Asia-Pacific Electric Three Wheeler Market
Asia-Pacific Electric Three Wheeler Market to Grow at a CAGR of 20.9% during Forecast Period in terms of Volume
Published | 28 October 2022
Asia-Pacific Electric 3-Wheeler market is growing at a high CAGR due to the advancement of battery technology for electric vehicles and the shift of APAC electrical car manufacturers toward sustainable development. Moreover, the fast engineering and manufacturing development in the area and the government's greater use of environmental controls are other factors boosting the growth of the Asia Pacific electric 3-wheeler market.
A recent study by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Asia-Pacific Electric 3-Wheeler market was 229.2 thousand units in 2021. The market is projected to grow at a CAGR of 20.9%, to reach 853.6 thousand units by the end of 2028. The Asia-Pacific electric 3-wheeler market is booming due to the advancement of battery technology for electric vehicles and the shift of APAC electrical car manufacturers toward sustainable development. Moreover, the fast engineering and manufacturing development in the area and the government's greater use of environmental controls are other factors boosting the growth of the Asia Pacific electric 3-wheeler market. Additionally, the usage of electric three-wheelers as an effective and environmentally friendly means of transportation, the growing trend toward last-mile connectivity, and the increasing demand for reasonably priced commercial vehicles all contribute to the market's expansion.
Tendency To Utilize Electric Three-Wheelers As An Effective And Environmentally Beneficial Option Coupled With Rising Demand Will Boost The Market Growth
Governments and environmentalists have been deeply concerned about the steadily rising global carbon emissions caused by fuel burning over the past few years. As a result, the demand for electric three-wheelers increases, supporting the market's expansion. Further increasing the adoption of electric three-wheelers around the region is increasing global fuel prices, pollution levels, and traffic congestion, particularly in urban areas.
The increase in commercial vehicle spending in developed and developing countries is the factor driving the demand for fairly priced commercial vehicles. For instance, in January 2021, Tata Motors increased the prices for every model in its line of commercial vehicles, opening the way for competitively priced three-wheelers for use at work. Three-wheeler pricing and accessibility from door to door are other significant concerns. In many middle- and low-income countries, three-wheelers are a considerably faster, more affordable, and more flexible transportation option than other types of vehicles. In many low- and middle-income nations, three-wheelers are also associated with better employment opportunities, which raises the demand for three-wheelers on the global market.
However, the battery supply in electric vehicles lacks a backup power source. The global market for electric three-wheelers faces significant growth barriers due to most cities' lack of charging stations. An issue with electric vehicles can also put travelers at risk due to a lack of reliable infrastructure and range anxiety. These factors mentioned above are anticipated to limit the market growth.
Lithium-ion Leads The Market By Battery Type
Based on battery type, the market is segmented into lithium-ion, lead-acid, and others. The market for electric three-wheelers worldwide is dominated by the lithium-ion category. Comparing these batteries to lead-acid batteries, they offer better energy densities. As a result, the battery size can be reduced while still having the same amount of storage. In addition, lead-acid batteries require an average of 10 hours to fully charge, compared to 3 to 4 hours for lithium-ion batteries.
Lithium-ion batteries have the biggest market share among electric vehicles and will continue to be the top shareholder during the forecast period. For instance, the Indian government is stepping up its efforts to promote electric vehicles by placing them in the lower 5% GST bracket instead of, the higher 12% GST rate for internal combustion engine (ICE) vehicles. Lithium-ion batteries are taxed at 18%, while e-vehicles are only subject to a 5% tax. In addition, the government has lowered the GST on lithium-ion batteries from 28% to 18% as of July 2018 and plans to lower it further. In December 2021, NITI Aayog chief executive Amitabh Kant said the government is working on reducing GST on EV batteries.
India Held The Largest Market Share In Asia-Pacific Region in 2021
Due to extremely beneficial government regulations for electric vehicles and growing infrastructural developments, India now has the lion's share of the industry. These elements are the main drivers driving market expansion in the area. Additionally, the government of India has taken major measures to reduce the number of ICE vehicles on the road and raise the standard of living for those who live in urban areas, including the Government Scrap Policies and Electric Vehicle Policy 2020. The market demand for 3 wheeler EVs is also driven by tax-cutting measures for the export and import of electric vehicle components for the first three fiscal years based on no profitability and no loss margins.
Impact of COVID-19 on Asia-Pacific Electric 3-Wheeler Market
Globally, the COVID-19 outbreak significantly influenced the automotive industry, which resulted in a sharp decline in sales, a shortage of raw materials, & other problems. Numerous small and large participants in the automobile industry were dealing with problems like a halt in production, government-mandated plant closures, and others. During the pandemic, various players were attempting to devise new strategies to combat the condition. One such strategy was to use three-wheelers for medical supplies as they offer convenient, economical transportation that is also very flexible. Post covid, the market has been recovering rapidly and has been showing promising growth since late 2021.
An industry leader and innovator in India's electric 3-wheeler market is Mahindra & Mahindra. The company has developed a thorough roadmap to launch a robust electric car ecosystem to bring tomorrow's movement today. This has been done by heavily investing in innovating next-generation technologies and well-known products to promote sustainable mobility. The company offers a wide selection of electric vehicles and by creating new systems integration, battery technologies, and motor controllers.
However, the other key players operating in the Asia-Pacific electric 3-wheeler market are Bajaj Auto, Saera Electric Auto Pvt. Ltd., Xianghe Qiansheng Electric Tricycle Factory, Lohia Auto Industries, Hero Electric Industries, Kinetic Engineering Ltd., Atul Auto Ltd., Piaggio Group, TVS Motor Co., Terra Motors Corporation, Jiangsu Kingbon Vehicle Co. Ltd., ElecTrike Japan Co. Ltd., Changzhou Yufeng Vehicle Co. Ltd., Gayam Motor Works (GMW) and other prominent players.
The report's in-depth analysis provides information about growth potential, upcoming trends, and statistics of the Asia-Pacific Electric 3-Wheeler market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Asia-Pacific Electric 3-Wheeler market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the market's growth drivers, challenges, and competitive dynamics.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost the performance of your business solutions. BWC has built its reputation from scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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