India's two-wheeler ecosystem serves as the lifeblood of daily mobility, transporting an astonishing 137 million citizens each day. Recent data from TechUp 3.0, analyzing 137,787 Aera rides covering 2.1 million kilometers, reveals that electric two-wheelers have decisively moved beyond experimental status. These vehicles now deliver impressive 0–60 acceleration in just 4.2 seconds, offer a practical range of 182 kilometers, and generate annual savings of approximately ₹65,000 per rider. As Union Budget 2026 approaches, India stands at a critical juncture to transform this engineering success into sustained manufacturing leadership.
Sustaining Adoption Through Policy Continuity
One of the most pressing expectations from the upcoming Budget is the continuation of PM E-DRIVE incentives at meaningful levels specifically for electric motorcycles. Achieving parity with other electric vehicle segments remains essential to maintain consumer confidence and market stability. Historical evidence demonstrates that incentives prove most effective when they remain predictable and consistent. When policies maintain stability, demand naturally builds momentum over time.
For consumers, the fundamental question remains straightforward: Will electric motorcycles continue to deliver value as the category expands? Policy continuity provides the clarity needed to answer this question affirmatively.
Reassessing Price Caps for Quality Innovation
There exists an urgent need to reevaluate the ₹1.5 lakh ex-factory price cap currently implemented under PM E-DRIVE. Material costs have escalated significantly, while consumer expectations regarding performance, safety standards, and durability have evolved substantially. The existing cap inadvertently disadvantages high-quality, domestically manufactured electric motorcycles that invest in superior engineering and innovation. If India's objective is long-term adoption and technological advancement, policy frameworks must reward quality and innovation rather than restrict them.
Building India as a Global EV Manufacturing Hub
India's manufacturing initiative now requires its next evolutionary phase. A more inclusive PLI 2.0 framework that actively supports startups and innovation-driven original equipment manufacturers could create transformative impact. Startups represent the frontier where new vehicle architectures, accelerated engineering cycles, and breakthrough systems are being developed—from advanced geared electric drivetrains to sophisticated liquid-cooled thermal management solutions.
Global competitiveness in the electric vehicle sector will not emerge from scale alone. It equally depends on product depth and engineering originality. Strengthening component localization and enhancing supplier capabilities prove critical to building a resilient, self-reliant EV ecosystem that can compete internationally.
Making Research and Development a Budget Priority
If India aspires to transcend its role as merely a manufacturing base and emerge as a genuine global EV hub, research and development must occupy center stage in budgetary planning. Structured incentives, targeted grants, and long-term programs can encourage companies to invest in deep technology development rather than short-term optimization strategies.
The Era of AI-Defined Vehicles
The next phase of mobility will be defined by software integration and artificial intelligence. Electric vehicles already demonstrate significantly greater digital integration compared to internal combustion vehicles. We are now transitioning into an era of AI-defined vehicles, where intelligence becomes embedded into how vehicles are designed, operated, and continuously improved throughout their lifecycle.
AI-defined vehicles enable continuous software upgrades, smarter energy management systems, enhanced safety outcomes, and better adaptation to real-world riding conditions. These intelligent systems learn from terrain variations, traffic patterns, and individual rider behavior, progressively improving reliability while reducing long-term ownership costs.
This technological evolution proves particularly relevant in India, where riding conditions remain unpredictable and rarely resemble controlled test environments. TechUp 3.0 data reveals that by the second month of ownership, riders improve their effective range by nearly 25 percent simply by refining technique through regenerative braking, smoother acceleration patterns, and disciplined riding modes. Software-led learning directly translates into superior performance on India's diverse road networks.
Advancing Rare Earth-Free Technologies
Research and development support should also extend to rare earth-free motor technologies. Global dependence on rare earth magnets continues to represent a strategic vulnerability for electric vehicle manufacturing. Promising alternatives such as iron nitride-based magnets offer a viable pathway toward reduced import dependence and greater cost stability for domestic EV manufacturers.
Targeted investment across artificial intelligence, advanced electronics, and rare earth-free technologies would position India for global leadership rather than perpetual catch-up in the evolving EV landscape.
Removing Critical Infrastructure Bottlenecks
Charging infrastructure remains one of the most significant enablers of broader electric vehicle adoption. Budget 2026 should prioritize accelerated charging deployment, with particular emphasis on Tier II and Tier III cities. For electric two-wheelers, the visibility and reliability of charging stations matter as much as raw range specifications. Expanding infrastructure networks, alongside grid readiness enhancements and supportive regulations, will substantially reduce range anxiety while unlocking broader geographic adoption.
EV Innovation as a Pillar of Viksit Bharat
India possesses a unique opportunity to establish global leadership in electric two-wheeler mobility. Sustained demand-side incentives under PM E-DRIVE, realistic pricing thresholds, an inclusive PLI framework, and stronger research and development support for AI-defined vehicles can collectively shape the next phase of growth.
With strategic policy choices, electric two-wheelers can become India's most successful clean mobility narrative—one that benefits consumers, strengthens domestic manufacturing capabilities, creates skilled employment opportunities, improves urban air quality, and contributes meaningfully to the vision of Viksit Bharat 2047, built in India for the world.
