Electric Two-Wheeler Production Set to Double in India Amid Rising Fuel Prices and Surging Demand

Driven by global fuel shortages and shifting consumer preferences, major Indian electric two-wheeler manufacturers are doubling production capacities to meet an unprecedented 61 percent year-over-year surge in domestic demand

MUMBAI | May 25, 2026 : The ongoing geopolitical conflict involving the United States, Israel, and Iran has triggered widespread fuel shortages, accelerating a massive consumer shift toward electric mobility in India. In response, leading electric two-wheeler manufacturers, including TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp, are gearing up to nearly double their production capacities. Industry projections indicate an output increase of at least 150,000 vehicles this year, with manufacturers targeting an ambitious milestone of producing over two million electric bikes annually by next year.

This production ramp-up comes as a direct consequence of a severe demand-supply mismatch. Surging consumer interest has outpaced existing manufacturing capabilities, leaving customers facing waiting periods of three to four months after booking their vehicles. In March 2026 alone, demand for electric two-wheelers grew by 9.8 percent, culminating in the sale of approximately 191,000 units a staggering 61 percent increase compared to the previous year. Although minor labor shortages marginally impacted overall factory output by 5 percent, companies are aggressively restructuring their assembly operations to minimize delays.

Market leaders are spearheading this expansion with substantial volume targets. TVS Motor recorded over 40,000 electric vehicle sales in March, registering a 33 percent annual growth rate, and plans to boost its production capacity by an additional 50,000 units. Similarly, Bajaj Auto has experienced an overwhelming market response to its newly launched Chetak electric scooter line, crossing the 100,000 sales threshold in March. To sustain this momentum, Bajaj Auto has set a rigorous target to manufacture 50,000 electric two-wheelers every month, underscoring the rapid transformation of the Indian automotive landscape.

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