India EV 2W Rental Market Outlook to 2030

The report titled “India EV 2W Rental Market Outlook to 2030 – By Market Structure (Organized vs Unorganized), By Type of EVs (E-Scooters vs E-Motorcycles), By Duration of Rental (Short-term vs Long-term), By End-Users (B2B vs B2C), and By Region” provides a comprehensive analysis of the electric two-wheeler rental market in India. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation, key trends and developments, regulatory landscape, user behavior, issues and challenges, and competitive landscape including market dynamics, cross comparisons, growth opportunities, and bottlenecks. It also includes profiles of key companies in the EV 2W rental segment. The report concludes with future market projections based on revenue, volume, type of service, end-user segments, regional demand, and success case studies highlighting major opportunities and risks in the sector.

India EV 2W Rental Market Overview and Size

The India EV 2W rental market reached a valuation of INR 950 Crore in 2024, driven by increasing urban congestion, rising fuel costs, and the growing awareness of sustainable transport solutions. The market is led by players like Bounce Infinity, Yulu, Zypp Electric, Vogo, and eBikeGo, who provide flexible rental models via mobile applications and localized charging infrastructure. These companies offer both docked and dockless rental services with operations concentrated in major metropolitan areas like Bengaluru, Delhi NCR, Mumbai, and Hyderabad.

In 2024, Yulu partnered with key metro and railway operators to provide first- and last-mile electric mobility solutions across urban transit points. These partnerships aim to integrate EV 2Ws into India’s multi-modal transportation ecosystem.

Market Size for India EV 2W Rental Industry on the Basis of Volume (Number of Rentals), 2018–2024

(Values in Millions)

Source: TraceData Research Analysis

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What Factors are Leading to the Growth of India EV 2W Rental Market

• Urban Congestion & Last-Mile Connectivity: India's metro cities face severe congestion and limited parking availability. EV 2W rentals offer a compact and efficient solution for short-distance commutes, particularly in Tier 1 and Tier 2 cities. In 2024, around 30% of EV 2W rentals in Delhi were used for first- and last-mile metro connectivity.

• Rising Fuel Prices and Cost Advantage: With petrol prices averaging INR 100+ per liter in major cities, EV rentals provide an economical alternative. Users save approximately 30-40% in commuting costs using rented EVs compared to ICE (Internal Combustion Engine) vehicles.

• Government Incentives & Infrastructure Push: Policies under FAME-II, along with state-level subsidies and low-interest EV financing, have made EVs more viable for fleet operators. Cities like Bengaluru and Pune have also introduced dedicated EV zones and battery swapping hubs to support short-duration rentals.

Which Industry Challenges Have Impacted the Growth for India EV 2W Rental Market

• Infrastructure Gaps & Battery Swapping Limitations: Inconsistent availability of charging infrastructure and limited battery-swapping stations continue to hinder growth, particularly in Tier 2 and Tier 3 cities. As of 2024, less than 25% of the EV 2W rental fleet had access to reliable public charging or swapping infrastructure, resulting in downtime and reduced service reliability.

• High Vehicle Downtime & Maintenance Costs: While EVs have fewer moving parts than ICE vehicles, components such as batteries and controllers are expensive to replace or repair. According to industry interviews, approximately 18% of fleet vehicles remain out of service at any given time due to maintenance, affecting fleet utilization and profitability for rental operators.

• Low User Awareness & Behavioral Resistance: Despite rising adoption in metros, many users remain hesitant due to lack of familiarity with EV technology, range anxiety, and perceived inconvenience. A 2024 urban mobility survey showed that 42% of prospective users had concerns about range and charging time, leading to lower repeat usage.

What are the Regulations and Initiatives Which Have Governed the Market

• FAME-II and State EV Policies: The central government's FAME-II scheme provides purchase incentives of up to INR 15,000 per EV 2W, specifically benefiting fleet operators and rental companies. Additionally, states like Delhi, Maharashtra, and Tamil Nadu offer subsidies, registration fee waivers, and interest subvention on loans. In 2024, these policies supported the deployment of over 1.2 lakh EV 2Ws for shared mobility purposes.

