Private Capital
Electric two-wheeler
19 Oct 2023
  • The electric two-wheeler (E2W) market comprising roughly 4% of the two-wheeler market in FY23, is on the rise, driven by government (through FAME and other state policies) backing with the goal of achieving a 41% penetration rate by FY30
  • Customers are increasingly embracing electric vehicles (EVs) primarily due to their cost-effective operation and maintenance, and also due to increased awareness of environmental issues 
  • Target is one of the leading players in terms of market share and has highest NPS (~50%) among its peers, primarily attributed to a satisfactory overall ride experience and cost-effective running and maintenance
  • For Indian E2W market, potential for localization of chassis & bodies and Battery Management Systems (BMS) is high while localization of specialized components such as batteries and motors could be limited. The target was one of the leading players in terms of level of self manufactured and domestic sourcing of the components and parts
  • Margins are more attractive for E2W dealers compared to ICE dealers; however, the aftersales revenue streams are limited due to lesser number of moving parts. Target maintains a robust and extensive distribution network across India with high satisfaction levels among dealers due to quality assurance and good margins (8-10%)
  • Target has planned production capacity with the aim of capturing one-third of the E2W market by FY25. Target also plans to build robust charging infrastructure across cities to accelerate adoption and strengthen its EV ecosystem

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