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2W EVs and 5 Forces
- Ola leads the 2W EV market with a 35% market share, with Bajaj Auto showing high YoY growth at 105%.
- Operating margins in the 2W EV industry range from 8-12%, with major players facing intense competition.
- Battery packs constitute a significant cost in EV production, with India importing cells from China and South Korea.
- New-age EV manufacturers are vertically integrated, reducing reliance on outsourcing for components like battery packs.
- The Indian government's subsidies like FAME II aim to boost EV adoption, with a focus now shifting to battery-cell manufacturing.
- An analysis of the 2W EV industry through Porter's Five Forces highlights high barriers to entry and strong competition.
- EVs face threats from ICE vehicles in rural markets due to infrastructure and cost advantages.
- Bargaining power of customers is influenced by pricing and service factors, impacting the sales of 2W EVs.
- Suppliers in the EV industry, particularly battery cell suppliers, hold bargaining power due to concentration and demand premium pricing.
- The industry sees high competition with legacy players and startups vying for market share through price wars and innovation.
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