01 Rising Demand for Energy-Efficient, Lightweight, and Technologically Suite VehiclesGovernments all around the world have enacted strict laws and restrictions as a result of the increase in vehicle emissions. Manufacturers of automobiles and automotive parts are more concerned with lightening the load on the vehicle to increase fuel efficiency. Another significant step toward reducing emissions in many developing economies is using electric vehicles. Governments are encouraging the adoption of more electric vehicles by offering incentives like subsidies and tax exemptions. The Faster Adoptions and Manufacturing of (Hybrid and) Electric Vehicles (FAME) initiative provides tax breaks and incentives in India.Additionally, customers who purchase electric 2-wheelers under the FAME initiative are eligible for a subsidy of INR 10,000 per kWh of battery capacity, and INR 2000 crores have been set aside to support the sale of approximately 1 million electric 2-wheelers by March 2022.In the United States, a federal tax credit went into effect in December 2019 and applied to new electric bikes bought between 2018 and 2020. The development in battery technology, including the advent of lightweight cells, improved safety features, such as traction and throttle control, and a noticeably better method of power distribution, are to blame for the rise in demand for electric bikes and scooters.
01 Lack of InfrastructureEven though electric scooters and motorcycles are essential for reducing global transportation emissions, the lack of crucial infrastructures, such as charging stations, has restricted the worldwide market to a few nations. In most developing countries, electric two-wheelers are restricted to driving within the city limits since they lack charging stations outside the city because the battery packs that power them provide a set amount of range before recharging.Typically, the OEM will install a home charging station at the appropriate place after you purchase an electric two-wheeler. However, there is a danger that drivers would become stranded in regions without the necessary charging infrastructure because the power delivery of e-scooters depends on usage patterns.
01 Evolving Emission RegulationsThe role of electric cars (EVs) has increased due to the gradually stricter fuel economy and tailpipe CO2 limits. Governments and towns have implemented incentives and rules to hasten the transition to sustainable mobility. As a result, regulators are setting stricter emissions objectives at the national and international levels. In light of this, the European Union (EU) has unveiled its "Fit for 55" program, which aims to coordinate policies related to the environment, energy, transportation, and land use to cut net greenhouse gas emissions by at least 55% by 2030. The US Department of Transportation has set a 50% electric vehicle target for 2030.The switch from fossil fuels to electric vehicles in developing and post-industrial nations are supported by the UN Environment's Electric Mobility Program. This includes formulating roadmaps for electric mobility at the national and regional levels, developing legislation, sharing best practices, piloting technological choices, monitoring EV uptake, estimating emissions and economic benefits, and more.
May 2026 Ola Electric approved an investment of approximately USD 208.5 million in its electric vehicle and battery cell manufacturing businesses. The investment is intended to expand in-house battery production, increase manufacturing automation, and support the launch of new affordable electric two-wheelers.
November 2025 TVS Motor Company unveiled six new electric and premium two-wheeler models at EICMA 2025, including the TVS M1-S electric maxi-scooter and the TVS eFX electric bike. The company also showcased four new Norton Motorcycles models as part of its global product expansion strategy backed by investments in R&D and manufacturing.
July 2025 Kinetic Watts and Volts re-entered the Indian electric two-wheeler market with the launch of the Kinetic DX electric scooter. The launch marks the company's return to the scooter segment with a connected EV platform featuring smart mobility technologies and an extended riding range.
June 2025 Vmoto entered into a strategic partnership with Uber Eats to accelerate electric two-wheeler adoption among delivery couriers across several European cities. As part of the collaboration, the companies also announced plans to establish London's first battery-swapping pilot for electric mopeds, supporting sustainable last-mile delivery operations.