• Battery Swapping Guidelines (2023): The Ministry of Power issued battery-swapping guidelines to encourage interoperability, standardized connector types, and open access to charging data. These are critical for scaling rental operations based on swappable battery infrastructure. Early adopters like Bounce and Yulu have aligned their fleet configurations to these norms.

• Urban Mobility Integration Initiatives: Several Smart City programs and Metro Rail corporations have partnered with EV 2W rental firms to establish EV docking hubs at high-footfall locations. In Bengaluru, for instance, Yulu's Micro mobility Zones at metro stations led to a 22% increase in last-mile ridership for EVs in 2023–24.

India EV 2W Rental Market Segmentation

• By Market Structure: The market is divided into organized and unorganized segments. Organized players such as Yulu, Bounce Infinity, Zypp Electric, and Vogo dominate the landscape due to their robust mobile platforms, operational transparency, and partnerships with government bodies and private sector companies. These players focus on fleet management, charging infrastructure, and seamless customer experiences. Unorganized players, on the other hand, consist mainly of local operators who offer informal, low-cost services, often with limited fleets and less standardized operations, but they remain significant in areas with fewer organized operators.

• By Type of EVs (E-Scooters vs E-Motorcycles): E-scooters make up the bulk of the EV 2W rental fleet due to their lower upfront costs, ease of handling, and growing demand for short-distance urban commutes. E-motorcycles, though less common, are expected to gain traction in the delivery and logistics sectors, where higher range and load capacity are required. These motorcycles often cater to business-to-business (B2B) use cases, such as delivery fleets and rental services for long-distance commuters.

• By Duration of Rental (Short-term vs Long-term): Short-term rentals, typically ranging from hourly to daily rentals, account for a larger share due to the increasing demand for last-mile connectivity and flexible usage for city commuting. Long-term rentals, typically in the form of monthly or yearly contracts, cater to consumers looking for a more affordable, sustainable, and eco-friendly alternative to owning a vehicle. Long-term rentals are particularly favored by employees, delivery personnel, and fleet operators seeking fixed operational costs.

Market Segmentation for India EV 2W Rental Market Basis Organized and Unorganized on the Basis of Volume Sales in Percentage, 2024

Source: TraceData Research Analysis
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The above percentage share is for representation. Actual numbers will differ in the final report.

Market Segmentation for India EV 2W Rental Market Basis E-Scooters and E-Motorcycles on the Basis of Volume Sales in Percentage, 2024

Source: TraceData Research Analysis
(Graph Placeholder)

The above percentage share is for representation. Actual numbers will differ in the final report.

Competitive Landscape in India EV 2W Rental Market

The India EV 2W rental market is relatively fragmented, with several major players leading the space, alongside new entrants and the expansion of online and app-based platforms. Players like Yulu, Bounce Infinity, Zypp Electric, Vogo, and eBikeGo have been key drivers of growth, while new players, especially in the delivery and e-commerce sectors, have increasingly adopted electric two-wheelers for last-mile connectivity.

Some of the recent competitor trends and key information about competitors include:

• Yulu: As one of the leading EV 2W rental companies in India, Yulu recorded a 35% increase in rentals in 2023. The company has expanded its fleet to over 25,000 vehicles, with a strong presence in Delhi NCR, Bengaluru, and Pune. Yulu also partnered with Metro Rail Corporations to integrate EV rentals for first- and last-mile connectivity, making it a key player in urban mobility.

• Bounce Infinity: Bounce Infinity has focused on expanding its long-term rental model, catering to both B2C and B2B customers. In 2023, the company saw a 20% growth in demand from delivery logistics companies, driven by rising fuel costs and a need for sustainable solutions. Its introduction of battery-swapping stations has made its services more accessible to users in Bengaluru and Hyderabad.

• Zypp Electric: Zypp Electric, focusing primarily on the e-commerce and logistics sectors, has grown its fleet by 40% in the last year. The company’s focus on providing EV 2Ws for last-mile deliveries has been crucial in supporting major players like Zomato and Swiggy. In 2023, Zypp Electric reported a 25% increase in fleet utilization through partnerships with delivery companies.

