Riding the Electric Wave: How India's E-Two-Wheeler Market Accelerated Despite GST Challenges

India's electric two-wheeler market showed resilience and steady growth with registrations increasing 2 percent month-on-month in September 2025, despite challenges from implementation of GST 2.0 which impacted sales days. The rise to 92,536 units from 91,091 units in August indicates sustained consumer interest amid evolving market dynamics and competitive shifts among leading manufacturers.

Key Developments From September Data

Electric two-wheeler registrations rose 2 percent MoM to 92,536 units despite nearly 20 days of GST 2.0 related disruptions.

TVS Motor led the market with 21,132 registrations, though down 4.3 percent from August, citing magnet shortages as a constraint.

Bajaj posted a striking 67 percent jump to 19,469 units, reclaiming second place ahead of Ola, which declined 28 percent to 13,069 units.

Ather Energy secured third place with a 5 percent increase at 13,933 units; Hero MotoCorp’s registrations dipped 4.37 percent to 12,730 units.

Market Dynamics and Consumer Trends

Despite some supply challenges, the electric two-wheeler segment continues to offer competitive pricing advantages, helped by a favorable 5 percent GST rate. Manufacturers have also broadened affordable model options, sustaining consumer momentum even as growth rates moderate compared to earlier periods. The market remains intensely competitive with players jostling for position through pricing, innovation, and after-sales experience improvements.

Outlook In Electric Two-Wheeler Space

The 2 percent monthly growth amid regulatory changes and component shortages highlights the sector’s robustness. Industry observers expect gradual normalization post-GST 2.0 transition and stronger festive season demand to drive sustained volume gains. Leaders like TVS and Bajaj are well-positioned to capitalize on this growth, while companies like Ola face challenges to reclaim market share amid rising competition.

Source: The Hindu Businessline, Moneycontrol, EV India, Entrackr, Bloomberg