Electric Three Wheeler Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Carrier and Goods Carrier), By Power Type (Up to 1000 W, 1001 W to 1500 W, and Above 1500 W), By Battery Range (Up to 100 Km, and Above 101 Km), By Component (Battery Pack & High Voltage Component, Motor, Brake, Wheel & Suspension, Body & Chassis, and Low Voltage Electric Component), and Regional Forecast, 2024 – 2032

The global electric three wheeler market size was valued at USD 2.71 billion in 2023. The market is projected to grow from USD 3.41 billion in 2024 to USD 12.81 billion by 2032, exhibiting a CAGR of 18.0% during the forecast period.

An electric three wheeler, also known as an electric rickshaw or e-rickshaw, is an electrically motorized three-wheeler used for carrying passengers and other utilities. It comprises a rechargeable battery that is used for powering the vehicle's electric motor. It is considered a public transportation medium in urban and suburban regions.

Electric three wheeler is available in various designs and configurations, from passenger-caring models to cargo types. Electric three-wheelers are commonly used for short-distance transportation and are popular in urban and rural areas for different applications such as passenger transport, cargo delivery, and commercial use. They are often seen as a cost-effective and efficient mode of transportation. The market for electric three-wheelers has been growing rapidly in recent years due to rising awareness about environmental issues, government incentives for EVs, and improvements in battery technology and charging infrastructure.

The COVID-19 pandemic disrupted the global supply chain and the production and distribution of electric three wheelers. OEMs faced temporary shutdowns or reduced production capacity due to lockdown measures and workforce limitations. This disruption led to delays in the delivery of e-rickshaw, affecting the market growth.

Electric Three Wheeler Market Trends

Growing Digitalization in Electric Three Wheelers is an Ongoing Trend in the Market

The electric three wheeler market witnessed significant technological advancements. It includes improvements in battery technology, longer driving ranges, faster-charging infrastructure, and enhanced motor efficiency. These advancements aimed to address potential buyers' range anxiety and charging time concerns. The vehicle is equipped with digital features and technologies to enhance user experience and provide added convenience such as smartphone connectivity, GPS navigation, and real-time tracking. These digital solutions aim to improve efficiency, productivity, and customer satisfaction. For instance, in September 2022, Omega Seiki Mobility (OSM) launched its new vehicle, ViCKTOR, with best-in-class range. The company claims that this vehicle comes with a range of 250 KM (Single Charge), which is the highest in the e-rickshaw segment. OSM delivers the vehicle in two body options; one is closed carried, and the other one is an open carrier. It has an ED-coated metal body, a wiping system, and a lockable and spacious glove box. In addition, this vehicle also has a reverse buzzer, hazardous indicator, advanced GPS, spare wheel provision, and many other features. These developments drive the market growth during the forecast period.

Electric Three Wheeler Market Growth Factors

Rising Adoption of Electric Three Wheeler for Last Mile Delivery to Boost the Market Growth

As the global demand for e-commerce and online shopping continues to surge, the need for efficient last-mile delivery solutions has become more pressing than ever. In this context, the rising adoption of electrically driven three-wheelers as a sustainable mode of transportation for last-mile delivery is gaining significant traction. For Instance, in September 2022, Dandera Ventures has launched the OTUA-electric cargo three-wheeler. The vehicle is targeted at last-mile delivery and logistic use. The vehicle measures 3,670mm in length, 1,500mm in width, and 2,160mm in height. It features LED headlamps, and the driver cab is compatible with air conditioning. The cargo area is 1,960mm in length and has a load capacity of 900 kg.

In many urban areas, e-rickshaw play a crucial role in providing affordable and efficient last-mile connectivity. They are often used for short-distance transportation, delivery services, and as taxis or rickshaws. As urbanization continues and cities face congestion and pollution challenges, e-rickshaw offer a practical solution for sustainable mobility.

RESTRAINING FACTORS

Higher Cost and Lack of Standardization in Charging Infrastructure May Hamper Growth

The cost of three-wheeler electric vehicles is significantly higher than fossil fuel-powered three-wheelers due to the high battery cost. Therefore, middle and lower-middle-class consumers in developing countries are still more inclined toward conventional fuel vehicles. Thus, replacing the batteries may further increase their operating costs, which, in turn, is anticipated to hinder market growth in the near future.

Also, the need for charging infrastructure and the lower presence of charging stations in developing countries are likely to restrain market growth. The absence of standardization and dissimilarities in charging capacity are the main disadvantages of the market. In many regions, the charging infrastructure is still in the earlier stages of development, with limited public charging infrastructure. Different countries have their set standards such as CHAdeMO (Japan), CCS (Europe, America, and Korea), and GB/T (China).

