India Electric Three-Wheeler – Industry
Trends & Forecast Report 2027
electric three-wheeler market has reached USD 636.9 million in 2020 and is
anticipated to reach USD 1,845.1 million by 2027, at a CAGR of 16.3%, during
the forecast period (2021-2027). The growing concern over air pollution is
pushing the automobile industry to reduce its carbon footprint, bolstering the
need for electric three-wheelers in the market. Additionally, the market is
primarily driven by strict emission norms/regulations, government incentives,
and increasing environmental awareness. Moreover, consistently increasing affordability
of electric three-wheelers is boosting their adoption across the country,
propelling the Indian electric three-wheeler market even further.
Source: BlueWeave Consulting
India Electric Three-Wheeler
An electric three-wheeler
comes with an electric motor instead of an internal combustion engine (ICE). It
generates power by burning a mixture of fuel and gases. One of the most unique
features of electric three-wheelers is that they can be plugged in by the
driver to charge from an off-board electrical power source. This property
differentiates electric three-wheelers from hybrid electric vehicles, which
have an internal combustion engine and an electric motor that consumes energy
contained in batteries. Electric three-wheelers are mainly used for public
transportation such as e-rickshaw and auto service in the city.
India Electric Three-Wheeler
Forecast and Trend
Growing Concerns Over
The Environmental Performance Index
(EPI) 2018 ranks India among the bottom five nations. As far as air quality is
concerned, India’s CO2 emissions rate is increasing every year owing to the
emission of toxic gases by fuel-based vehicles. Therefore, the Government of
India is now focusing more on EVs such as three-wheeler vehicles and
introducing policies such as FAME 1 and FAME 2. These initiatives would help
improve air quality besides favoring the market during the forecast period. A
study conducted by TERI (The Energy and Resources Institute) in 2018 revealed
that average traditional LPG auto emits around 0.005 tons of Particulate
Matter-10 (PM10) and 3.72 tons of carbon dioxide per year.Electric
auto-rickshaws (e-autos), on the other hand, emit zero tailpipe emission and
make no noise while meeting people's transportation needs. Furthermore, the
fact that an electric three-wheeler has lower maintenance and running costs
then an internal combustion engine vehicle is likely to propel the growth of
the industry in the coming years.
to Drive the Market Growth
The government of India has been responsive in recognizing the need for
transitioning to electric mobility and has developed policies and schemes to
direct growth in this direction on numerous occasions. Such policies and programs emphasize the importance of electric three-wheelers in achieving last-mile connectivity.
The Indian electric three-wheeler market is growing rapidly as a result of
government funding and incentives under the country's "FAME India"
schemes, which encourage the faster adoption of electric three-wheelers.
the measures at the national level, several state governments are also
committed to promoting electric three-wheelers in their states to drive market
growth. For example, the Maharashtra Electric Vehicle Policy aims to offer a
subsidy of up to INR 12,000 for the purchase of electric-three wheelers. Additionally,
Andhra Pradesh Electric Mobility Policy 2018proposes policy measures such as waiving
registration and road tax on the sale of EVs, as well as tendering
three-wheeler fleet licenses to businesses owing to which people are buying
electric-three-wheelers, thereby driving the market growth.
Lack of Standardization of
One of the biggest restraints for the
success of deploying the electric vehicle three-wheeler market in India is the
lack of adequate charging infrastructure. India’s EV charging infrastructure is
still at a nascent stage at present and has yet to catch up to meet the
country's needs. This particular factor is severely hampering the acceptance of
EVs in India. Proposing land is a major challenge in any metro city as charging
stations need reserved space not just for the setup, but also for parking
spaces so that multiple vehicles can park and use the charging station. This is
yet another factor that is hindering the growth of the electric three-wheeler
vehicle market in India.
Impact of COVID-19
The COVID-19 pandemic has posed a
significant threat to India's electric three-wheeler market as the production of
electric two-wheelers have been hampered as a result of the lockdown. For a
market that is trying to strengthen its position in the industry, COVID 19 came
as a severe blow.
However, in comparison to their ICE counterparts,
the Indian electric three-wheeler market is likely to recover quickly from the
setback. Investing in an electric three-wheeler is likely to aid in the
preservation of air quality and the reduction of health risks in communities.
Recently, the “Switch Delhi’ campaign was launched by Delhi’s Chief Minister,
Mr. Arvind Kejriwal for promoting electric vehicles in the city. The campaign
has gained widespread support and praise from environmentalists, consumers,
celebrities, and business leaders. Additionally, after the implementation of the
Delhi EV policy in August 2020, three-wheelers have become the most common EV
segment in the city. There have been 5534 new EV three-wheeler registrations,
with more users coming forward to make the switch.
India Electric Three-WheelerVehicle
Market: By Battery
Based on battery, the Indian electronic
three-wheeler market is categorized as a lead-acid battery,
lithium-ion-battery, and nickel-metal hybrid battery. Lithium-ion batteries
have the highest market share because they are lightweight, have improved
protection, and are chemically and thermally stable. Additionally, they are
more reliable and are capable of fast charging. Because of these advantages,
electric two-wheeler manufactures are widely adopting lithium-ion batteries in
electric three-wheelers, which in turn is driving the growth of the lithium-ion
battery in this segment. Furthermore, lithium-ion batteries can last up to 10
years or longer, based on how well they are maintained, attracting customers to
purchase electric two-wheelers besides fueling market development.
