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India remains world's 2nd biggest electric two-wheeler market, records sluggish growth
India was the second biggest electric two-wheeler market globally in 2025, right next to China, but it witnessed a sluggish growth pace.
India is the largest two-wheeler market in the world, having surpassed China in both total sales volume and active fleet size. Every year, India registers more than two crore units of two-wheelers sold across the country, which accounts for more than half of the total global two-wheeler sales volume. China follows closely in the second place. However, when it comes to electric two-wheelers, India retained the second position in the global chart, right after China in 2025.
The Global EV Outlook report by the International Energy Agency has revealed that India’s electric two-wheeler sales, in 2025, increased to about 13 lakh units, representing roughly 6% oif total domestic two-wheeler sales of the country recorded last year. However, despite retaining the second position in the chart, India's electric two-wheeler growth pace last year was sluggish in contrast to the global pace.
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The international market witnessed electric two-wheeler sales growth at 15% YoY (Year-on-Year) at one crore last year, representing about 14% oif total global two-wheeler sales. Chart-topping China recorded 10% YoY growth in sales of electric two-wheelers in 2025, when it registered more than 70 lakh units, contributing over 55% of the country's total two-wheeler sales.
What impacted India's electric two-wheeler growth pace in 2025?
India's electric two-wheeler growth pace was impacted by multiple reasons in 2025. Under the previous FAME-II scheme that was introduced to boost EV adoption across India, electric two-wheelers were eligible for subsidies of up to 40% of the vehicle costs. Under the PM E-Drive scheme, incentives were slashed significantly in FY25 and again reduced further in FY26. The new scheme also requires increased localisation to be eligible, which is a costly affair for many manufacturers, eventually resulting in reduced model availability with subsidy eligibility.
In 2025, during the festive season, the Indian government reduced the GST rates for ICE-powered two-wheelers, which propelled the growth of the segment significantly. Many potential electric two-wheeler buyers shifted their focus to ICE-powered models, which also impacted the growth pace of the electric motorcycles and scooters.
