The contrast increases when you view it against the background of the larger two-wheeler.
India’s overall two-wheeler market, which is dominated by petrol-powered motorcycles and scooters, sold 2.52 million units in November 2025, a modest decline of 3.94% from its high levels in 2024. A small seasonal decline perhaps, but the fossil fuel-burning internal combustion engine (ICE) segment is demonstrating something the EV segment is not: stability.Older manufacturers continue to anchor the market. Hero MotoCorp retained its leadership, followed by Honda and TVS, marking a return to steady demand for petrol models even as the festive surge waned. The resurgence underlines the surprising reality that while electric vehicles were expected to disrupt ICE’s dominance by now, the ICE market appears much more predictable and resilient, experts say.
In stark contrast, Indian electric two-wheelers sold 117,000 units in November, a 2.3% year-on-year contraction and a shocking turnaround for what was once the country’s fastest-growing mobility segment.
End of the road for many
India today has at least 173 electric two-wheeler makers, a product of post-FAME subsidy exuberance, easy venture capital funding and the belief that the EV wave would lift all boats. But last month, more than 46 of these companies reported zero sales, and about 100 players sold fewer than 10 units. “Many startups scale prematurely, relying on early subsidies and hype, only to discover that without trust, service networks and working capital, the mass market simply won’t bite,” says Ravi Bhatia, president of Jato Dynamics, which collected the data.
Even among established players, the ground is shifting. Ola Electric had the largest market share, ahead of TVS Motor, Bajaj Auto, Ather and Hero MotoCorp. But in 2025, the order reversed: TVS now leads, followed by Bajaj, while Ola drops to third. Ather and Hero complete the top five.
“We saw our market share grow, led by the scale of Rizta, our family scooter, and further accelerated by our aggressive distribution expansion,” said Ravneet Singh Phokela, CBO, Ather Energy.
“We are excited about what lies ahead in the year ahead: a clear trend towards premiumization, continued expansion of the retail network, launch of products on the new EL platform and expansion of production capacity at our upcoming plant in Chhatrapati Sambhajinagar,” said Phokela.
TVS Motor Co said on its latest earnings call that while there were some limitations in magnet availability, the last three years show that customers understand the total cost of ownership (TCO) of electric vehicles. This will bring a huge change in the thinking and penetration of electric vehicles. Previously, everyone focused on the city, but slowly they are now entering the rural markets as well.
The most dramatic fall is that of Ola. Long positioned as the face of India’s EV revolution, its market share collapsed from 42.5% to 18.3%. Repeated service complaints, quality inconsistencies, battery incidents and viral customer testimonials have eroded trust.
At the same time, dozens of smaller companies, initially buoyed by government incentives, are now facing compliance issues, supply constraints or financial crises. Some have stopped production; others left quietly. For a category still dependent on first-time buyers, instability in the manufacturer ecosystem translates directly into purchasing hesitation.
Yet perhaps the most decisive factor behind the slowdown is the one that policymakers thought would help EVs the most: the September 2025 VAT reset. While EVs continued to be taxed at 5%, VAT on petrol two-wheelers was reduced from 28% to 18%.
“This move immediately made ICE scooters cheaper on the showroom floor. Combined with the higher taxes that EV manufacturers continue to impose on batteries, semiconductors and power electronics, the result was an increase in upfront prices by Rs 20,000-25,000,” said a senior official of an electric two-wheeler company.
Buyers in this segment focus on monthly EMIs. Overnight, gasoline reemerged as the more attractive choice, the official said.
The structural challenges go deeper. India’s shift from motorcycles to scooters in urban and semi-urban markets should have accelerated the adoption of electric vehicles. But the mass buyer faces limited, high-confidence EV options, uncertain resale value, inconsistent financing, and ongoing charging concerns in apartments and rental properties.
The battery architecture has increased the bottleneck. Despite years of discussions about swapping and Battery-as-a-Service, the majority of Indian electric two-wheelers still use solid-state batteries. Without reliable home or shared charging, this category remains urban and exclusive.
“The slowdown in EVs in India has nothing to do with technology,” says Bhatia. “It’s about breaking pricing logic post-GST reset, instability among manufacturers and insufficient financing and resale confidence. Unless all three are resolved together, EV penetration will remain cyclical rather than increase.”
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