Ather Sees 40% EV Two-Wheeler Penetration by FY31

 

Ather Energy projects that electric two-wheelers could achieve 40 percent penetration in India by FY31, supported by new EV launches, government incentives, and expanding charging infrastructure.

In FY25, electric two-wheelers accounted for 5.8 percent of total sales, up from 5.1 percent in FY24, with electric scooters capturing 16 percent of scooter sales. India’s two-wheeler market stood at 20 million units in FY25, according to VAHAN and SIAM data.

Ather expects the electric two-wheeler market to grow at a 41 percent CAGR, compared to just 2 percent for the ICE segment, with scooters leading adoption.

Key Highlights

• Electric two-wheelers could hit 40 percent penetration by FY31
• Scooters may reach 70–75 percent electrification, motorcycles ~10 percent
• Ather building 1.4M-unit Maharashtra plant to meet demand

It estimates that 70–75 percent of scooters could be electric by FY31, while motorcycles may only reach around 10 percent electrification due to rural charging constraints. To meet demand, Ather is expanding production with a new Maharashtra plant, boosting annual capacity to 1.4 million units.

India’s EV adoption has been remarkably fast. Electric two-wheelers grew from 0.19 percent in 2020 to over 6 percent by 2024, peaking at 8.7 percent in March 2025—a 45x increase in under five years. This acceleration outpaces typical technology adoption curves such as smartphones or internet penetration.

Also Read: Ola Electric vs Ather Energy: Q1 FY25 EV Report Card

The shift is driven by strong cost savings: electric two-wheelers are up to 70 percent cheaper to run than petrol models, saving households Rs. 3,000–Rs. 5,000 monthly on fuel and servicing. For India’s price-sensitive middle class, these savings are transformative. The market demonstrates a scooter-first EV transition, unlike Western car-led EV adoption, reflecting India’s urban commuting patterns and infrastructure realities.