India’s market remains small but is gearing up for a sharp scale-up, with manufacturers targeting volumes of 40,000–50,000 units by FY27.
Electirc motorcycles sales reached around 17,173 units in FY26, as per information collected from the government of Indias VAHAN portal.
The push is being led by a mix of new-age and legacy players. Ahmedabad-based Matter Motor Works, which made its debut with India’s first geared motorcycle brand “Aera,” is betting on AI-powered motorcycles to drive the next phase of adoption,.
Even legacy heavy-duty motorcycle ICE specialist Royal Enfield Flying Flea’s debut in electric motorcycles is all set to hit the dealerships by the second week of April, signalling broader momentum in the category.
Mohal Lalbhai, Co-Founder and Group CEO
Despite the growth, the category remains minuscule, less than 0.1% of India’s overall two-wheeler market and a fraction of the 13 lakh electric scooters sold during the year. The gap highlights the distance the segment still needs to cover even as expectations begin to build.
Matter is among a clutch of early movers betting that the next leap in electric motorcycles will come not from bigger batteries, but smarter machines. Its AI-driven platform learns from rider behaviour and usage patterns to optimise performance, aiming to move the category from feature-led upgrades to intelligence-driven mobility.
“If electric motorcycles have to go mainstream in India, they have to get smarter—not just cheaper. Improving real-world range and riding experience through AI is what can expand the market, not just shift share,” said Mohal Lalbhai, Founder and Group CEO, Matter. The company plans to roll out its first AI-based update by mid-2026.
Industry estimates suggest the electric motorcycle market could expand to 40,000–50,000 units in FY27, implying growth of 130–190 per cent from current levels, driven by new launches and deeper distribution by both start-ups and established manufacturers.
VAHAN data shows electric motorcycle volumes rose 28 per cent year-on-year from 13,430 units in FY25 to 17,173 units in FY26.
Within this, the competitive landscape is shifting, with early mover Revolt Intellicorp seeing volumes decline 10 per cent to 10,444 units. In contrast, newer players scaled rapidly, Oben Electric grew 298 per cent to 3,719 units from 1,248 units, while Ultraviolette Automotive rose 384 per cent to 2,102 units from 547 units.
The shift is also being shaped by aggressive pricing. Ola Electric has cut prices sharply on its Roadster range, with entry variants now priced close to 100cc petrol motorcycles and higher-capacity models seeing reductions of up to ₹60,000, signalling a push to unlock mass-market demand.
On the demand side, use cases are beginning to evolve. Electric motorcycles are increasingly being seen as better suited than scooters for higher-load and longer-distance applications such as delivery fleets, logistics and bike-taxi operations, particularly in Tier 2 and Tier 3 markets where cost economics are more decisive.
The pipeline of upcoming launches is already building. Royal Enfield’s entry this month marks the first major push from a legacy player, while TVS Motor is preparing an electric Apache for a late 2026 or early 2027 debut.
Hero MotoCorp and Bajaj Auto are also expected to step up their presence over the next 18–24 months. The staggered timelines suggest incumbents see long-term potential but are waiting for technology, pricing and demand to align before scaling up.
Matter is targeting volumes of around 20,000 units in FY27, reflecting early confidence in the category’s scale-up potential. The company, which has raised close to $100 million to date, is looking to raise an additional $150–200 million to scale manufacturing and expand its retail footprint.
If scooters defined the first phase of India’s EV transition, motorcycles could shape the next—but the shift is likely to be slower.
“Electrification in India’s two-wheeler market has so far been predominantly scooter-led, with motorcycles, despite forming the bulk of the market, still at a nascent stage,” said Hemal Thakkar, Senior Director and Senior Practice Leader at Crisil.
He added that motorcycle usage demands longer range, higher durability and versatility across urban and rural conditions, making electrification more complex from both a technology and cost standpoint. Current offerings remain split between premium performance models and more affordable options that still face limitations around range, charging infrastructure and service reach.
While upcoming launches, including Royal Enfield’s Flying Flea and other OEM entries, signal rising strategic interest, meaningful scale-up will depend on delivering competitive pricing, real-world range, and reliability together. “We see electric motorcycles as a medium- to long-term opportunity, with the segment likely to remain ICE-dominated in the near term,” Thakkar said.