Low-Powered Electric Motorcycle and Scooter Market Trends

Low-powered electric motorcycles and scooters are witnessing significant technological advancements in battery technology. Recent innovations have produced batteries with higher energy density, faster charging times, and longer life cycles, making electric scooters and motorcycles more practical for everyday use. The development of lithium-ion and solid-state batteries has significantly improved range and performance, addressing concerns about limited driving distances and frequent recharges.

These improvements also lower the overall cost of ownership, as efficient batteries require less frequent replacement and reduced maintenance. Additionally, advancements in battery management systems enhance safety and reliability, further boosting consumer confidence. As battery technology continues to evolve, the market is poised to benefit from increased adoption rates and wider acceptance.

For instance, in October 2024, Honda unveiled two new electric personal computer models, the CUV e: and ICON e: in Indonesia, marking significant steps in its strategy to expand its electric vehicle (EV) lineup. These models are part of Honda's ambitious plan to introduce 30 electric models globally by 2030. The CUV e: is powered by two Honda Mobile Power Pack e: swappable batteries, designed for urban commuting.

This model is equivalent to a 110cc scooter and features a sleek design aimed at city riders. The ICON e: utilizes a fixed ternary lithium-ion battery, classified as a Class 1 moped in Japan. It provides a cruising range of over 50 km per charge. Both models will be manufactured in Indonesia, with plans to expand their availability to other global markets.

The high initial cost of low-powered electric motorcycles and scooters presents a significant market barrier. Despite lower long-term operating costs, the upfront price of these vehicles remains high due to expensive battery technology and electronic components. This makes them less accessible to price-sensitive consumers, particularly in developing regions where affordability is crucial.

Additionally, limited economies of scale and high research and development costs further drive-up prices, slowing the market’s adoption rate. Although government subsidies and incentives exist, they may not always sufficiently offset the initial investment to attract budget-conscious buyers. This price disparity compared to traditional gasoline scooters remains a challenge in expanding market penetration.