Urban populations in emerging economies are growing rapidly as economic prospects continue to attract migration from rural areas. However, infrastructure and mass transportation solutions are struggling to keep up. Traffic congestion and dense smog have become the norm.
A viable solution is already embedded in everyday life — the ubiquitous two-wheeler. According to GlobalFleet, Asia accounts for 90% of worldwide powered two-wheeler sales. Forward-thinking companies like Zapp EV are leading the transition to electric vehicles with a new approach set to transform urban mobility.
Public Transit Falling Behind
Swelling city populations are outpacing infrastructure development. In Delhi, average commuting times have risen over 1.5 hours longer this past decade due to gridlock. The average speed on Manila’s roads has slowed from 21 km per hour to just 10 km per hour over the past 30 years. Large-scale public transit projects also typically run over budget and miss timeline projections.
“Megacities need expanded mobility options but face budget limitations,” says Zapp’s Founder and CEO, Swin Chatsuwan. “Two-wheelers present an accessible and affordable way to empower personal mobility and help alleviate the congestion created by four-wheeled vehicles.”
Going electric reduces tail-pipe emissions to zero. However, first-generation models struggled with power delivery and convenience. Zapp’s approach to design, along with removable and portable batteries that are chargeable from any standard wall socket, eliminates these consumer sticking points for an optimal blend of high performance, affordability, and sustainability for urban mobility.
Two-Wheelers Embedded in Daily Life
The powered two-wheeler market has been estimated at $130 billion globally, and expected to grow more than 70% to $224 billion by 2029, per Fortune Business Insights. The largest markets are in Asia, and other emerging markets are growing.
Two-wheelers represent the first major necessity purchase for many households in emerging economies – a milestone enabling independent mobility along with potential livelihood generation. Consumers in India bought nearly 16 million two-wheelers in 2022, underscoring this demand, which continues to rise.
Several factors drive this continued two-wheeler demand. Growing incomes expand purchasing power but parking spaces remain limited, deterring four-wheel vehicle ownership in cramped urban areas. Additionally, two-wheelers navigate congested roads more seamlessly. Lower total cost of ownership also improves the affordability of going electric. Replacing conventional drivetrains with an electric alternative unlocks further adoption and other benefits amid rising gas prices and eco-awareness.
Market Dynamics and Opportunities
The global market signals significant potential for powered two-wheelers. While India’s overall two-wheeler market reached a staggering 16 million units sold in 2022, a large proportion of those sales in India are still basic, entry-level models below 150cc, with the premium segment (above 150cc) accounting for 18% of total two-wheeler sales there in 2023.
This reliance on urban motorcycles for commuting persists across India and other major Asian markets like Thailand, where an estimated 87% of households already own at least one conventional two-wheeler. As incomes rise across emerging economies, the opportunity for sales of premium two-wheelers will increase commensurately.
Urban densification makes two-wheelers a consumer must-have rather than a discretionary decision. Rising incomes allow consumers a choice to look beyond entry-level utilitarian models and instead select desirable premium lifestyle brands they want to have. Although limited charging infrastructure has hindered growth in sales of electric vehicles so far, Zapp sees a compelling opportunity as a British brand selling premium urban motorcycles that do not depend on dedicated charging infrastructure. With its design-focused approach offering a superior alternative to the mass-market models, Zapp’s recently launched i300 model is the vanguard of their vision, poised to attract customers seeking a sophisticated electric mobility solution in a step-through form factor without sacrificing high levels of performance.
Pioneering Purpose-Built EVs
Zapp engineered its inaugural model to surmount adoption challenges within urban environments. Its removable batteries allow convenient charging through any standard wall outlet.
Zapp also employs an asset-light business model that relies on contract manufacturing to facilitate a rapid production ramp-up globally. With export financing in place, significant contracted production capacity, and no minimum commitments, the company is prioritizing capital efficiency as volumes scale.
While mass transportation investments continue, decentralizing mobility through electric two-wheelers offers potential relief from emerging economy urban densification. Zapp’s purpose-built i300 aims to make battery-powered two-wheelers accessible and appealing to everyday commuters.
