Electric motorcycle makers expect some incentives from government

Currently, there are only few brands that manufacture EV motorcycles in India

Electric motorcycle makers have demanded incentives as there are none for this segment of electric vehicles (EVs).

Whether it was Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) between 2019 and 2024 or Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, all the incentives were majorly driven for electric scooters and three-wheelers, they said adding that there should be some announcements from the upcoming Budget too.

“Subsidy should ideally be available only for electric bikes, and in fact, more so for EV bikes than any other segment. The penetration of electric motorcycles is still much lower compared to electric scooters even today. If we look at the overall two-wheeler market in India, nearly 70 per cent of ICE (internal combustion engine) vehicle sales are motorcycles, while scooters account for only about 30 per cent,” Anjali Rattan, Chairperson of RattanIndia that makes Revolt electric motorcycles told businessline.

Therefore, it makes far more sense to continue subsidies for electric bikes so that penetration can reach the level that is realistically expected, she said.

“Withdrawing subsidies too early from this segment will significantly slow down adoption and impact the transition in the biggest part of India’s two-wheeler market,” Rattan added.

Ahmedabad-based electric motorcycle maker Matter, said government intervention (because of schemes like FAME and PM E-DRIVE) has given a lot of benefit to electric scooter. Therefore, electric motorcycles should be given similar incentives to drive this market.

R&D support

“The incentives could be in any shape or form – research and development-led or supply side or demand side incentive – something like a production-linked incentive (PLI); even R&D support because we don’t have much R&D… We (India) are still doing incremental change. So, if the government even incentivise some R&D here, we will suddenly start seeing proper electric motorcycles which operate the way the world wants them to operate,” Mohal Lalbhai, Founder of Matter, told businessline.

Lalbhai said there are representations to the government by the industry and government has taken note of it too, so the industry hopes the Centre would do something for electric motorcycles.

2030 targets

“To achieve our national 2030 targets, the Budget should introduce targeted subsidies and demand incentives specifically for electric motorcycles. Prioritising this dominant segment will unlock the next level of mass-market electrification and move India closer to a truly self-reliant EV ecosystem,” Madhumita Agrawal, Founder and Chief Executive Officer, Oben Electric, said.

Currently, there are only a few brands that manufacture EV motorcycles in India including Matter, Revolt Motors, Ola Electric and Oben Electric. Major two-wheeler manufacturers such as Hero MotoCorp, Bajaj Auto, Honda Motorcycle & Scooter India, and TVS Motor Company are yet to enter the space.

Published on January 26, 2026