Electric Two Wheeler: No Tension for Petrol! Tips to Save Money and Reduce Expenses as 'Rare Earth' Shortage Resolves

The electric two-wheeler market, which has been facing challenges due to supply shortages and reduced government subsidies for some time, is now poised to accelerate rapidly. According to a report by CRISIL, sales will increase by 16 to 18 percent in the fiscal year 2027. The main reason for this is the improved supply of rare earth magnets, which will boost production. Previously, due to obstacles in China, growth had fallen to just 12-13 percent in fiscal year 26.

The supply of these magnets, which are a crucial part of electric motors, has improved from China. This will boost e-scooter production and stabilize the market, although it will be slightly less than the 22 percent growth in 2025.

How much cheaper is an e-scooter than petrol?

The cost per kilometer for a petrol scooter is 2 to 2.5 rupees, while for an e-scooter it's only 30 paise. Customers are turning to e-scooters due to significant long-term savings. Next year, the share of e-vehicles in two-wheeler sales will be 7%.

Old brands leading

Companies like Bajaj, TVS, and Hero had a market share of 62% by January 2026. They have both petrol and electric models, reducing risk. New startups are at a loss, as customers prioritize reliable service. These changes will revive the e-scooter market and provide affordable options for customers.