Is Selling Electric Bikes Profitable?

by AMO Electric Bikes AMO Electric Bikes

Is Selling Electric Bikes Profitable?

 

If you want to establish/start your own electric bike dealership in your town or city, this question may bother you every day. There was indeed a tough time for electric two-wheelers a few years back in the Indian market, but current commercial data and studies show that the sector has overcome some big challenges, including a lack of charging infrastructure, and is now providing a lucrative return to manufacturers and dealers.

AMO Mobility Solutions, based in Noida, has grown by almost 500 percent year on year, and the firm celebrated its Fourth Foundation Year by hosting a gala event and unveiling a spectacular lightweight electric bike called Brisk. According to the company's top leadership, AMO'S electric scooty dealerships, which currently number almost 300 across the country, receive anything from 14 percent to 25 percent.

More information on how the Indian electric bikes market is doing and what commercial data reflects may be found in the next section but before moving ahead you must first read the following section that explains how e bike dealerships make money and become profitable.

How e-scooty dealerships make profit by selling e-bikes and e-scooters?

With their products, battery scooty dealerships in India can eye a significant market since they encourage consumers to look beyond petrol-powered vehicles due to rising fuel prices and environmental concerns. Therefore, you must understand how auto dealers typically make money if you want to start an e-scooter dealership business.

The cost of establishment would be higher if you choose any top brand in India, meaning you will need to invest more money. Otherwise, you can start with as little as Rs. 20 lakh if you choose a rising E Bike Company in India, similar to AMO Electric Bikes.

With an electric scooter dealership, you have lots of room to maneuver despite the fact that there are operational fees and overhead expenses. Look at the section below for an example of how electric bike dealers make money.

6 ways electric bikes dealers earn revenue || e bike dealership

If you're opening an electric bike dealership business, you must be considering methods for generating a steady income. Generally speaking, there are six main ways for every e scooty dealership to generate income and profit.

As an Electric Scooter Dealership, you regularly profit from the standard sales commission associated with each e-vehicle you sell. It might range from 3 to 8 percent for each vehicle.

Secondly, selling consumers spare parts and components is another way to increase your revenue at the dealership.

Thirdly, you may make a lot of money by maintaining and servicing electric bikes and escooters at your dealer’s service center.

Finally, as an electric bike dealership, you also receive payments from the banks that finance the vehicles in addition to commissions from the insurance providers.

Many e bike dealers also opt to set up charging stations at their dealership locations, and they may make extra money by charging electric scooters and bikes for customers who arrive with dead batteries.

It is frequently observed that electric scooty dealerships receive a portion of their income from OEMs, who help them with marketing costs.

During the festive season like the recently concluded Diwali and Dhanteras, an e-scooter dealer might expect increased sales if he or she focuses on pitching appealing advertisements and promotional offers that can persuade customers to buy an e-bike.

According to AMO Mobility Solutions, a top e bike company in India, the majority of its electric scooter dealers saw decent growth of 12–18 percent annually. More e-scooters are purchased with the additional funds, which are also utilized to hire more workers.

What studies and data show about the Indian electric bikes market?

 Given that it includes the majority of EVs sold in India, the electric two-wheeler category is more alluring there. According to estimates, electric scooters and electric bikes account for over 96 percent of the country's EV market. This may raise concerns for the market for electric four-wheelers, but again, electric cars must play the long game to lower their costs and increase their effectiveness and range.

Concerning the sales of electric two-wheelers, India has had strong growth over the past several months. Over 2,40,000 registered electric two-wheelers have been sold between January and June 2022. The electric two-wheeler market is anticipated to expand at a robust compounded annual growth rate of 75–80 percent between FY22 and FY25, according to numerous studies.

The bulk of these sold electric two-wheelers has limited speed and range. But because the market is expecting some fast, high-range electric two-wheelers, several manufacturers, including Hero, Ola, Okinawa, AMO Electric Bikes, and Ather, have introduced their own high-speed models. Although sales of these high-speed variants have yet to take off, analysts predict that Indian consumers will prefer high-speed two-wheeler EVs.

Another prediction states that by 2028, the market for electric two-wheelers in India, which is currently estimated to be worth $255 million, or around Rs. 2000 crores, will have grown to exceed Rs. 8000 crores. Between 2024 and 2028, a growth rate of more than 27 percent is anticipated.

Electric vehicles are becoming increasingly appealing as a result of the Indian government's ambitious plan to phase out vehicles of internal combustion engines (ICEs). If high electric bike price is a concern for you, government subsidies are already in place to ease your burden. Electric Scooty Prices will drop even more as a result of ground-breaking advancements in design and battery technology.

Wrap Up

Currently, selling electric bikes is still profitable due to the steady and increasing demand. In the developing EV market, you will have enough income sources to earn profitably for a very long time if you start an electric scooter dealership.

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Created on Nov 18th 2022 03:17. Viewed 262 times.

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