The decarbonisation of road transport is gathering momentum, but not everybody is finding it easy to jump onboard. Steep upfront costs are proving a major barrier to ownership for the non-enthusiast mass market. An international study by S&P Global Mobility in November 2023 revealed that 48% of consumers worldwide find electric vehicles (EVs) are too expensive. Commenting on the study’s findings, Yanina Mills, Senior Technical Research Analyst at S&P Global Mobility, notes that "pricing is still very much the biggest barrier" to mass adoption.
This is of particular concern in developing regions such as India, where success is particularly dependent on low cost. As such, the two-wheeler segment has disproportionate importance. In addition to a significantly lower upfront cost, two-wheelers are cheaper to run: whereas a Tesla Model Y may cost around US$0.04 to run per mile according to energy comparison platform Solar reviews, the average electric moped costs less than US$0.01. However, battery size and range can often prove a limiting factor when electrifying these vehicles, making them incompatible with the needs of many drivers facing longer commutes.
