Rising Competition In Indian e2W Industry To Drive Growth To 25%

New Delhi: The growing competition in the electric two-wheelers (e2W) industry will drive the volume growth to 25 per cent in current fiscal (FY26) after crossing one million units (6 per cent of total 2W market) in fiscal 2025, a report said on Thursday.

Backed by increasing availability of models and wider reach of distribution network of the legacy players, the favourable cost economics of e2W compared with the Internal Combustion Engine (ICE) variants will support growth, according to a Crisil Ratings report.

Meanwhile, legacy manufacturers can ride on strong cash flows from their ICE business but pure e2W makers will rely on incremental equity raises over the medium term.