Impact of Price Inflation on Consumer Demand for Electric Two-Wheelers

Abstract

Price inflation plays a significant role in shaping consumer purchasing behaviour in the electric vehicle market, particularly in the electric two-wheeler segment. Rising prices, driven by increasing battery costs, fluctuations in raw material prices, technological upgrades, and changes in government subsidy policies, directly influence consumer demand and purchasing decisions. Although existing studies have examined consumer attitudes, environmental concerns, perceived usefulness, and charging infrastructure in electric vehicle adoption, limited attention has been given to the impact of price inflation on consumer behaviour. This study aims to analyse how price inflation affects consumer demand for electric two-wheelers by considering economic, behavioural, and infrastructural factors. This study is based on secondary data collected from reputed automobile and business sources, such as The Economic Times and Business Standard, covering the period 2020–2025. Trend and comparative analyses were used to examine changes in electric two-wheeler prices in relation to subsidy revisions and market conditions. The findings indicate that rising prices significantly affect perceptions of affordability and purchase timing, highlighting the importance of stable pricing strategies and consistent policy support to sustain consumer demand for electric two-wheelers.