• Vogo: Vogo’s growth has been driven by its hybrid fleet model that offers both electric and petrol scooters. The company recorded a 30% increase in demand for long-term rentals in 2023, mainly from professionals and corporate sectors seeking eco-friendly transportation options. Vogo’s real-time tracking and fleet management app has improved its customer retention rates.

• eBikeGo: eBikeGo is focusing on providing affordable and reliable electric 2Ws for urban commutes and short-distance travel. With over 20,000 EV 2Ws in its fleet, the company reported a 22% increase in rentals in 2023, particularly for hourly rentals in high-density areas. The company is actively expanding its charging network to improve service reliability.

What Lies Ahead for India EV 2W Rental Market?

The India EV 2W rental market is projected to experience substantial growth through 2030, with a strong CAGR driven by shifting consumer preferences, governmental support for electric vehicles (EVs), and the need for sustainable urban mobility solutions.

• Shift Towards Electric Vehicles in Shared Mobility: As India increasingly embraces electric mobility, there will be a significant rise in the demand for electric 2Ws for both personal and commercial use. This growth is expected to be bolstered by state and central government initiatives such as FAME-II, which incentivize electric vehicle adoption. Moreover, the market will see a gradual shift from internal combustion engine (ICE) vehicles to EVs in rental fleets, driven by fuel price volatility and environmental concerns.

• Integration of Smart Technology and IoT in Fleet Management: The integration of advanced technologies such as Internet of Things (IoT), AI, and big data analytics will revolutionize the fleet management of EV 2Ws. This will enable rental operators to improve fleet utilization, track vehicle performance in real-time, and enhance customer service. Such innovations will also help optimize charging schedules, reduce operational costs, and ensure higher reliability in rentals. By 2025, 70% of all EV 2Ws in major cities are expected to be connected through IoT systems.

• Rise of B2B Rentals for Logistics and Delivery: With the expansion of e-commerce and food delivery services in India, the demand for B2B EV 2W rentals will continue to rise, especially for last-mile delivery services. Companies like Zomato, Swiggy, and Bigbasket are already leveraging electric two-wheelers in their fleets, and this trend is expected to expand across mid-sized cities and tier 2 towns, where EVs are being adopted for their low operating costs.

• Increasing Role of Battery Swapping Infrastructure: The establishment of battery swapping stations is expected to alleviate concerns about range anxiety and long charging times. By 2025, 50% of EV 2W rental fleets in major cities are projected to operate on a battery-swapping model, making rentals more accessible and convenient for consumers. State governments are also expected to collaborate with private sector players to create a robust network of swapping stations, further supporting this trend.

India EV 2W Rental Market Segmentation

• By Market Structure:

  • Organized Sector

  • Unorganized Sector

  • OEM Certified Fleets

  • Third-Party Rental Platforms

  • Ride-Sharing & Delivery Fleets

  • Long-Term Rentals

  • Short-Term Rentals

• By Type of EVs:

  • E-Scooters

  • E-Motorcycles

  • Cargo & Delivery EVs

• By Rental Duration:

  • Short-Term Rentals (<1 day)

  • Medium-Term Rentals (1 week - 1 month)

  • Long-Term Rentals (>1 month)

• By End-User:

  • B2C (Business to Consumer)

    • Urban Commuters

    • Tourists & Travelers

  • B2B (Business to Business)

    • Delivery & E-commerce Fleets

    • Corporate Mobility Solutions

    • Logistics & Transportation Providers

• By Region:

  • Northern India

  • Southern India

  • Western India

  • Eastern India

  • Central India

Players Mentioned in the Report:

• Yulu

• Bounce Infinity

• Zypp Electric

• Vogo

• eBikeGo

• Ola Electric (EV Fleet)

• Revolt Motors (Rental Initiatives)

Key Target Audience:

• EV Rental Operators

• Delivery & Logistics Companies

• Fleet Management & Maintenance Providers

• Government Bodies (e.g., Ministry of Heavy Industries and Public Enterprises)

• EV Battery and Charging Infrastructure Providers

• E-commerce & Last-Mile Delivery Players

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2030