Over the last few years, Indian metro cities such as Delhi have witnessed alarming levels of air pollution. According to a WHO report, air pollution is a growing concern in developing countries and is a significant cause of death. Vehicles account for a considerable component of air pollution. Thus, there is a push from the government towards e-vehicles like bikes and scooters.
The Indian electric two-wheeler market is estimated to grow by a CAGR of 25% between 2021 and 2026. Moreover, there has been a rise in the share of two-wheeler loans in the loan market. Thus, 2021 would be the best time to invest in an electric two-wheeler as their demand will skyrocket soon due to the following reasons.
An economical option for the Indian middle class
The Indian middle and lower-middle classes drive the growth of two-wheelers. Around 20 million two-wheelers are sold annually in India. Electric two-wheelers will serve as an economical, sustainable, and low-maintenance alternative for customers.
Moreover, they are on par with conventional two-wheelers in style, functionality, and efficiency. Nowadays, attractive two wheeler loan interest rates are available for electric scooters and bikes as well.
Government policies and subsidies for e-vehicles
The Indian government is working towards promoting electric vehicles since 2015. It has launched various policies to subsidise the purchase of electric vehicles. The FAME-1 and FAME-2 are two such schemes that come under the National Electric Mobility Mission Plan. Besides, the two wheeler loan eligibility has become much easier to fulfil.
The emphasis of these schemes is to encourage people to shift to electric vehicles by providing subsidies. Its second phase aims to support over 10 lakh e-two wheelers by March 2022 and increase the frequency of charging infrastructure. Low-speed electric two-wheelers also do not require a transport authority registration, thus making them more accessible for people.
Sustainability has become the talk of the town due to the abruptly changing climate conditions, the surge of infections like the Coronavirus, etc. Commuters are shifting their dependence on fossil fuels and adopting sustainable measures. Thus, electric vehicles are expected to become sought-after by the Indian population soon.
The COVID-19 pandemic has also increased awareness around pollution, the environment and non-public transportation options. The electric two wheeler market in India could leverage this to expand over the next few years and cater to the people’s demands at a lower overall cost than conventional vehicles.
It is evident that electric vehicles will take over the Indian two wheeler market sooner rather than later. If you want to get the most affordable two wheeler loan interest rates, Tata Capital can cater to your needs with interest rates starting from 10.75%.
Moreover, you can choose a flexible tenure and repay the loan in your own time. Leverage the readily available bike loan EMI calculator online, plan your finances smartly, and drive home the e-vehicle of your dreams.