Spiralling input costs put e-cycles on rough track

Minna Zutshi & Vijay C Roy

Tribune News Service

Ludhiana/Chandigarh, July 18

Despite the government’s special focus on promoting electric vehicles, the high cost of pedal-assisted electric bicycle is a major deterrent to the buyers.

According to the Society of Manufacturers of Electric Vehicles (SMEV), an annual sale of e-cycles in the country is only 3,600 units.

At present, sales of e-cycles are confined to major metros because they are very expensive, industry experts said. E-cycles in India were launched about three years ago. Its major manufacturers include Ludhiana-based Hero Group, Ahmedabad-based Lightspeed Mobility Pvt Ltd and Coimbatore-based Hulikkal Electro India Pvt Ltd. Actor Salman Khan has recently launched environment-friendly ‘Being Human’ e-cycles.

The majority of its parts are imported, hence costly. These cycles are sold between Rs 30,000-Rs 60,000 per unit. The two models launched by Salman Khan are available in market for around Rs 43,000 and Rs 60,000.

Experts say that the ‘power train’ — a major component of the e-cycle — is the costliest part of the cycle that contributes about 60 per cent of its total input cost.

“The market for e-cycles is restricted to individuals only with no institutional sales. The high acquisition cost is the main deterrent to the buyers,” SMEV Director General Sohinder Gill said.

Currently, the market for electric bicycles lies primarily in the urban areas especially in southern and western parts where the manufacturers see more affordability and awareness for electric vehicles, spokesperson for Hulikkal Electro India said.

"The only advantage is that these vehicles do not require registration numbers, insurance and driving licence,” said Maninder Singh, a Ludhiana-based prospective buyer of the e-cycle.

Hero Group, the world’s biggest cycle manufacturer, is investing Rs 250 crore to set up a facility for e-bike for which the Punjab Government is ready to allocate 100 acres. Hero plans to launch electric bicycles for 10 segments. “Globally, the e-bike market is set to touch $21.3 billion by 2023 and there is every sign of e-bike culture growing in India too,” Hero Motors Company Chairman Pankaj M Munjal said.

However, on the other hand electric two-wheeler sales in the country picked up well. The increase in sales is attributed to improved technology and dwindling cost of lithium ion batteries, a major component in the vehicle that contributes almost 40 per cent of the total acquisition cost. The sale of electric two-wheelers in the country clocked the largest ever volume in 2010-11, when it touched 90,000 units. After registering a historic high, it dwindled to 20,000 units. However, the industry heaved a sigh of relief in 2017-18 when the sales touched 55,000-unit mark.

3,600 units* is the annual sale of e-cycles in the country 

Rs 30,000-60,000 per unit is the price range of the eco-friendly vehicle

100 acre is likley to be allotted to Hero Group by Punjab Govt for an e-bike facility

*SMEV estimate