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The Electric Three-Wheeler Market is projected to grow with a CAGR of more than 20 % during the forecast period.
- The market is primarily driven by the factors such as strict government norm for pollution control, increasing awareness about harmful effects of emissions from gasoline and diesel vehicles and increase in adoption of electric vehicles.
- The average cost of operation and maintenance of electric three-wheelers are substantially low as compared to conventional three-wheelers.
- However, the low range of distance covered, and heavy battery pack are the areas of concern for the manufacturers of three-wheeler vehicles. As an electric three-wheeler covers around 125-130 kms with full charged battery as compared to 200-220 Kms covered by conventional vehicles on a full tank of fuel.
Key Market Trends
Passenger Carrier Segment expected to occupy significant market
The medium and lower income level people are adapting electric three wheelers for daily commuting purpose as they have low fares as compared to conventional fuel vehicles and other modes of transports. Also, with the increasing pollution level of urban cities, governments are encouraging use of electric vehicles and for that they are spending on a huge scale to improve the infrastructure for charging stations and providing subsidies and benefits to electric vehicle’s buyers. For instance, in December 2019, the government of India announced the phase-II of FAME India scheme, which focus on supporting electrification of public & shared transportation, and aims to support e-buses, e-3 wheelers through incentives.? In addition, creation of charging infrastructure will be also supported to address range anxiety among users of electric vehicles. The purchase cost of electric three-wheelers is on-par to the conventional fuel similar vehicles due to subsidies. Hence, with a small investment one can own an electric three-wheeler and this can be an employment option for him. These factors are expected to help the market grow.
Asia-Pacific Expected to be the Largest Market
Over the past few years, the Asia-Pacific region has turned out to be an emerging market for electric three-wheeler. The region is the most populated region in the world accounting for 60% of the total population. During the year 2018-19, when all other auto segment witnessed a slow demand growth as compared to previous year, electric three-wheeler sales were up by almost 21% in India itself.
The region has many developing nations where the average income of people is low, and these people opt for transport services which are affordable. A petrol-powered three-wheeler has a running cost of about INR 4 per km, while the running cost of its electric alternative is around INR 0.5 per km. Hence, the fare on customers is also relatively less. These vehicles in the region are also used as shared transport.
The electric three-wheeler segment in the region is characterized of a few major players such as Mahindra electric and Piaggio. These major players are investing heavily in research and development of the product to increase the range of the vehicle. For instance, in February 2020, Mahindra electric unveiled Treo 2.0, which is an electric three-wheeler with solar roof which charges the battery and increases the range of the vehicle. The solar roof can increase the range of the vehicle by 26-30 Kms.
The Electric 3-Wheeler Market is highly fragmented, with several players accounting for a smaller portion of market share. Some of the prominent companies in the electric three-wheeler market are Mahindra Electric, Piaggio, Bodo EV, Kinetic Green Energy solution and others. These players are investing heavily in research and development of electric three-wheeler in increasing the load capacity along with the driving range of the vehicle. For instance, in February 2020, Omega Seiki Private Limited introduced Singha and Singha Max which runs on electric power to cater to the needs of the B2B and e-commerce industry. These vehicles are powered by Li-ion battery and have a range of 100 kilometers on a full charge, while carrying loads of up to 500 kilograms. The two cargo vehicles have top speeds of 45 kmph and 60 kmph, respectively.
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