A well-structured push towards electric bicycles will not only reduce dependence on fossil fuels but also create a more inclusive and resilient transportation ecosystem for millions of Indians
As India moves towards a sustainable future, electric bicycles are emerging as a game-changer in the country’s mobility landscape. With a unique blend of affordability, efficiency, and sustainability, electric bicycles offer an ideal solution for the transportation challenges faced by rural populations, especially women, delivery workers, postal employees, and urban commuters. Given their low battery capacity, frugal design, and zero emissions, electric bicycles are well-suited for India’s dense urban areas and remote rural regions.
As we approach the Union Budget 2025, it is crucial to focus on policies that promote the adoption of electric bicycles as a preferred mode of transport. Strategic investments in electric bicycles can drive economic empowerment, reduce congestion, and provide last-mile connectivity while aligning with India’s net-zero ambitions.
Fig 1: G20 Sherpa Amitabh Kant, Advisor, Niti Aayog Sudhendu Sinha along with AOKI Mobility Founder Randheer Singh during the launch of their e-bycycles at the recently concluded Bharat Mobility Global Expo 2025 in New Delhi. Pic by Tuhin Dutta
The Role of Electric Bicycles in Addressing India’s Mobility Challenges
India’s transportation sector faces several challenges, including high fuel costs, traffic congestion, and a lack of reliable public transportation in rural areas. Electric bicycles address these issues effectively by providing an affordable and accessible alternative that aligns with India’s economic and environmental goals.
Affordable and Sustainable Transportation for Rural Areas
A significant portion of India’s rural population, particularly women, students, and daily wage workers, lack access to affordable mobility options. In states like Odisha, Madhya Pradesh, Himachal Pradesh, and the North-Eastern states, traditional bicycles are often impractical due to long distances and challenging terrains.
Electric bicycles, equipped with lightweight batteries and efficient motors, bridge this gap by offering a low-cost, low-maintenance alternative that significantly reduces travel fatigue. These vehicles can cover 50–80 km on a single charge, ensuring that students and workers can commute without financial strain. Importantly, electric bicycles come with pedal assist technology, which means the motor helps when pedaling, making it easier to ride. It feels like getting a push while riding a normal bicycle, so you don’t get tired easily.
Women’s Empowerment through Electric Bicycles
Mobility is a key enabler of women’s economic and social empowerment. In many rural regions, girls drop out of school due to the lack of reliable transportation. Electric bicycles provide a practical solution, enabling young girls to travel safely and efficiently to schools and colleges.
Moreover, the added safety features such as GPS tracking, mobile charging, and LED lighting ensure security, especially in remote and poorly lit areas. Government initiatives subsidizing electric bicycles for female students and working women could play a pivotal role in increasing female participation in education and employment.
Fig 2: School children on bicycles. Pic credit: X image @amitabhk87
Low Cost and Frugal Design for Mass Adoption
One of the biggest advantages of electric bicycles is their low cost of ownership . With prices ranging from Rs 20,000 to Rs 50,000 , they are significantly cheaper than motorcycles and electric scooters. The operational costs are minimal, with electricity consumption per charge costing less than Rs 5.
The simple, frugal design of electric bicycles ensures minimal maintenance costs, making them an attractive option for people in lower-income brackets. By leveraging local manufacturing and assembling units, India can boost employment while keeping costs competitive.
Electric Bicycles as a Preferred Mode for Last-Mile Connectivity
Indian cities are plagued by severe congestion and pollution with last-mile connectivity remaining a persistent issue. Electric bicycles provide a seamless, eco-friendly, and space-efficient alternative for short-distance commutes.
A recent study indicates that over 60% of urban commutes in India are under 5 km, making electric bicycles a practical solution for millions of urban dwellers. With increasing government focus on EV charging infrastructure, integrating electric bicycle docking and battery-swapping stations in metro stations, bus stops, and railway stations can transform urban mobility.
