E2W Market to Surge 16-18% Next Fiscal Year as Supply Chains Stabilize: CRISIL

• India's electric two-wheeler (E2W) market is projected to grow by 16-18% in the next fiscal year, according to CRISIL Ratings.
• This growth follows a moderation to 12-13% in the current fiscal year, primarily due to disruptions in rare-earth magnet supply and tax policy changes.
• E2Ws maintain a strong ownership-cost advantage, with running costs at ₹0.3/km compared to ₹2.0-2.5/km for ICE vehicles, despite tapering subsidies.
• The recovery is driven by easing rare-earth magnet supplies from China and manufacturers diversifying their sourcing.
• E2Ws are expected to comprise 7% of total two-wheeler volumes next fiscal year, with legacy players increasing market share to 62% by January 2026.