Electric Three-Wheeler Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Electric Three-Wheeler Market Research Report, Battery Type, Driving Range, Vehicle Type, and Region - Forecast till 2027” the market value is predicted to reach USD 5.9 Billion by the end of 2027 with registering a CAGR of 11.10% during the forecast period.
Preference for clean modes of transportation and the adoption of clean fuels can drive market growth. The large number of initiatives undertaken by vehicle manufacturers and the low costs of batteries can be used in persuading customers. Tax incentives and subsidies can attract prospective customers in countries with three-wheeler usage such as China, India, and other Asian countries.
Domestic initiatives commenced by nations to encourage self-reliance and localized production can influence the market demand significantly. The Make in India initiative has led to domestic designs of vehicles focusing on safety, range, and charging capacity. For instance, the new range of e3Ws by Omega Seiki claims a low running cost and huge loading capacity. Replacement of IC engines with EV engines can bolster the market demand as companies foray into B2C and B2B segments. Awareness campaigns aimed at audiences in Africa and Asia and the transition of automotive industries to electric vehicles can expand the market scope over the forecast period.
New product launches and subsidies provided by governments to make the switch from fuel-based vehicles can incentivize electric three-wheeler manufacturers. Targeted marketing at vegetable and fruit vendors, garbage collection, e-commerce delivery, and gas cylinders can augur favorably for the market.
The COVID-19 outbreak has severely affected the pipeline of supplies of various industries with the electric vehicle being hit owing to trade embargoes. But the electric three-wheeler market may face positive growth owing to subsidies provided by governments to ease the sales of electric vehicles and installation of charging infrastructure. Moreover, the need for affordable vehicles during the pandemic may favor market growth.
The Indian government has allowed the sale of E3Ws without a functioning battery. This can pave the way for battery manufacturers to offer a higher capacity on batteries. Battery swapping can lead to the setup of battery plants owing to the compact and huge capacity of lithium-ion batteries. It can also provide a similar experience of refueling at fuel pumps. The initiative by large corporations such as Big Basket, Amazon, Grofers, and Flipkart to procure e-rickshaws for last-mile delivery by 2025 can prove lucrative for the electric three-wheeler market.
Leasing business models have been launched by companies to attract prospective clients. Recently, Etro, an Indian electric vehicle startup has launched a cargo three-wheeler, EV “Touro” Mini. It is available on lease to clients at an affordable monthly rate.
By battery type, the lithium-ion segment is expected to dominate the global electric-three-wheeler market. This is credited to the large capacity of the battery and its availability in various ranges.
By driving range, the 50-100 miles segment is expected to capture the largest market share over the forecast period. Improved battery capacities and large distances covered by e-rickshaws can drive segment growth.
By vehicle type, the passenger carrier segment is bound to register 11.53% CAGR over the forecast period. This is credited to changing policies pertaining to emissions and the introduction of production-linked incentive (PLI) schemes. The need for affordable modes of transport in large cities can drive the segment growth. On the other hand, the utility/goods carrier segment is bound to display a remarkable growth rate during the forecast period owing to the transport of goods and proxy carriers for e-commerce companies.
APAC is pegged to dominate the electric three-wheeler market owing to immense potential in China and India. The use of three-wheelers for transportation of goods and customers can drive the market demand. The region accounted for 97.6% market share in 2019 and expects to register 11.16% CAGR over the forecast period. High sales of e-rickshaws and unorganized players selling electric three-wheelers can be lucrative for the global market. Changes in pollution standards and adherence to performance benchmarks culminate in subsidies for electric vehicle manufacturers. The low total cost of ownership by procuring electric three-wheelers in comparison to its fuel-based counterparts can favor the market.
Europe can be a viable market for electric three-wheelers owing to the sustainable goals of countries and commitment to lower carbon emission levels. The shift to the electrification of infrastructure and modes of transportation can be lucrative for the global market. Adherence to EPA regulations and mandates by vehicle manufacturers can bode well for the market.
Subsidies and Incentives to Boost Demand in Global Electric Three-wheeler Market
The global electric three-wheeler market will perform exceptionally owing to the replacement and scrappage of old vehicles. Adherence to new emission policies and changing standards of noise and emissions can drive the market demand. Commitment by governments to shift from fossil fuels and establishing vehicle charging infrastructure and battery manufacturing plants can bode well for the market.
Segmentation of Market covered in the research:
Information By Battery Type (Lithium-Ion, Nickel-Metal Hydride, Lead-Acid and others), By Driving Range (Less Than 50 Miles, 50–100 Miles and above 100 Miles), By Vehicle Type (Passenger Carrier and Utility/Goods Carrier) and Region.