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.
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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