In India’s bustling streets, where two-wheelers are seen as the primary mode of transportation, a powerful shift toward electrification has been underway. Fossil fuels still dominate the South Asian nation’s automotive industry, but a shift towards EVs — particularly in the two-wheeler category — is underway. More than 1.3 million electric two-wheelers have been sold to date, putting the country on track for its goal of 80% electric two- and three-wheelers in the next seven years.
However, this promising trajectory has encountered an unexpected roadblock. Electric scooter sales have taken a hit, and the blame falls squarely on the recent reduction of government subsidies. The fallout may include market consolidation and even exits of some players.
In May, the Indian government revised its incentive scheme called Faster A...
