit. The Indian government has introduced a policy to promote localization of cells, but it is not progressing smoothly.
For this reason, efforts to develop CNG and flex-fuel motorcycles, which can be handled with domestically produced parts and domestic resources, are also gaining momentum.
In particular, the world’s first CNG motorcycle, the Bajaj Freedom, launched by Bajaj Auto in July 2024, is attracting attention with sales of approximately 60,000 units by May 2025.

In light of these new developments in the Indian motorcycle market, we can produce a research report on the Indian motorcycle market outlook for 2035.
We forecast 2035 motorcycle sales of gasoline engine, electric, CNG, and flex-fuel vehicles from various perspectives, including India’s energy policy and the business strategies of major motorcycle manufacturers.