Kerala rushes ahead in E2W adoption: Education dividend likely

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Kerala that is known for some of the basic human development indicators such as literacy rate, education and life expectancy, is fast emerging as the leading state for electric two-wheeler (e2W) adoption, surging ahead of industry majors such as Maharashtra, Tamil Nadu, Gujarat and Tamil Nadu.

The Business Standard has reported quoting a report by J M Financial that Kerala has e2Ws constituting 12.2% of the total two-wheeler population inn the state, which is the highest among all states.

This is considerably higher than 10.6% in Karnataka, which is in the second spot. Other states are far behind – Maharashtra has 9.5%, Gujarat with 6.9% and Tamil Nadu with 5.2%. Even Delhi has a 9.1% penetration of electric two-wheelers.

Moreover, Kerala is the only state in the country that comes close to NITI Aayog’s target of achieving 13-15% of e2W penetration by 2025-26.

The share was lagging at 4.4% in 2022-23 in the country and it is now slightly higher at 5% Kerala’s achievement stands out on another count. Its residents have taken enthusiastically to this non-polluting mode of travel despite having far fewer charging points compared to peer states. While Kerala has a mere 192 charging stations, those in other states are the following – Delhi has 1,845, Karnataka has 704 while Maharashtra has 660.

Incidentally, four brands – Ola Electric, Ather Energy, TVS Motor Company and Bajaj Auto – account for about 80% of the e2W market in India.

Experts think a few factors have favoured the higher e2W adoption in Kerala despite constraints and the most significant factor can be the education dividend. Customer awareness, a high NRI population, the presence of government incentives and the propensity to adapt to new products and brands accounted for Kerala’s success in this field.

“The state has embraced EVs for their environmental benefits, which align with its dedication to sustainability. Additionally, government incentives and policies promoting clean mobility and rising fuel costs have fuelled widespread EV acceptance,” said Sanjay Behl, CEO and executive director, Greaves Electric Mobility, which sells the popular brand Ampere EV.

“Whenever there is a new product in the market, Kerala is quick to embrace it, because of awareness and education. The strong NRI population is aware of changes. Road tax is as low as 5% for EVs in the state. Moreover, fuel prices here are higher compared to other states,” says Sabu Johny, MD of EVM Motors, which runs a dealership network of EVs.