In daily life travelling becomes vital for human being. Time taken for travelling should be less; it should be economical and easily available. The growing use of travelling vehicles has increased the problem of air pollution, global warming issue and increased use of petroleum. The human awareness for energetic and environmental problems is encouraging the research in alternative solutions for the automotive field, as multiple fuelling, hybridization and electrification. Electric bike can be considered good alternative for both personal and good transportation especially for small and medium distances. Electric bike is normally powered by rechargeable battery and their practical performance is influenced by motor power, battery capacity, road type, operation weight, control etc. Electric bike can be classified into two main categories: First one is pure electric bike which integrates electric motor into bicycle frame or wheels and driven by motor force just using a handle bear throttle. Second one is human-electric hybrid bicycle that supports the rider with electric power only when the rider is pedalling. This paper focus on concept of electric vehicle, major constructional parts, manufacturing companies, market survey, advantages, problems, government initiatives in India, future scope etc.