Electric Motorcycles in India Face Structural Growth Barriers

Electric motorcycles in India have struggled to gain meaningful market traction despite growing interest in electric mobility. During a closed-door discussion with policymakers, leading two-wheeler manufacturers highlighted that the limited presence of electric motorcycles is not driven by weak consumer demand but by a combination of financial, operational, and regulatory challenges.
Industry Concerns Around Electric Motorcycles in India
Senior representatives from established and emerging two-wheeler manufacturers explained that several structural hurdles are slowing the launch and scale-up of electric motorcycles in India. According to industry feedback, these challenges affect both manufacturers and end consumers, making the segment commercially difficult to sustain at present.
Financing Constraints Remain a Key Obstacle

• One of the most pressing issues raised was limited access to affordable financing for electric motorcycles in India.

Large financial institutions remain cautious about offering retail loans for electric motorcycles, citing risk concerns. Smaller lenders that are willing to finance such vehicles often charge interest rates reaching 21 per cent, significantly increasing ownership costs.
Charging Economics and Product Limitations
Manufacturers also pointed to unviable charging economics as a deterrent. Inadequate charging infrastructure, coupled with higher battery costs and range limitations, restrict the practical usability of electric motorcycles. These factors make it difficult for companies to position electric motorcycles as viable alternatives to conventional internal combustion engine models.
Policy Gaps Impact Market Readiness
Beyond financing and technology, policy uncertainty continues to weigh on investment decisions. Industry participants indicated that gaps in long-term policy clarity and incentive structures limit confidence in scaling electric motorcycle platforms. Without consistent regulatory support, manufacturers remain cautious about committing large capital to this segment.
Collectively, these factors explain why electric motorcycles in India have yet to see widespread adoption, even as electric scooters gain momentum. Addressing financing accessibility, charging economics, and policy alignment will be critical for unlocking growth in this segment.