India's EV Scooter Race Heats Up: Global Giants Enter

India's electric scooter market is witnessing intense competition as quick commerce and delivery services drive demand. Manufacturers are increasingly targeting this lucrative segment. Vietnam's VinFast is exploring fleet deployments, having already established battery-swapping stations in the National Capital Region and committing over $500 million to its Indian operations, extending beyond cars to two-wheelers and buses.

Domestically, Bajaj Auto, India's fourth-largest two-wheeler maker, has highlighted the burgeoning segment in its annual report. Through its partnership and 18% stake in Yulu Bikes, which deploys electric two-wheelers and achieved EBITDA profitability in FY26, Bajaj is actively involved. Yulu plans significant fleet expansion.

Ola Electric's chairman noted a surge in demand for its electric scooters from the gig economy due to rising fuel costs. The company is reportedly exploring more business-to-business sales, including for bike taxi and delivery fleets, to boost sales volumes. This comes as Ola Electric seeks to regain its leading position in the market.

The market distinguishes between slow-speed scooters, ideal for quick commerce deliveries and not requiring registration, and high-speed scooters suitable for bike taxis and food delivery. Experts suggest that as the commercial fleet space grows, more large automobile manufacturers may expand their presence, mirroring the expansion seen in online food delivery and bike taxi markets.