Furthermore, most lithium-ion batteries
are 95% more powerful, which means 95% or more of the energy contained in the
battery can be utilized. Lead-acid batteries, on the other hand, have
efficiencies of about 80 to 85%. High-quality batteries charge faster and more
efficiently, resulting in a greater effective battery capacity, which is equal
to the depth of discharge.
India Electric Three-Wheeler
Vehicle Market: By Vehicle Type
Based on the vehicle type, the India
electric three-wheeler is segmented into passenger carriers and load
carriers. Passenger carriers include
auto-rickshaws and carriers. These are largely used in rural areas as well as
towns and cities. The auto-rickshaws and carriers are mainly used for traveling
distances that cannot be covered by walking or cycling. Increasing demand for
motorized transportation in public transportation systems is surging the growth
of passenger carriers.
The load carrier segment in the electric
three-wheeler market is likely to witness significant growth during the
forecast period. Load carriers are mainly small vans or trucks that are used
for carrying small-scale industrial loads from one place to another. These are
mostly used in the industrial and commercial sectors. Rapid industrialization
is one major reason that is driving the growth of load carriers.
India Electric Three-Wheeler
Market: Regional Analysis
India electric three-wheeler market is segmented in Eastern
India, Northern India, Southern India, and Western India. Southern India
accounts for the highest share and is expected to be the largest and fastest-growing market as many automotive industries are setting up their manufacturing units
in this region. Bangalore, known as the Silicon Valley of India, is home to
many startups. This is due to the friendly rules and regulations set up by the
Government of Southern India, which encourages different manufacturers to set
up their manufacturing units, thereby boosting the demand for electric
three-wheelers in Southern India.
The leading players in the Indian electric-three wheeler
include- Lohia Auto Industries, Saera Electric Auto Pvt. Ltd, Kinetic Green
Energy & Power Solutions Ltd., Terra Motors India Corp, Clean Motion, Mahindra
Electric Mobility Limited, Omega Seiki Pvt. Ltd., ATUL Auto Limited, Piaggio, Mayuri
E-Rickshaw, and other prominent players. The India electric three-wheeler market is consolidated in nature. The rise in government initiatives and
programs for providing subsidies has led to the rising demand for electric three-wheelers.
In terms of competition, many new players are expected to enter the market in
the coming years as the electric three-wheeler market is emerging rapidly.
Moreover, the market participants are focusing on improving their services to
attain a competitive edge over other players.
In February 2021, Amazon India announced
its partnership with Mahindra Electric to further strengthen its commitment
towards electric mobility in the country. In 2020, Amazon India announced that its fleet of delivery vehicles will include 10,000 electric vehicles (EVs) by
2025 in India. These EVs are in addition to the global commitment of 100,000
electric vehicles in the delivery fleet by 2030 announced in the Climate Pledge
signed by Amazon. This partnership with Mahindra Electric is an important step
towards India’s progress in the e-mobility industry to achieve its
environmental sustainability goals.
In October 2020, Mahindra Electric
Mobility Ltd., announced the launch of its latest electric 3-wheeler cargo
model, Treo Zor in India starting at INR 2.73 lakh. The Treo Zor is based on
the proven Treoplatform and will be available in three variants – Pickup,
Delivery Van, and Flat Bed.
Scope of the Report
Historical data – 2017-2020
Base Year – 2021
Forecast – 2021 –
Revenue in USD Million
Eastern India, Northern India,
Southern India, Western India
vehicle type, battery capacity, range, battery type, and region
Key players in the electric vehicle market are- Lohia Auto Industries,
Saera Electric Auto Pvt. Ltd, Kinetic Green Energy & Power Solutions
Ltd., Terra Motors India Corp, Clean Motion, Mahindra Electric Mobility
Limited, Omega Seiki Pvt. Ltd., ATUL Auto Limited, Piaggio, Mayuri
E-Rickshaw, and other prominent players.
By Vehicle Type
Ø Passenger Carrier
Ø Load Carrier
By Battery Type
Ø Lead Acid Battery
Ø Lithium-ion Battery
Ø Nickel Metal Hydride Battery
By Battery Capacity
Ø Less Than 50 Miles
Ø 50–100 Miles
Ø Above 100 Miles
will be the expected size of the Indian electric three-wheeler market in 2027?
Answer: The Indian electric three-wheeler market is
expected to reach USD 636.9million in 2027.
are the major factors driving the growth of the Indian electric three-wheeler market?
major factors driving the growth of the Indian electric three-wheeler market
are growing concerns over environmental pollution and heavy investments from
automakers in electric three-wheelers.
are the key players in the Indian electric three-wheeler market?
Answer: The key
players in the Indian electric three-wheeler vehicle market are Hero Electric
Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd., Avon
Cycles Ltd., Okinawa AutotechPvt. Ltd., NDS Eco Motors Private Limited,
Kawasaki, Ather Energy Pvt., and other prominent players.
battery type accounted for the largest share in the Indian electric three-wheeler
Answer: Lithium-Ion battery accounted for the largest
share in the Indian electric three-wheeler market.
Which region is expected to grow at a higher CAGR
during the forecast period?
Answer: Northern region is expected to grow at a
higher CAGRduring the forecast period.