HomeEV 2 WheelersE-scooter launch: startups outpace legacy auto companies

E-scooter launch: startups outpace legacy auto companies

Rapid changes are taking place in the automobile sector, spurred on by the popularity of EVs and the increasing need for environmentally friendly transportation options. As electric scooters are colloquially known, E-scooters are a novel kind of personal transportation thathas quickly gained popularity among city dwellers who value affordability and environmental friendliness.

A fascinating development has emerged in the e-scooter business in recent years: newcompanies are rapidly overtaking established ones. This article delves into the phenomenaof nimble startups outperforming traditional automakers and the variables that have contributed to their success.

Startups Outpace Legacy Auto Companies

In the past few years, significant upheaval and innovation have occurred in the e-scooter
sector. While big automakers have concentrated on mass-producing conventional
automobiles, startups have jumped at the chance to develop environmentally friendly and efficient designs for electric scooters.
Lightweight, compact, and technologically advanced e-scooters that meet the needs of
urban commuters are the product of these firms’ quick thinking and unique viewpoints.
These new businesses have caught the eye of today’s consumers by incorporating digital
elements, smart functionality, and eco-friendly style.

● Agility and Adaptability:

One significant benefit of newer automotive companies over their more established
counterparts is their greater agility and adaptability. Startups can quickly adapt to shifting
market conditions and client tastes because cumbersome organizational structures or outdated technologies do not constrain them. Because of this adaptability, they can rapidly offer new models, respond to client input, and refine their designs. However, conventional automakers need help responding to market shifts and adjusting production accordingly due to the complexity of their supply chains and production procedures.

● Tailored needs:

Startups in the e-scooter industry have also shown great success in localizing and tailoring their products to meet the needs and tastes of individual communities. These new companies may tailor their e-scooters to meet the specific demands of individual towns and
regions if they take the time to learn about these areas. They can, for instance, design e-scooters with improved maneuverability for crowded urban settings or create models with bigger battery capacities for places with limited charging infrastructure. By focusing on specific regions, entrepreneurs can better understand consumer needs and provide solutions that resonate with them.

● Reliable Infrastructure:

The e-scooter sector’s growth largely depends on the resources invested in creating a reliable charging infrastructure. In response to this issue, startups have begun working with municipalities, businesses, and neighborhoods to set up charging infrastructure.
Startups make their e-scooters widely available and handy for long-distance travel by
investing in charging stations at key locations across cities. However, traditional automakers
need help adapting their existing infrastructure to support electric vehicle charging, limiting
their capacity to compete. Startups bring a new way. Startups in the e-scooter industry have also done an excellent job developing distinctive brand identities and exciting marketing strategies. These companies have found success by appealing to customers concerned about the environment and looking for transportation alternatives by promoting themselves as innovative, eco-friendly, and community-focused. They’ve successfully utilized social media, influencer marketing, and in-person events to expand their consumer base and generate buzz around their brand. However, established automakers like Ford and General Motors have a harder time breaking through to
customers’ hearts because of the negative connotations of internal combustion engines.

  • Manufacturers’ new incentives can affect the average weighted retail price of cars. OEM profits are directly correlated with this factor.● OEMs can increase their price and profitability by including more high-end features and investing in brand-building efforts.
  • Given the additional causes of the price hike listed below:
  • Demand is rising: There is a surge in demand for high-end automobiles in India. A burgeoning urban population, higher wages, and an expanding middle class contribute to this expansion.
  • As the price of raw materials, labour, and transportation have increased over the past
    few years, so has the price of producing high-end automobiles.
  • Luxury vehicles in India are expensive because of the high taxes levied by the
  • The rising cost of imported luxury vehicles in India directly results from the decline of the rupee over the past few years.

Some notable startups with significant financial backing from prominent investors include
Ather Energy and Tork Motors. For instance, Sachin Bansal and Binny Bansal, the creators
of Flipkart, along with Innoven Capital and Tiger Global and Hero MotoCorp Ltd., India’s largest two-wheeler manufacturer, have invested in Ather. Meanwhile, Bharat Forge Ltd, Ola
founder Bhavish Aggarwal, and Ratan Tata have invested in Tork Motors.

Some promising figures in EV startups

About a dozen companies are just getting started in electric mobility, and they all have different funding levels. Large companies like Bajaj Auto Ltd and TVS Motor Co. Ltd are only beginning to enter the market. Only about half a dozen or so startups are expected to last the long haul. Still, their technological agility and speed at developing tools for new goods
should allow them to stay ahead of the curve in electrifying transportation.

In FY19, the domestic EV sector produced 129,600 units, comprising 126,000 electric two-
wheelers and 3,600 electric four-wheelers, as the Society of Manufacturers of Electric
Vehicles (SMEV) reported. When compared to FY18, sales of electric vehicles increased from 54,800 to 1,200 for electric two-wheelers and four-wheelers, respectively. On the other hand, it is predicted that over 600,000 units will be sold in the unregulated and China- dominated electric three-wheeler market in 2018-2019.

The government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
(FAME 2) scheme, funded at a level of 10,000 crores between FY20 and FY22, provides
incentives for the purchase of electric two- and three-wheelers, e-buses, and four-wheelers
with just commercial registration. To further encourage the use of EVs, the Indian government exempts the interest on financed purchases and charges a 5% GST for electric

Opportunities in EV Sector

The electric mobility ecosystem has three main opportunities: product production, EV
charging infrastructure, and services. As new business models arise in electric mobility,
startups are developing products and services for each of the three opportunities.

  • Ather Energy, for instance, is a manufacturer and developer of its goods and a provider of the grid and consumer services, such as over-the-air software upgrades
    and novel forms of ownership, including subscription and leasing.

As Tork Motors prepares to release T6X, it develops new ownership models, such as
leasing and installing fast-charging infrastructure in Pune.

  • TVS Motor, which aims to launch its iQube electric scooter in Bengaluru, will
    compete with Bajaj Auto, providing EV charging connections free of charge to
    customers who purchase its first electric scooter, the Chetak. Neither firm, however,
    has announced any updated ownership options for its electric scooters as of yet.
    On the other hand, Tata Motors Ltd informed potential buyers of its Nexon electric
    compact sport utility vehicle that it would provide subscription and lease options
    beginning January 28.


Traditional automakers need to gain ground to upstarts in the e-scooter industry. These new
companies have a leg up on the competition thanks to a potent cocktail of factors, including disruptive innovation, adaptability, localization, investment in charging infrastructure, and savvy branding.

Established automakers must adopt a more agile strategy and invest in electric mobility
solutions to compete in the ever-changing urban mobility market. To thrive in the future of
electric transportation, established automakers can learn from the experiences of e-scooter



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

EV Store