In emerging markets like India, China, and Thailand, electric bikes/electric motorcycles are furthering the EV revolution. These electric two-wheelers (e2Ws) — promising affordability, adaptability to local terrain, and efficiency in traffic — will continue to be the focal point for original equipment manufacturers (OEMs) looking to thrive in such regions.
With over 6.3 million e2Ws on the road globally, and a robust CAGR of 28.4% (2023–2030), the industry is witnessing rapid growth, encouraging OEMs to make substantial investments in advancing battery chemistries for better performance, safety, and optimized charging.
Also, the adoption of innovative online sales and service platforms and improved customer engagement strategies are paving the way for sustained growth, despite subsidy cuts and recent growth slowdowns. This is a pivotal moment for both new entrants and established players in the electric two-wheeler market to redefine their strategies and seize emerging opportunities.
But which strategic considerations should you leverage for competitive success?
Frost & Sullivan’s growth experts have identified ten key strategies for electric bike manufacturers, battery makers, and even growing ecosystem players in two-wheeler focused regions like India, to navigate this dynamic landscape and foster innovation. Read on to learn more.
Innovative Business Models
- Online Sales and Service Platforms: With a growing base of young digitally savvy customers, OEMs are leveraging online platforms for electric bikes and electric motorcycles to streamline purchasing processes and offer exclusive discounts, simplifying the buyer journey.
- Enhanced Digital Customer Engagement: Social media and digital channels are driving awareness and engagement, incentivizing electric two-wheeler OEMs to offer personalized services and beyond-the-basics customer experiences.
Internal Challenges
- Competition from Traditional Manufacturers: Conventional two-wheeler OEMs are cautiously entering the e2W space, often adopting a single-model strategy to attract both existing and new customers.
- Quality Assurance: With unregulated players affecting market confidence, leading manufacturers are investing in consumer education through roadshows and marketing campaigns to highlight product quality and reliability.
Disruptive Technologies
- Enhanced Designs and Connectivity: Innovations in eBikes, such as advanced battery chemistries and connected features, are allowing for higher efficiency, accessibility, and cost-effectiveness.
- Thermal Management Systems: To address challenges posed by harsh climates and varying terrains, manufacturers are investing in thermal systems or in-house solutions that optimize battery and motor performance.
Is your organization ready to leverage disruptive technologies for a competitive edge?
India is at the epicenter of the electric two-wheeler revolution, boasting CAGR growth of 43.3% (2023-2030) and record-breaking adoption rates. Favorable government policies, tax incentives, and a shift towards self-sustainability are driving this surge.
Key Strategic Imperatives for India
- Innovative Technologies: The integration of connected mobility and cutting-edge battery chemistries is promoting a safer and more sustainable e2W ecosystem, encouraging ecosystem players to opt for a holistic approach to two-wheeler advancement.
- Collaborative Ecosystems: Partnerships between OEMs, energy providers, and government bodies are accelerating the development of robust EV infrastructure.
Advancing Battery Chemistries for e2Ws
Battery innovation lies at the heart of the electric bike revolution. While lead-acid and lithium-ion batteries dominate the market, emerging technologies like sodium-ion and solid-state batteries hold promise for enhanced safety, performance, and cost-efficiency.
Strategic Imperatives for Battery Chemistries
- Disruptive Technologies: Addressing long charging times (5–8 hours for a full charge) is proving pivotal for high-mileage users and delivery services. To bridge this gap, players are innovating compounds, optimizing battery technologies, and expanding charging infrastructure.
- Battery Swapping Models: Subscription-based battery-swapping solutions backed by consortiums and networks are reshaping the market, reducing charging time, and encouraging adoption.
If you’re unsure how to effectively leverage these strategic imperatives to your advantage, Frost & Sullivan’s team of growth experts is on hand to assist you in tackling and overcoming constraints while identifying fresh growth prospects for your organization.
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