India’s is entering a high-growth phase, with start-ups and legacy players locked in a race to define the category. Revenues are estimated to reach $720.4 million in FY26 and are projected to cross $850 million in FY27, informs Diewakarr Anupam Mittal, Director at -based electric cycle maker Aoki Mobility Pvt Ltd, reflecting the rapid expansion of electric mobility in India.
The shift is driven as much by economics as by regulation. Operating an e-cycle costs roughly ₹0.07 per km, compared with ₹2.50 per km for a petrol two-wheeler. At the same time, the ability to charge using a standard 5A home socket does away with the dependence on public infrastructure, making electric cycles a practical choice for both commuters and delivery riders.
Growth is concentrated in the ₹30,000 entry level to the ₹55,000 “mass-premium” segment, with commercial applications emerging as the fastest-growing use case.
“The question is no longer whether the market will grow, but who will own it,” Mittal told businessline.
Start-ups scale up
Start-ups are leading in product innovation and fleet-specific engineering. Aoki Mobility is scaling toward monthly volumes of 2,500–4,000 units and expanding capacity with an 80,000-unit annual assembly line in Greater Noida. The company has pivoted from a consumer-led model to a focus on fleet and last-mile mobility and delivery.
“We are moving beyond a pure consumer play to build a broader mobility ecosystem,” Mittal said. “The next phase will come from combining lifestyle appeal with real-world utility.”
-based EMotorad, another technology-led challenger, is targeting a $100-million run rate in revenues. Backed by over $30 million in funding, the company is investing in in-house battery assembly and motor tuning to reduce costs and tailor products to Indian conditions. It is currently clocking monthly volumes of 6,000–8,000 units, with a strong focus on cargo e-bikes for logistics fleets.
Incumbents lean on scale
Legacy players are betting on brand trust and distribution reach to scale faster. Ludhiana-based Stryder Cycle Pvt Ltd, a wholly-owned subsidiary of Tata International, is expanding its footprint with the Airborne and Arcus models, targeting both the lifestyle and commuter segments, with monthly volumes of 4,000–5,000 units.
“Our focus is to make sustainable mobility both aspirational and practical,” said Rahul Gupta, Business Head, Stryder.
Hero Lectro remains the volume anchor, commanding a 30–35% share of the organised segment with monthly sales of 12,000–15,000 units. After streamlining its portfolio, the company is focusing on entry-level models such as the Y3 (starting at ~₹25,999), while integrating higher-end offerings into Hero’s VIDA ecosystem.
Market still up for grabs
Current volumes point to a fragmented but growing market. By industry estimates, Hero, EMotorad, Stryder and Aoki together account for roughly 25,000–32,000 units a month.
The gap between this and the projected 75,000-unit monthly run rate by FY27 shows how much of the market is still open — and why both start-ups and incumbents are accelerating expansion.
Policy support adds momentum
Regulatory shifts are adding momentum. The draft Delhi EV Policy 2026–2030 proposes restrictions on new ICE two-wheeler inductions in delivery fleets, creating a demand pipeline for low-cost electric mobility solutions such as electric cycles.
E-cycles with motors under 250W and speeds capped at 25 km/h do not require registration, licences or insurance, making them easier to adopt. A lower GST rate of 5 per cent, compared with 12 per cent on conventional bicycles, further improves affordability.
Race shifts to execution
Industry experts expect FY27 to mark a tipping point, with monthly run rates in the organised segment projected to cross 75,000 units, driven by stabilising battery costs and the growing availability of financing.
As EV adoption accelerates and the market expands, the competitive edge is shifting from product differentiation to execution.
“The industry is moving toward a convergence of lifestyle, utility, and technology,” Mittal said. “The winners will be those who can combine scale, affordability and real-world use-cases.”