India's electric two-wheeler market is experiencing rapid growth, with sales reaching 1.14 million units in 2024, marking a 33% increase from the previous year. This growth is fueled by government incentives, rising fuel costs, and heightened environmental awareness among consumers. Companies like Zomato, Swiggy, and Zepto are integrating electric motorcycles into their delivery operations to reduce emissions and operational costs. For instance, Zypp Electric has expanded its fleet to approximately 20,000 vehicles, serving major clients like Amazon and Uber, and is recognized as a high-growth company in Asia-Pacific.

Government Initiatives and Market Dynamics

The Indian government has introduced policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme to promote EV adoption. However, recent reductions in subsidies have led to increased retail prices, impacting sales growth. Despite these challenges, the market remains resilient, with legacy players like Hero MotoCorp, Bajaj, and TVS expanding their electric vehicle offerings to meet the growing demand.

The Role of Electric Motorcycles in Last-Mile Delivery

Electric motorcycles offer several advantages for last-mile delivery operations, including lower operational costs, reduced emissions, and enhanced maneuverability in congested urban areas. The integration of electric motorcycles aligns with companies' sustainability goals and contributes to cleaner air quality in cities. As the charging infrastructure improves and battery technologies advance, the adoption of electric motorcycles is expected to increase, further supporting the transition to zero-emission delivery fleets.

Future Outlook

The Indian electric two-wheeler market is projected to reach 11.1 million units by 2033, growing at a compound annual growth rate (CAGR) of 28.5% from 2025 to 2033. This growth is attributed to continued government support, advancements in technology, and increasing consumer demand for sustainable transportation options. Companies like Zomato, Swiggy, and Zepto are well-positioned to capitalize on this trend by expanding their electric delivery fleets and contributing to India's zero-emission objectives.