The Indian E-Bike Rental Market is anticipated to register a CAGR of over 6.0% during the forecast period (2020 – 2025).
- India E-Bike Rental industry is still at a nascent stage in the. But, E-Bikes have a leaner volume, which significantly reduces traffic congestion while providing the same utility as most two-wheelers with an added benefit of reduced ill-effects on the environment. Many young engineers and entrepreneurs with experience in design and innovation see E-Bikes as a massive opportunity in India.
- The Indian government has reduced from the existing GST on EVS from 12% rate to 5% as against 2% for conventional vehicles. The Ministry of Power has also allowed the sale of electricity as a 'service,' allowing payers to provide charging units electric vehicles. Such incentives are attracting investments into E-Bikes and the infrastructure required for charging.
- India's startup capital, Bangalore, is also the home to emerging E-Bikes startups like Ather Energy and Yulu. Ride-hailing giant Ola and Uber have now heavily invested in scooter rental startups such as Vogo and Hulu, respectively. They provide services in over 150 Indian cities and towns and projected to reach 450 cities and towns by the end of 2020.
Key Market Trends
Technological Advancements Driving Growth for E-Bikes
E-Bikes are environmentally friendly, running majorly on Li-ion chargeable battery. It can offer a maximum range of 99.4 miles (160 km) in one single charge. With options of battery typing 8, 12, or 18-amp hour batteries, it also provides choice for the customer as per their utility.
E-Bikes have an integrated electric motor aligned to the pedals of the bicycle, which supplies differential force used for the forward movement of the bike. In 2018, 88.32% of the global E-Bikes market was dominated by pedal-assisted in the propulsion segment
Indian cities have jam-packed roads. With the increasing number of vehicles, the existing infrastructure is unable to meet needs in every town and lanes. Traffic congestion inhibits the productivity of people with a lot of time lost waiting. As a result government, today is promoting the sales for E-Bikes as they occupy lesser space resulting in more minor traffic jams.
India will become the top market for E-bike rental businesses
Companies like Bajaj Auto, known for bringing successful scooter models like Chetak, are partnering with E-bike startup. With a growing demand for micro-mobility and share-mobility spaces, many of the established 2- wheeler automakers such as Bajaj are working along with fresh start up's such as 'Hulu,' offering its operational learning with decades-long of experience in the Indian 2-wheelers market.
The Government of India is also encouraging to use E-Bikes. By the end of 2035, the government wants to convert all fuel-run vehicles into electric vehicles. E-Bikes can ride as fast as 25 kmph (15.5 mph), and cover 60 km (37.2 miles) in one charging cycle. Many startups are working on battery manufacturing and also expanding spaces for parking and charging stations.
Although in India, setting up parking stations and charging stations for rental purposes remains a challenge given the densely populated cities and town. However, adequate freshly charged batteries can be swapped relatively quickly with minimal money invested into other barriers such as transportation and extraction costs, which remain fluctuating and are no longer economical for a country like India.
The Indian government has also granted an exemption of registration fees for battery-operated/electric vehicles and even an exemption to permits to E-Vehicles running on ethanol and methanol fuels. It has also allowed obtaining driving licenses to drive e-scooters for the age group of 16-18 years. All these indicate a bright future of the E-Bikes vehicles in the country.
The Indian E-Bike Rental Market is hugely fragmented with various startups and regional players such as Vogo, Hulu, Bounce, Ather Energy, Giant Bicycles. Although to have the edge over its competitors, the major car manufacturers are making joint-ventures, partnerships to launch newer products. For instance,
Bangalore-based electric bike-sharing platform 'Yulu' has partnered with Uber and Bajaj Auto. Since its launch of two-years, it has raised about USD 16.5 million and operates across Bangalore, New Delhi, and Mumbai. Currently, with over 3,000 electric bikes on its platform, the company plans to bring 100,000 two-wheelers to its fleet by the end of 2020.
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