Narrowing the price gap between internal combustion engine equipped two-wheelers and their electric variant, can accelerate electrification of urban focused scooters, said Motilal Oswal Financial Services Ltd. (MOFSL).
Accordingly, MOFSL in a report cited that cost of ownership due to regulatory factors, rising fuel prices, reduction in Lithium-ion battery prices, and Faster Adoption and Manufacturing of Electric vehicles (FAME)-2 or state government subsidies are factors resulting in narrowing of the price gap.
“Mainstream Original Equipment Manufacturers (OEMs) have finally entered the e-scooter segment, which was so far dominated by startups,” the report said. “We believe that e-Two-Wheelers (2Ws) are ready for disruption, particularly urban focused scooters are at risk of faster electrification.”