Supporting Key Sectors: Delivery Workers & Postal Services
E-commerce and hyperlocal delivery services are expanding at an unprecedented rate in India. Companies like Zomato, Swiggy, Flipkart, and Amazon rely heavily on two-wheelers for last-mile deliveries. Given the rising fuel prices and environmental concerns, transitioning to electric bicycles can significantly cut costs and improve efficiency for delivery riders.
Similarly, India Post , with its vast network of postal delivery services, can benefit from electric bicycles, reducing operational costs while improving service efficiency. If the government introduces a subsidy program to equip postal workers with electric bicycles, it could lead to substantial cost savings and environmental benefits .
Fig 3: A woman pedals past a BedBath & Beyond store on a rented Citi Bike bicycle in New York City on December 7, 2018. Pic by Robert Nickelsberg/Getty Images
International Experience and Global Trends
The adoption of electric bicycles has seen remarkable success worldwide. In European countries like the Netherlands, Germany, and Denmark , electric bicycles have become the dominant mode of transport for short distances. Cities like Paris and London have introduced incentives and subsidies to encourage electric bicycle usage, significantly reducing urban congestion.
In China , electric bicycles have become a primary choice for urban commuting, leading to a significant reduction in air pollution and road congestion. Similarly, in the United States , cities like New York and San Francisco are witnessing a surge in electric bicycle adoption due to government-backed incentives and infrastructure development. India can learn from these success stories and implement targeted policies to accelerate the adoption of electric bicycles domestically.
Environmental Benefits and Sustainability
Electric bicycles play a crucial role in India’s commitment to reducing carbon emissions and oil dependency. With zero tailpipe emissions and a negligible carbon footprint, widespread electric bicycle adoption can contribute significantly to India’s National Electric Mobility Mission Plan (NEMMP) and FAME-II objectives.
Considering that India imports over 85% of its crude oil, shifting to electric mobility will reduce the country’s fuel import bill. Additionally, electric bicycles consume 90% less energy than traditional petrol-powered two-wheelers, further strengthening their case for widespread adoption.
Policy Recommendations for Budget 2025
To accelerate electric bicycle adoption in India, the following policy interventions should be considered in the upcoming budget:
- Direct Subsidies and GST Reduction: Reduction of GST on electric bicycles from 5% to 0% and introduction of direct subsidies of Rs 10,000 for electric bicycles priced below Rs 40,000 and Rs 15,000 for electric bicycles priced below Rs 60,000 can encourage adoption.
- Rural Women Mobility Scheme: Launching a subsidized electric bicycle scheme for female students and working women in rural areas can improve education and employment access.
- Delivery and Postal Fleet Electrification: Mandating a 20% transition of delivery and postal vehicles to electric bicycles by 2026 and providing financial incentives to businesses and government bodies.
- Public Charging and Battery-Swapping Infrastructure: Installation of 100,000 public charging points across key urban and rural areas, with a focus on integrating solar-based charging.
- Make in India Incentives: Provide production-linked incentives (PLI) for domestic manufacturing of electric bicycles and components, reducing dependency on imports.
- Microfinance and Credit Support: Introduce low-interest financing options for electric bicycle buyers through rural banks and NBFCs, making them more accessible to lower-income groups.
Pushing Adoption of Electric Bicycles: The Way Forward
Electric bicycles are more than just a mobility solution; they represent a transformative shift toward affordable, sustainable, and accessible transportation in India. By addressing rural mobility gaps, empowering women, and enhancing urban sustainability, electric bicycles can play a key role in shaping India’s transportation future.
As the Union Budget 2025 approaches, the government must take bold steps to mainstream electric bicycles through policy incentives, infrastructure development, and financial support. A well-structured push towards electric bicycles will not only reduce dependence on fossil fuels but also create a more inclusive and resilient transportation ecosystem for millions of Indians.
Randheer Singh is the former director of Niti Aayog and Founder of AOKI Mobility Pvt Ltd
