Industry Odisha Bureau, Aug 18: In a bid to build sustainable revenue growth and recurring profits, the Indian electric two-wheeler (e2W) makers are reportedly shifting to technology-driven product features, service ecosystems and cost-efficiency.
Media reports, citing market experts, have stated that, “India’s e2W market has been projected to cross 2 million annual sales in 2026. Since competition is intensifiying, e2W manufacturers are localising production, cutting costs, and adding tech features to justify higher margins. Besides, service revenue, software updates, and premiumised product lines are becoming key revenue drivers alongside hardware sales. The tech features are aimed at attracting premium segments and improving brand differentiation.”
Elucidating on the market context and strategic shift, media reports have stated that, “Ather Energy is claimed to be the first listed new-age Indian e2W maker to post a positive Ebitba, i.e. 0.8% in Q2 FY27, with revenue up 87% YoY to Rs 1,260 crore. The company has been investing heavily, i.e. Rs 448 crore in FY26, into Research and Development (R&D) to develop new vehicle platforms, battery technology, electronics, software and charging solutions. Features like advanced battery management, connected technology, and new platforms (EL, Zenith) are central to its strategy, aiming to differentiate its portfolio and improve unit economics.”
Similarly, media reports have added that, “TVS Motor’s Rs 1,254 crore R&D outlay in FY26 reflects its ‘R&D First’ approach, while Hero MotoCorp’s Rs 1,129 crore investment supports its connected platforms and low-emission powertrains. Baja Auto is also boosting its R&D spend to add premium features, like ride-by-wire, traction control, customisable riding modes, to its e2Ws. Ola Electric also targets Rs 400-500 crore in service revenue by FY28 tripling from Rs 130 crore in FY26.”
