Dip in Battery Cost to Boost the Electric Two-wheelers Market | Technavio

LONDON–(BUSINESS WIRE)–#Automotive–The global
electric two-wheelers market is expected to grow at a CAGR of close
to 8% during the period 2017-2021, according to a new market research
study by Technavio.

The report categorizes the global electric two-wheelers market by
vehicle type into segments consisting of electric scooters and electric
motorcycles. The report also determines the geographic breakdown of the
market in terms of detailed analysis and impact, which includes key
geographies such as APAC, the Americas, and EMEA.

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Market driver: decreasing cost of EV battery

The EV battery is one of the prime factors which determines the adoption
of electric
two-wheelers. The battery technology used in an EV plays a crucial
role, as the mile range of the vehicle and the time taken by the vehicle
to charge completely is dependent on the battery. In addition, the
battery accounts for more than 25% of the total cost of an electric
two-wheeler, which in turn, affects the profitability of OEMs and
adoption by consumers.

According to Amey Vikram, a lead analyst at Technavio for automotive
manufacturing research, “The evolution of an EV battery from the
traditional lead-acid battery to the lithium-ion battery has resulted in
the emergence of a battery that is eight times more powerful than the
original. Moreover, the cost of the lithium-ion EV batteries has been
declining since 2010. These factors have helped in reducing the price
gap in comparison to conventional two-wheelers offering the same
performance, which has resulted in increased adoption of electric
two-wheelers.”

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Market trend: increasing popularity of electric off-road motorcycles

Significant investments have been made toward the development of lighter
high-performance electric motorcycles that have a greater drive range,
and the investments are expected to grow further during the forecast
period. With the growing demand for electric vehicles, the cost of
Li-ion batteries and powertrain components is expected to reduce
significantly during the forecast period. This would help in reducing
the overall production cost of high-performance electric motorcycles,
making them more affordable and consequently increasing the prospective
consumer base for the electric
two-wheelers market.

Market challenge: high manufacturing cost

Electric two-wheelers are costly compared to conventional ICE
two-wheelers. However, manufacturers are planning to increase the
production of electric two-wheelers by implementing the concept of
economies of scale to reduce manufacturing costs. They are also trying
to improve the battery technology to reduce the overall cost of electric
two-wheelers. These cost benefits experienced by the electric
two-wheeler manufacturers will be eventually transferred to consumers.

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Key vendors in the market

• Hero Eco
• JIANGSU XINRI E-VEHICLE
• Yadea Technology Group
• Zero Motorcycles
• Zhejiang Luyuan Electric Vehicle

The global electric two-wheelers market is concentrated with many
vendors across the world. Most of the vendors are from APAC, especially
from the emerging countries such as China and India, which are the
leading countries for electric two-wheelers in terms of sales volume.
There are a fewer number of vendors manufacturing high-performance
electric motorcycles. This market is characterized by rapid
technological innovations geared towards reducing costs and improving
performance.

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