“Government Pushes Electric Vehicle Agenda as India’s Two-Wheeler Startups Skyrocket to 150+ Players”

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The number of startups in India’s electric two-wheeler market has surged to over 150 from 54 in 2021, driven by government incentives to promote clean vehicles and cut oil imports, according to a new analysis. “Most are competing in the mainstream, and 85% of the 65 models launched last year were such products: high-speed as against speed and range-constrained products, which used to be a feature of the startups,” Bernstein analysts wrote. The government has offered incentives under its FAME II scheme, which provides subsidies to buyers and was recently extended to 2024. Bernstein’s analysis found low barriers to entry, with electric two-wheelers built using outsourced models and readily available components. Most established automotive companies have been granted PLI while only a few startups qualified, potentially providing a cost advantage for major incumbents, Bernstein said.