Direct-to-Customer model gains traction in electric two-wheeler startups

In the ever-evolving landscape of the electric vehicle industry, a paradigm shift is underway with the emergence of the direct-to-customer model, particularly notable in the realm of electric two-wheeler startups. This trend sees companies bypassing traditional dealership networks to deliver vehicles directly to consumers, promising streamlined processes and heightened customer satisfaction.

Vineet Agarwal, Managing Director of Transport Corporation of India (TCI), a leading logistics provider in the country's automobile sector, anticipates a significant uptick in this approach in the coming years. According to Agarwal, the direct-to-customer model enhances the customer experience by reducing delivery timelines, a pivotal factor in today's fast-paced market environment.

Speaking on the growing prevalence of this strategy, Agarwal remarked, "Every company is now talking about it," elucidating that electric two-wheelers are sourced directly from manufacturing facilities and dispatched to customers without intermediary dealership involvement.

While the inception of direct-to-customer delivery was witnessed through select e-commerce channels in previous years, its impact remained marginal. However, it was Bhavish Aggarwal-led  Ola Electric, that propelled this concept to prominence. In 2021, the Bengaluru-based company announced home delivery services for its vehicles, setting a precedent for the industry.

For the sake of context, Ola Electric sold over 2.5 lakh units in 2023, claiming a commanding market share of approximately 41%. Ola Electric's success in adopting a direct-to-customer model is now  reshaping the two-wheeler EV  landscape, making others follow suit.