EV has become the buzzword amongst angel investors and early-stage VCs. The FOMO (Fear of Missing Out) has caused many angel investors to invest in ways that are not highly recommended. The valuation has skyrocketed which leaves little space for early-stage investors to beg an attractive multiple when they will get exit (or rather if at all they get an exit!). Let’s get a quick snapshot of what’s happening in the EV two-wheeler space in India.

In a nutshell:

The ideation window for EV two-wheeler startups is already closed. The biggest challenge for most EV players now is not building a prototype, but efficient mass production. Moreover, quality issues with EV batteries came to the fore when a panel of experts investigated the cases of electric vehicles catching fire. Here, the legacy player may have an edge considering their existing expertise to mass produce vehicles with proven quality standards, backed up national distribution and service network, but there is a high probability that the two-wheeler EV market leader of tomorrow will be a new player.

It is a classic bubble build on exaggeration and over-enthusiasm of investors who remain bullish about the “EV Story”. And everyone is betting big on this window of opportunity. Only the time will tell who will perish and who will emerge as a leader. So, if you have not already invested in a growing EV startup, it’s time to tread carefully as you must have either already missed the opportunity or now you are going to pay higher premium to enter this segment. It’s time to revaluate. It’s time to probably explore other growing sectors to invest!