New York, United States, Aug. 26, 2024 (GLOBE NEWSWIRE) -- As per the Latest Report by Straits Research, The global electric three wheelers market size was valued at USD 5.39 Billion in 2023 and is projected to reach USD 12.15 billion by 2032, registering a CAGR of 10.7% during the forecast period (2024-2032).
Electric three-wheelers, often known as e-rickshaws or electric trikes, are a type of three-wheeled electric vehicle (EV). These vehicles are commonly used for short-distance urban transportation and are particularly popular in densely populated Asian countries such as India, China, and Southeast Asia. Electric three-wheelers transport passengers and merchandise while being more ecologically friendly and energy efficient than gasoline or diesel-powered vehicles.
The market is expected to develop as people prefer electric vehicles to traditional vehicles powered by fossil fuels. Society is looking for environmentally beneficial modes of transportation, particularly electric three-wheeler autos, because of the rising concentration of greenhouse gases in the atmosphere. Furthermore, new startups such as Nobecars, Arcimoto, and others are thriving in the electric three-wheeler scene, increasing the market share of electric three-wheelers.
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Government Initiatives and Incentives Propel the Market Expansion
Government initiatives, incentives, and favorable regulatory regimes have helped electric three-wheeler adoption. Governments worldwide promote electric vehicles to reduce greenhouse gas emissions and environmental issues. India supports the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) project. The Indian government incentivizes manufacturers, customers, and other stakeholders to promote electric vehicles, notably three-wheelers. This phase encouraged public and shared transportation electrification to sustain five lacking e-3 Wheelers by 2023 through demand incentives.
The Scheme also promotes charging infrastructure. Government refunds and discounts of roughly Rs 15,000 are available to Indian electric three-wheeler buyers in 2023. These subsidies lower electric three-wheeler prices. According to SIAM, electric three-wheeler sales in India have surged dramatically recently. In April-March 2023, 4,88,768 three-wheelers were sold. The electric three-wheeler market is expected to change due to government incentives.
Urban Mobility Solutions Creates Tremendous Opportunities
Electric three-wheelers offer practical, eco-friendly, and effective last-mile connectivity in busy cities, solving urban mobility issues. Sustainable urban transportation options, especially for short-distance commuting, are in demand as cities become denser. Electric three-wheelers are popular urban mobility options in India, especially in Delhi. E-rickshaws are a popular, sustainable, and affordable urban transportation option.
China has also seen a rise in electric three-wheelers, particularly transport tricycles. Beijing and Shanghai use these trucks for last-mile delivery. Alibaba's Cainiao Network and JD.com use electric cargo tricycles for delivery. China had 3,500,000 electric three-wheelers sold and in operation by 2022, trailing India. The Chinese government promotes electric three-wheelers for urban logistics. Countries exhibit the global trend of urban transportation solutions using electric three-wheelers. They provide efficient and sustainable transportation alternatives to gasoline-powered cars in heavily populated urban areas.
Regional Insights
Asia-Pacific has become a growing electric three-wheeler market. The region dominates the market due to its significant demographic growth of middle- and lower-middle-class incomes and its tendency to electrify cars. Other transportation is electrified besides four-wheelers. Since its introduction, shared electric-assist bicycles, scooters, and e-three-wheelers have increased over this region.
Additionally, India has the largest market share, followed by China, Vietnam, and several developing nations. Regional governments are also reducing pollution. In December 2019, the Indian government began phase II of the FAME India plan to electrify public and shared transportation and incentivize e-buses and e-3 wheelers. Thailand's Energy Conservation Fund (ECF) has provided THB 106 million to encourage tuk-tuk operators to switch from LPG to electric cars. Terra Motors and other regional competitors are launching electric three-wheelers for passenger and cargo transport in India, Bangladesh, and Nepal to increase market share.
Europe holds a significant market share. Major vehicle manufacturers are rapidly investing in electric mobility, which is expected to boost European market growth. Additionally, these firms are exploring and developing new electric transportation technology. The Horizon 2020-funded EU-LIVE R&D program develops mobility solutions and models for L-category cars. E-rickshaw manufacturers invest heavily in R&D to create innovative mobility solutions. European markets advanced due to advanced cars. These methods encourage market growth further.
Furthermore, Germany dominates the market due to its high demand for light-duty electric commercial vehicles. Increased public awareness of the national purchase incentive scheme and long-term government aims are changing the German electric three-wheeler business. The German government said in December 2019 that it would stop selling gasoline-powered cars by 2040.
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Key Highlights
- The global electric three wheelers market size was valued at USD 5.39 Billion in 2023 and is projected to reach USD 12.15 billion by 2032, registering a CAGR of 10.7% during the forecast period (2024-2032).
- The vehicle types segment is further classified into Passenger Carriers and Load Carrier. Passenger Carrier has the biggest market share.
- The market is divided into two segments based on battery type: lithium-ion and lead acid. Lithium-ion is a key market contributor.
- The Power segment further divides the market into Up to 1000 W, 1000 W to 1500 W, and Above 1500 W. The market expansion was headed by 1000 W to 1500 W.
- Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. Asia-Pacific is the most significant global market shareholder and is estimated to grow at a healthy CAGR over the forecast period.
Top 12 Competitive Players In Electric Three Wheelers Market
- Mahindra Electric Mobility (India)
- Piaggio Group (Italy)
- Terra Motors (Japan)
- Kinetic Green Energy & Power Solutions (India)
- Gayam Motor Works (India)
- Lohia Auto Industries (India)
- Omega Seiki (India)
- E-tuk (U.S.)
- Bodo Vehicle Group (China)
- Atul Auto Limited (India)
- YC Electric Vehicle (India)
- and Saera Electric Auto (India)
Recent Developments
- In April 2023, Omega Seiki Mobility (OSM) and cKers Finance partnered to provide retail financing for electric three-wheelers.
- In August 2023, Keto Motors and Saera Electric announced a strategic collaboration and the launch of the 'Saera Keto joint venture' to become a key participant in India's electric three-wheeler (E3W) market.
Segmentation
By Vehicle Type
- Passenger Carrier
- Load Carrier
By Battery Type
- Lithium-ion
- Lead Acid
By Power Type
- Up to 1000W
- 1000 W to 1500 W
- Above 1500 W
By Region
- North America
- Asia-Pacific
- Europe
- The Middle East and Africa
- Latin America
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