Adoption of Electric Scooters Providing a Perfect Mobility Solution for Smart Cities
Electric vehicles are revolutionizing the automobile industry in recent years as well as it is disrupting the way people used to travel by public and private transport. It has been seen that to avoid the growing traffic congestion and issues regarding parking, people have started to prefer scooters instead of four-wheeler for daily local transportation.
On the other side, many governments are planning to establish smart cities to ease people’s lives. Mobility is one of the major concerns of the smart city framework. And, the planning of the smart city focuses on eco-friendly and sustainable options. So, the need of reducing air pollution and carbon emissions has forced governments and other administrations to implement multiple initiatives. Development, manufacturing and promotions of electric scooters are also some parts of these initiatives.
Apart from the concerns regarding environmental safety and government initiative, the industry is experiencing continuous research and developments to provide multiple options of innovative scooters. Because of these R&D, needs and adoptions, the global electric scooters market is witnessing remarkable growth.
Currently, eccity motorcycles, Gogoro Inc., GOVECS AG, Honda Motor Company, and Jiangsu Xinri E-Vehicle Co., Ltd are some of the main companies that are dominating the electric scooter market. It has been seen that to expand the business, some companies are performing organic strategic activities such as acquisitions, partnerships and collaborations.
For instance, on May 27, 2020, Ola Electric Mobility Pvt Ltd announced the acquisition of Etergo BV, an electric scooter OEM, based out of Amsterdam. With this acquisition, Ola Electric announced its entry into the premium electric two-wheeler market globally as well as nationally.
On this occasion, Bhavish Aggarwal, Founder and Chairman, Ola Electric expressed, “The future of mobility is electric, and the post COVID world presents an opportunity for us to accelerate the adoption of electric mobility globally. Every year, almost twice the number of two-wheelers are sold across the world compared to cars. With electric, digitally connected capabilities, two-wheelers will further emerge as the most preferred urban mobility paradigm around the world and empower every consumer. We look forward to building the best global capabilities in engineering, design, and manufacturing for these products to be made here in India.”
Also, some companies are focusing on organic strategies like scooter launches, approvals, patents and event to attract the customers.
On January 25, 2020, TVS Motor Company announced the launch of the scooter TVS iQube Electric in Bengaluru. On the launch. Venu Srinivasan, Chairman, TVS Motor Company, Commented, "TVS Motor is driven by Customer Centric Innovation. As India moves ahead, its mobility solutions would increasingly be total experience-led, nowhere is this felt sharper than among the youth of India. Our focus on the ‘Green & Connected’ youth of India, is embodied, in the first of the TVS Electric portfolio. TVS iQube Electric is a blend of an advanced electric drivetrain and the next gen TVS SmartXonnect platform".
As per the research report by The Insight Partners, these activities are paving the way for the expansion of business and customer base of market players.
On the other side, some countries have complex regulations regarding vehicle speed and consumer’s still focus on vehicle’s performance instead of fuel efficiency may hamper the growth of the electric scooter market. Plus, in some developing countries, consumers are not able to afford electric scooter as there are costly than conventional options. So, industry analysts state that these reasons may hamper the growth of electric scooter market.
Impact of Coronavirus Pandemic on Electric Scooter Market
As we have observed that Covid-19 has affected many industries. Its major impact has happened on the transportation and travelling industry. Many employees are losing jobs or receiving less salaries in this crisis. When they will start to go to office or perform regular outdoor activities, they will try to avoid public transport for safety reasons. So, people will prefer to travel by own vehicle. As compare to four-wheeler, two-wheelers are considered as time saving and pocket-friendly mobility option for local commute. As an immediate solution, customers will choose to own two-wheeler instead of four wheeler. So, experts predict that this pandemic may become an opportunity for electric scooter manufacturing companies to create a brand name in the industry.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.