An Industry Note: The Market for Electric Two Wheelers in India

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Case Details:

Report Code : BREP049
Report Length : 13 Pages
Period : 2006 - 2009
Organization : Hero Electric, Electrotherm India Ltd., Ultra Motors India
Pub Date : 2009
Teaching Note : Not Available
Countries : India
Industry : Auto and Ancillaries

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"Electric vehicles are one of the alternate options to address the twin challenges of energy savings and environmental safety. However, there are a few challenges that need to be overcome.... The overall policy framework needs to be more clearer on regulatory front and as electricity is produced through coal, so the overall emissions need to be cleaned first."³

Dilip Chenoy, Director General, SIAM⁴, in September 2008.

"In Asia Pacific and India, the running cost turns out to be the biggest factor associated with the two-wheeler industry." ⁵

Deba Ghoshal, Director (Marketing), Ultra Motor India⁶, in June 2008.

"One of the main reasons electric vehicles have thus far failed to break out into the mainstream is due to the lack of infrastructure in place - namely the fact that there are no recharging stations for electric vehicles to be re-powered while on the move. Hero Electric is now attempting to address this problem by setting up a network of charging stations for electric 2-wheelers across India."⁷

Sohinder Gill, CEO, Hero Electric⁸, in September 2008.

Introduction

In its publication, World Energy Outlook 2008,⁹ Paris-based International Energy Agency (IEA)¹⁰ forecast an increase of 45 percent in the demand for energy globally by 2030 with India and China being the foremost consumers...

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3] S Ronendra Singh, "Auto Industry Debates the Future of Electric Vehicles," www.automonitor.co.in, September 22, 2008.
4] SIAM stands for Society of Indian Automobile Manufacturers. It is an apex industry body representing leading vehicle and vehicular engine manufacturers in India.
5] Gajanan Khergamker, "E-bikes: On the Right Track!" http://economictimes.indiatimes.com, June 5, 2008.
6] Ultra Motor India (Ultra Motors) was a wholly-owned subsidiary of Ultra Motor Company, UK, which was one of the pioneers in electric two wheelers segment.
7] "Hero Electric Unveils Charging Stations," www.moneycontrol.com, September 2, 2008.
8] Hero Electric is a wholly-owned subsidiary of the Hero Group. The company is one of the leading players in the Indian market for electric two wheelers.
9] World Energy Outlook is an annual publication which gives long term forecasts on energy supply and demand.
10] IEA is an organization offering its expertise on energy policies to member countries so that members guarantee consistent, clean, and reasonably priced energy to their citizens.