Indian EV maker Ather sees 40% of two-wheeler share by FY31

Ather Energy said electric two-wheeler penetration in India could reach 40% by FY31 in an optimistic scenario, driven by new EV launches, government policies, and infrastructure growth.

In its FY25 annual report, the company noted that electric two-wheelers made up 5.8% of total sales in FY25, up from 5.1% in FY24, with electric scooters accounting for about 16% of scooter sales.

Citing VAHAN and SIAM data, Ather said India’s total two-wheeler sales reached 20 million units in FY25.

It projects the electric two-wheeler market to grow at a 41% CAGR, while the internal combustion engine segment may see only 2% growth.

Electric scooters are expected to remain the main driver of adoption, with up to 70% of scooters potentially being electric by FY31.

To support this growth, Ather is expanding production with a new plant in Maharashtra. Once completed, it will bring annual capacity to 1.4 million units.

🔗 Source: Press Trust of India

🧠 Food for thought

1️⃣ Electric two-wheelers achieved unprecedented adoption speed in India

India’s electric two-wheeler market demonstrates one of the fastest technology transitions in the country’s automotive history.

Electric two-wheelers jumped from just 0.19% of total sales in 2020 to over 6% by 2024, peaking at 8.7% in March 20252. This represents a 45x growth rate in under five years.

The rapid adoption stems from substantial cost advantages: electric two-wheelers are now 70% cheaper to run than petrol models, delivering monthly savings of ₹3,000–₹5,000 on fuel and servicing2. For middle-class Indian families where transportation costs represent a significant portion of household expenses, these savings create a compelling economic case.

This acceleration pattern differs from other technology adoptions like smartphones or internet penetration, which typically followed more gradual S-curves over longer periods.

The speed suggests that when electric vehicles reach cost parity with operational savings, consumer behavior can shift remarkably quickly in price-sensitive markets.

2️⃣ Scooter-led electrification reveals India’s unique urban mobility patterns

India’s electric vehicle transition is following a distinct scooter-first pattern that contrasts with car-led EV adoption in Western markets.