Global Two-Wheeler Potential Market and Electrification Opportunities in the Developing World
Aug 13, 2025Global Two-Wheeler Potential Market and Electrification Opportunities in the Developing World
The global potential user base for two-wheelers is estimated at 2–2.5 billion people, accounting for about one-third of the world’s population. The expansion of electric two-wheelers into developing countries has emerged as a new business opportunity.
Recently, a domestic company has attracted attention by recruiting overseas management positions for its mobility division and a product manager for electric motorcycles. According to insiders, its internally incubated electric two-wheeler project has been under quiet development for nearly three years, focusing on markets in Africa and South Asia.
Against the backdrop of the global electrification wave, two-wheelers have become the mainstream vehicle for electrification in the developing world. For example, South Asia and Southeast Asia have long seen the development of electric two-wheelers, with fierce competition. Industry consensus holds that the electrification of two-wheelers in developing countries is creating new opportunities for companies across the supply chain to expand overseas.
Some companies’ market deployments have brought attention to the opportunities for electric two-wheelers in Africa. For the African market, the importance of two-wheelers is comparable to the proliferation of smartphones: high demand, low penetration, and the starting point of a blue-ocean market. In some African countries, policy support is pressing the “start button” for electrification.
At the end of 2024, the Rwandan government announced that starting in 2025, its capital Kigali would prohibit the registration of new fuel-powered motorcycles, requiring all newly registered vehicles to be electric motorcycles. The country also plans to build over 200 charging stations, with one station every 50 km, and has formulated a nationwide support plan, including fiscal subsidies to encourage private enterprises to participate in localized production of complete vehicles, power systems, and charging equipment.
Rwanda is not alone in this. In 2023, Kenya announced a partnership with a local EV startup to promote the sale of 1.2 million electric motorcycles and deploy more than 3,000 battery swap and charging stations. Uganda is also advancing its motorcycle electrification replacement plan, offering dual subsidies for vehicle purchases and battery replacements.
Many government policy documents clearly position electric motorcycles as a key driver for emission reduction and energy transition in the transport sector, listing them as a priority project for clean transport infrastructure development.
While Europe and the U.S. focus on smart four-wheel EVs, two-wheelers have overtaken cars as the main vehicle of electrification in developing regions such as Africa, South Asia, and Southeast Asia. This is the result of multiple factors:
Before African nations, the two-wheeler markets in South Asia and Southeast Asia also took off under strong policy support.
lIndia’s subsidy policies for electric two-wheelers drove a 33.5% year-on-year sales surge in 2023, reaching 857,000 units.
lIndonesia plans to replace 1.8 million fuel motorcycles by 2025.
lVietnam has achieved the highest electric two-wheeler penetration rate in Southeast Asia at 8.5% through tax incentives and dedicated lane planning.
Now Africa is entering a window of infrastructure growth. While it is less mature than Southeast Asia in technology and policy, it offers more “from zero to one” opportunities.
In less-developed regions, two-wheelers are not only consumer goods but also vital production tools.
In Sub-Saharan Africa, the motorcycle fleet grew from 5 million in 2010 to 27 million in 2022, with over 80% used for commercial transport—such as motorcycle taxis, logistics, and rural-urban shuttles.
Professional riders typically travel over 50 km per day, with fuel costs accounting for 30–40% of their income. Electrification can reduce total lifecycle costs by more than 50%.
In some parts of Africa, grid coverage is below 20%, and in Bangladesh, daily power outages last 2–4 hours. Compared with four-wheelers, two-wheelers are better suited to complex terrain and areas with limited electricity access.
lAfrica: High temperatures and dust require batteries with excellent thermal stability, sealing, and dust protection.
lSoutheast Asia: High humidity, long rainy seasons, and complex road conditions require batteries with water resistance, shock resistance, and long life.
In areas with unstable or limited grid coverage, a balance must be struck between cost-effectiveness and adaptability, such as hybrid battery solutions or low-power charging compatibility. The battery-swapping model is highly advantageous here—some operators can serve thousands of riders with just a few swapping stations.
High-intensity use requires batteries with fast-charging capabilities, long cycle life, and high power output. Examples include batteries that charge to 80% in 20 minutes, or lightweight, high-discharge modules that significantly improve operational efficiency.
Building local production plants can lower tariffs and logistics costs, shorten supply chains, and improve market responsiveness.
A well-established offline after-sales network is crucial for winning in developing markets, as users prioritize ease and timeliness of battery maintenance and replacement.
By establishing integrated R&D, production, sales, and operations networks across multiple countries, companies can increase the share of overseas revenue and strengthen supply chain resilience.
