The investments into the electric two-wheeler segment has witnessed a year-on-year dip in 2024. According to data sourced by businessline from Tracxn, a market intelligence and analytics platform, the electric two-wheeler industry received an investment of $193.6 million in 2024, compared to a $444.6 million investment received during the same period in 2023.
The industry witnessed only 18 funding deal rounds from January to June in 2024 compared with 31 during the same period in 2023. “The electric vehicle two-wheeler space has received only $97 million in the first half of 2024, compared to $150 million raised in the same period last year. However, funding in this space in 2024 YTD has reached $189 million accounting for the $71.5 million funding from Ather Energy in August this year. River, provider of EV Scooter, raised $40 million in a Series B round, making it the highest-funded round in H1 2024. Yulu raised $19.2 million in a Series B round, and Zyp Electric raised $15 million and $14 million in two different Series C rounds, respectively. Despite having a funding drop in 2024, Q3 2024 has already become the third highest funded quarter since 2023,” said Neha Singh, Co-Founder of Tracxn.
Registrations up
Further, the two-wheeler electric registrations have also seen a dip in H2. As many as 2,18,243 electric two-wheelers were registered between July till November while 4,83,793 two-wheelers were registered between January and June. “Companies like Ather Energy reaching Unicorn status and Ola Electric going public respectively in August this year will encourage other players in the market to perform well and encourage entrepreneurship in this space,” added Neha Singh.
However, credit rating agency ICRA has projected that investments in the electric vehicle space in the country will increase going ahead. By FY2030, electric two-wheelers will account for 25 per cent of new vehicle sales, while electric three-wheelers and buses will constitute 40 per cent and 30 per cent, respectively. ICRA expects the EV sector to attract substantial investments, with nearly ₹25,000 crore anticipated to be poured into charging infrastructure and localisation of EV components over the next three to four years.
“While the EV sector in India is still in its early stages, the momentum is undeniable. Strategic investments and continued policy support will be essential to overcome existing challenges and position India as a global leader in electric mobility,” said Shamsher Dewan, Senior Vice-President & Group Head - Corporate Ratings at ICRA.