India Electric Three-Wheeler Market All Set to Flourish: Expected to Reach Worth USD 1,845.1Million in 2027
Published | 18 March 2021
According to a study
conducted recently by the strategic consulting and market research firm, BlueWeave Consulting India
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 growth is led
by the increasing need to curb the air pollution levels and the rising
incentive schemes by the government to support manufacturing as well as the use
of electric three-wheelers. Moreover, consistently increasing affordability of
electric three-wheelers are also boosting their adoption across the country. Additionally,
increasing investments by electric vehicle manufacturers to develop more advanced,
efficient, and affordable electric three-wheelers is likely to boost the growth
of India's electric three-wheeler market in the coming years.
Door-to-Door
Service by Electric Three-Wheeler Drive the Market Growth
Electrification of three-wheelers is essential in
many large and medium Indian cities for reducing air pollution and
providing sustainable mobility solutions, as well as for meeting transportation
needs.With a carrying capacity of three to seven passengers, auto-rickshaws and
e-rickshaws provide mobility solutions for short trips of up to 12 km, as well
as first and last-mile connectivity. They also offer feeder services to the
main haul public transport. The electric three-wheelers provide unparalleled
personalized door-to-door services and last-mile connectivity within the
cities. They often act as feeders to the public transportation system in
metropolitan cities and as a preferred mode of transportation for short trips
in small and medium cities. This mode fills the accessibility vacuum left by
India's insufficient public transportation system.
Launch
of Lucrative Initiatives by Government Augmenting the Market Growth
Because of government funding and incentives under
the country's "FAME India" schemes, which promote faster adoption of
electric three-wheelers, the Indian electric three-wheeler market is rapidly
growing. The electric three-wheeler market in India is expected to rise in the
coming years, as the market anticipates a more hospitable environment for the
industry's development under "FAME-II."According to the new standards
(FAME II), battery-powered three-wheelers with a minimum range of 80 km and a
top speed of 40 km/h is eligible for the subsidy. The new standards are
expected to significantly boost the segment. Over the projected period, the
Indian electric three-wheeler market is expected to be propelled by the rising
number of electric three-wheeler manufacturers and their rising emphasis on
research and development to produce technologically advanced and affordable
electric three-wheelers.
<101Ah
by Battery Capacity to Dominate the India Electric Three-Wheeler Market
The Indian electric three-wheeler market is
dominated by batteries with a capacity of less than 101 Ah. This can also be due
to the dominance of unorganized local players as the majority of these market players
manufacture low-cost rickshaws with battery capacities of less than 101 Ah.
Since <101Ah electric three-wheeler vehicles are stable and cost-effective,
such vehicles have gained maximum traction in the Indian electric three-wheeler
industry. Because of their high current power, <101Ah batteries are the
safest and most cost-effective choice. Furthermore, low-power dissipations
increase market penetration while providing excellent performance, high
reliability, and long service life.
India
Electric-Three Wheeler Market: Regional Insights
India's electric two-wheeler market is segmented
into Eastern India, Northern India, Southern India, and Western India. Northern
India accounted for the largest share in the Indian electric three-wheeler
market majorly across Delhi, Uttar Pradesh, Haryana, and others. In 2018, India
reported 370 thousand unit sales of electric-three wheeler in the country. According
to a new survey, three-wheelers accounted for approximately 83% of all-electric
vehicle sales in India in 2019. Two-wheelers followed in the second position
with a share of 16.59 percent while the sale of four-wheelers lingered just
0.47 percent.
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 has been hampered as a result of the lockdown. The COVID-19
pandemic has been a big disappointment for a market that is seeking to boost
its standing in the industry.
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.
Competitive
Landscape
The leading players in the Indian electric three-wheeler 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. The
India electric three-wheeler market is consolidated in nature. The rise in government policies and programs aimed at subsidizing electric three-wheelers
has resulted in increased demand for these vehicles. 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
October 2020, Mahindra
Electric Mobility Ltd. introduced the Treo Zor, an electric three-wheeler cargo vehicle, in India, with a starting price of INR 2.73 lakh. The Treo Zor is
based on the proven Treo platform and is available in three variants – Pickup,
Delivery Van, and Flat Bed, all of which are likely to help Mahindra Electric
Mobility Ltd. reinforce its product portfolio in the electric three-wheeler
market.
Don’t miss the business opportunity of
the Indian electric three-wheeler market. Consult our analysts to gain crucial
insights and facilitate your business growth.
The in-depth analysis of the report provides information
about growth potential, upcoming trends, and statistics of India’s electric
three-wheeler market size, along with current trends and forecasts. The report
promises to provide recent technology trends of the Indian electric three-wheeler
market and industry insights to help decision-makers to make sound strategic
decisions. Furthermore, the report also analyzes the growth drivers, challenges,
and competitive dynamics of the market.
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