Exclusive: Factors influencing India's middle class to buy electric scooters

Two-wheelers account for the single largest vehicle category on the road. Almost 80% of the vehicles plying on road are two-wheelers as they help in better commuting services where you can glide across the roads and traffic without much worry of getting stuck in some unwanted jam. As of lately, the two-wheeler industry is witnessing a revolution where numerous people are shifting from conventional petrol-run scooters to electric scooters.

While earlier had some limitations about trusting it (owing to new technology), the recent sales numbers point to favourable signs and factors that people are getting inclined toward electric scooters. The current situation shows how people are favouring the use of electric vehicles. Compared to last year, our sales have boomed by 132% which is a magnanimous jump and we understand the reason behind such a jump.

It must be realized that for a long time, middle-class people have carefully managed their income and expenditure. However, the global pandemic and ensuing lockdown exacerbated the situation, with prices continuing to rise, impacting their monthly income and expenditure. 

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After witnessing such conditions, we understand that traditional petrol-driven scooters and bikes are no more a source of peaceful rides. As of lately, fuel prices have been rising by leaps and bounds which is burdening the middle-class pockets. Here our electric vehicles take away the tension of refilling the bike tanks. All they require is to put in a one-time investment into buying the electric scooters.

Yes, the buying prices are higher than conventional vehicles, but the associated costs are nominal. The e-scooters just require a charge at the end of the day and the next day it is ready to take you out for 75 to 100 kilometres. It's worth noting that riding an electric scooter cost almost a tenth of the price of riding a standard fuel scooter. Not bad at all!

Consequently, the maintenance costs are very low, with the battery replacement or checks making up for the only major chunk of the servicing costs. Overall, riding an electric scooter is much more hassle-free (easy to operate) and comes with environmental benefits.

As the working head behind an electric scooter company, the rapid sales make me happy about how people are getting concerned about the environment and choose to opt for a locomotive that will not harm the environment. Such efforts show a greener side of humankind!

In addition to the existing factors, government support proved to be a massive boost for us. Indian Prime Minister Narendra Modi called for a carbon-free country by 2070. The government also provides various tax remedies and concessions that motivate the middle class to buy electric scooters. The wave percolated to the state governments as well where the government of Odisha promised a 15% subsidy to all individuals purchasing an electric scooter.

The current trends support the fact that electric scooter sales will break the roof with six times more sales in 2022 compared to 2021. If the sale rises like this, the time isn't far when electric scooters will become a prominent presence. Such a scenario will not just save middle-class people from expenditures, but also vouch for a better tomorrow in regards to health and greener ecology.

This article is authored by Sushant Kumar, Founder and Managing Director at AMO Electric Bikes. All views are personal.

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