Two-Wheeler EV Sales In 2025: Bajaj, TVS Gain Ground; Ola Electric’s Share Halves |
With a rising base, the growth in two-wheeler electric vehicle (2W EV) registrations saw a sharp slowdown in 2025. Industry growth declined over 20 percentage points to 11.9% last year from 33% in 2024, according to the Vahan portal. Total 2W EV registrations stood at 12.80 Lakh units in 2025 as against 11.44 Lakh units in the previous year.
A key driver of the slowdown was the exhaustion of the first wave of experimental buyers – early adopters who purchased EVs out of curiosity, subsidy benefits or enthusiasm for new-age mobility.
Industry executives say the early-adopter cohort is largely saturated, with the next wave of demand expected from everyday commuters. However, adoption among these buyers is likely to be slower, as expectations around reliability, range consistency, servicing and resale value are significantly higher.
At the same time, the policy environment has also shifted. The government tapered off the high subsidies offered under FAME-II and moved to the new PM E-DRIVE scheme with much lower per-vehicle support.
Under FAME-II, 2W EVs received incentives of up to INR 15,000 per kWh, covering as much as 40% of the vehicle cost. Under the PM E-DRIVE scheme, the incentives dropped sharply to INR 5,000 per kWh (capped at INR 10,000 per vehicle) for FY25, and will fall further to INR 2,500 per kWh (capped at INR 5,000) in FY26. The incentives similarly halved for electric three-wheelers.
Additionally, the Ministry of Heavy Industries has set a sunset date of March 31, 2026 for subsidies on 2W and 3W EVs,........