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Quick Highlights:
- Electric two- and three-wheelers are the backbone of India’s clean mobility transition, not electric cars.
- Electric scooters cost just 38 percent of ICE scooters to own, according to Bajaj Auto.
- Regenerative braking can recover up to 70 percent of energy in real-world traffic.
- Bajaj Auto’s EVs have saved around 230,000 tonnes of CO₂ emissions over five years.
India’s Clean Mobility Reality: Density Over Distance
India’s clean mobility conversation often borrows benchmarks from Europe or North America, but that comparison misses a critical point. As Abraham Joseph, Managing Director of Bajaj Auto Technology Ltd, put it at the Symposium on International Automotive Technology (SIAT) 2026, “India’s problem is not distance, it is density.”
With around 260 million two-wheelers on the road versus nearly 50 million cars, India’s urban transport ecosystem is fundamentally different. I find this framing refreshing because it cuts through the noise and focuses on what actually moves Indian cities every day.
Why Two- and Three-Wheelers Matter More Than Cars
Two- and three-wheelers dominate Indian roads because they are space-efficient, affordable, and practical. Joseph noted that two-wheelers occupy roughly one-quarter of the road space of a car, while costing a fraction as much.
In congested cities marked by heat, dust, uneven roads, and stop-start traffic, small electric vehicles simply make more sense. From my perspective, this is where India’s EV story becomes uniquely its own rather than a copy of Western markets.
The Electric Advantage in Urban Traffic
Electric two-wheelers and three-wheelers outperform ICE vehicles in dense traffic conditions. Electric scooters consume no energy while idling, and regenerative braking recovers energy instead of wasting it.
Joseph highlighted a critical inefficiency in ICE scooters: centrifugal clutches and rubber-belt CVT transmissions, which lose energy constantly in stop-and-go traffic. Electric scooters avoid these losses entirely by delivering power only when needed.
Cost of Ownership: The Real Game-Changer
Cost, not ideology, will decide India’s EV future. According to Bajaj Auto, the total cost of ownership of an electric scooter is about 38 percent of an ICE scooter. That is not a marginal improvement; it is transformative.
Joseph added that regenerative braking can recover nearly 70 percent of energy, extending range and lowering running costs even further. When I look at this data, it becomes clear why electric two-wheelers are scaling faster than any other EV segment in India.
Electric Three-Wheelers and Last-Mile Economics
Electric three-wheelers are delivering equally compelling economics. Compared to diesel models, they offer over a 15 percent improvement in total cost of ownership, along with lower maintenance and operating costs.
Their suitability for last-mile transport improves daily earnings for operators, making electrification not just cleaner but more profitable. This practical alignment of income and sustainability is, in my view, one of the strongest drivers of adoption.
Measurable Environmental Impact from Bajaj Auto
Bajaj Auto reported that its EV portfolio has helped save approximately 230,000 tonnes of carbon dioxide emissions over the last five years. High daily utilisation of two- and three-wheelers magnifies these environmental benefits and aligns closely with India’s ESG and regulatory goals.
Notably, electric vehicles now contribute around 25 percent of Bajaj Auto’s total turnover, and the company’s EV business is already profitable. That combination is rare and important.
India’s EV Market Momentum
India’s EV market continued to expand in 2025, driven largely by mass segments. Around 1.28 million electric two-wheelers were sold during the year, while electric three-wheeler volumes reached nearly 800,000 units.
With the government targeting 30 percent EV penetration by 2030, two- and three-wheelers are expected to lead adoption due to lower upfront costs and faster payback periods.
Engineering Over Subsidies
Joseph was clear that incentives alone cannot sustain the EV ecosystem. “No incentive can sustain a fleet. Only engineering that supports cost structures people can afford will succeed,” he said.
Bajaj Auto has focused on platform-based development, reducing battery, motor, and controller costs by 50 to 70 percent over five years. The company has also invested heavily in in-house motors, controllers, and software, retaining control over both cost and technology.
As Joseph summed it up, “Smart mobility is not a slogan. It comes from sound engineering and understanding how technology can work for people at scale.”
Frequently Asked Questions — FAQs
Q. Why are electric two- and three-wheelers more important than cars in India?
- India’s urban challenge is congestion, not long-distance travel. Two- and three-wheelers are space-efficient, affordable, and better suited to dense traffic conditions.
Q. How much cheaper is an electric scooter compared to an ICE scooter?
- According to Bajaj Auto, the total cost of ownership of an electric scooter is about 38 percent of that of an ICE scooter.
Q. What role does regenerative braking play in EV efficiency?
- Regenerative braking can recover up to 70 percent of energy, improving real-world efficiency, extending range, and reducing running costs.
Q. Are electric three-wheelers financially viable for operators?
- Yes. Electric three-wheelers offer over a 15 percent improvement in total cost of ownership compared to diesel models, along with lower maintenance costs.
Q. Will subsidies remain critical for EV adoption in India?
- In the long run, adoption will depend more on engineering-led cost reductions than subsidies, as affordable and scalable cost structures are key to sustainability.
