First time in India’s automobile market history, have surpassed the sales of internal combustion engine-powered three-wheelers. Currently, the electric three-wheeler is estimated to hold around 59% share of the total three-wheeler market in 2022. Sales of electric three-wheeler increased from around 18,000 units sold in October 2021 to around 35,000 in October 2022. In 2020, around 90,000 units of electric three-wheeler were sold compared with around 100,000 units in 2019.
Some of the key drivers of the India electric three-wheeler market are favorable government policies and subsidies, heavy investment by automakers in EV technology, growing concerns about environmental pollution, and increased vehicle range per charge. However, factors might that might hamper the market in the coming future are a lack of standardization of charging regulations for EVs and growing concern over the disposal of drained EV batteries.
The low running cost of electric three-wheelers which offer savings of 70%-80% compared to the currently dominant gas-powered three-wheeler is the primary driver for the adoption of electric-3 wheeler for commercial use. In addition, the running cost of a petrol three-wheeler is approximately Rs. 4 per km and the electric alternative is around 0.5 per km. Moreover, electric three-wheelers are also estimated to hold a prominent share of the electric vehicles market.
Among all the states and UTs, Uttar Pradesh continued to have maximum monthly registered EV sales with a 20% share in overall sales in India in January 2022. Maharashtra had the 2nd highest sales at 12% share, followed by Karnataka (10%), Tamil Nadu (9%), Delhi (7%), and Rajasthan (7%).
Government Regulations and Norms
Some of the government policies fueling the demand for electric three-wheelers in the country are National Electric Mobility Mission Plan (NEMMP 2020), National Urban Transport Policy (NUTP), FAME I & FAME II, Draft Delhi EV policy 2018, Karnataka Electric Vehicle and Energy Storage Policy 2017, Maharashtra Electric Vehicle Policy 2018, and Telangana Draft Electric Vehicle Policy 2017, among others.
The government announced an outlay of INR 10,000 crores for Phase 2 of the FAME scheme. The target is to boost electric mobility and increase the number of electric vehicles in commercial fleets. Additionally, Government incentivizes the purchase of 500,000 three-wheelers with an outlay of INR 2,500 crores, with added incentives for manufacturers. The purchase of 7,090 electric buses with an outlay of INR 3,545 crores, 20,000 hybrids with INR 26 crores, and 35,000 four-wheelers with INR 525 crores will also be supported.
Monthly Sales Trend of Electric Three-Wheelers in India, 2021-2022
Source: RationalStat Analysis
Over the last decade, the low-speed, the India electric three-wheeler market has grown rapidly with more than 600 registered market players currently in the segment. Moreover, this rapid growth is largely attributed to non-incorporated small suppliers and is known as the unorganized sector in India.
Half of the India Electric three-wheeler market is unregulated and dominated by small players. Some of the top players operating in the market include YC Electric, Mahindra Electric Mobility, Saera, Champion, Dilli, Bestway, Unique International, Kinetic Green, Lohia Auto, Piaggio Vehicles Pvt. Ltd, Gayam Motor Works (GMW), and Atul Auto among others.
The sales of the top 7 electric three-wheeler players in January 2022 accounted for a 36% share of the entire electric three-wheelers market. YC Electric Vehicle accounted for the highest share of 9%, which was followed by Mahindra Electric Mobility (8%), Saera Electric Auto (5%), Champion Poly Plast (4%), Dilli Electric (4%), Best Way Agencies (3%), and Unique International (3%).
International and leading electric three-wheeler companies strive to establish operations in India by partnering with local companies or by setting up their own manufacturing/development unit, potentially combined with imports of specific components.
Key Market Segmentation
RationalStat has segmented the India electric three-wheeler market on the basis of fleet type, charging type, battery type, and region.
- By Fleet Type
- Passenger Fleet
- Paratransit Fleet
- Feeder Transport Fleet
- Cargo Fleet
- Courier Fleet
- Grocery Delivery Fleet
- Passenger Fleet
- By Charging Type
- Plug-in Charging
- Fixed EVSE
- Portable EVSE
- Battery Swapping
- Individual Battery Charging
- Stack Battery Charging
- Plug-in Charging
- By Battery Type
- Lead Acid Battery
- Lithium-ion Battery
- By Sales Channel
- Company Owned Dealers
- Frenchie’s Store
- Others (Third Party Dealers)
- By Demography
- TEIR I
- TEIR II
- TEIR III
- By Region
- North India
- Uttar Pradesh
- Rest of North India
- West and Central India
- Madhya Pradesh
- Rest of West and Central India
- East India
- West Bengal
- Arunachal Pradesh
- Rest of East India
- South India
- Andhra Pradesh
- Tamil Nadu
- Rest of South India
- North India
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The report is intended for India’s electric three-wheeler market manufacturers and suppliers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.