Electric Three Wheeler Market Segmentation Analysis

By Vehicle Type Analysis

Passenger Carrier Segment to Dominate Backed by Rising Middle-Class Population

Based on vehicle type, the market is divided into passenger carrier and goods carrier. The passenger carrier segment held a significant share of the global market. This dominance is attributed to the high growth rate, especially in developing countries that comprise a larger middle-class population that prefers public transport over private vehicles for daily commuting. E-rickshaw is more economical and environment-friendly; as a result, companies/consumers are more likely to use them for last-mile delivery applications in many regions. The rising demand for carriage-carrying vehicles at a minimal distance is propelling to grow the vehicle demand in the coming years.

The global share of the goods carrier E-3Ws is also growing significantly due to the expansion of the industrial sector and the recognition of e-rickshaw as economical, eco-friendly, and lightweight commercial vehicles for intra-city transportation of goods and other utilities.

By Power Type Analysis

1001 W to 1500 W Segment is Expected to Hold the Largest Market Share Owing to its Benefits

Based on power type, the market is segmented into up to 1000 W, 1001 W to 1500 W, and above 1500 W. The 1001 W to 1500 W segment accounts for the largest global electric three wheeler market share owing to their operational cost benefits. The growth is attributed to the development of high-energy-powered vehicles by prominent manufacturers. The increasing inclination toward electrification of vehicles and the growing demand for E-3Ws, especially in developing countries, is compelling manufacturers to invest in R&D and improve the power capacity of vehicles to meet the ever-increasing requirements.

Also, rapid industrialization opens opportunities for goods carrying E-3Ws with high energy capacity that can allow these vehicles to travel long distances for transporting loads and goods. Furthermore, the increasing demand for high-speed Electric 3-wheelers and the entry of conventional three-wheeler manufacturers into the EV market are expected to significantly boost the electric three wheeler market growth during the forecast period.

By Battery Range Analysis

Increasing Adoption of Up to 100 km Battery Range of Vehicles Boost the Market Growth

Based on battery range, the market is projected into up to 100 km and above 101 km. Up to 100 km to lead the segment as e-rickshaw are often used for short-distance commute and local transportation, particularly in populated areas or developing countries. The growth is attributed due to a 100 km battery range providing sufficient coverage of most daily transportation needs at an affordable price; this development drives the market growth. The above 101 km segment is the fastest growing during the forecast period 2023-20230 due to improvements in battery technology; the rapid technology has been advancing rapidly. This has shown the development of more efficient and higher-capacity batteries, allowing for a longer electric vehicle range.

By Component Analysis

Battery Pack & High Voltage Component Holds Maximum Market Share Due to Reducing Cost

Based on component, the market is divided into motor, brake, wheel & suspension, body & chassis, battery pack & high voltage component, and low voltage electrical component. The battery pack & high voltage component segment holds the maximum share due to major cost contributions and is a main supply for the vehicle's functioning. The price/value of the battery pack will decrease significantly in the coming years. Moreover, the major manufacturers are focused on developing traction batteries & high voltage components that help to enhance performance and reduce the cost of the traction battery pack & other components, which will drive the market growth during the forecast period.

The motor segment holds the second largest share due to its adoption in EVs. The growth of this segment is due to increased demand for EVs by major countries and rising technological advancement by OEMs.

REGIONAL INSIGHTS

The global market is analyzed across North America, Europe, Asia Pacific, and the Rest of the World.

The Asia Pacific electric three wheeler market size was valued at USD 2.36 billion in 2023. The region dominates the market owing to the high demographic growth of larger middle and lower-middle-class income population and increasing inclination toward electrification of vehicles in this region. Transportation modes other than four-wheelers are also electrifying. Since, its introduction, electric mobility has rapidly expanded with shared electric-assist bicycles, electric scooters, and e-three-wheelers in several parts of this region. India accounts for the largest market share, followed by China, Vietnam, and other developing countries. Government initiatives and subsidies were implemented to promote E-3Ws in the country for automotive emission control. Also, legal organizations are providing subsidies and incentives for EVs.

Europe holds the second-largest global market share due to prominent automotive key players and the rapid adoption of vehicle electrification in this region. E-rickshaw manufacturers are investing exponentially in R&D for innovative, technologically advanced mobility solutions. Advanced vehicles in European countries are responsible for boosting the market in Europe.

List of Key Companies in Electric Three Wheeler Market

Companies Focus on a Wide Range of Product Offerings to Gain Competitive Edge

Mahindra Electric Mobility Limited, Piaggio Group, and YC Electric Vehicle are major players operating in the market. The three wheeler manufacturers focus on providing technologically advanced electric three wheelers for various vehicle customers globally.

Mahindra Electric Mobility Limited is a leading company and pioneer in the Indian E3V competitive landscape. The company has created a comprehensive roadmap to launch a robust electric vehicle ecosystem by largely investing in innovating next-gen technologies and globally acknowledged products to drive sustainable mobility. The company delivers a wide range of electric vehicles and will increase its range further by developing new high-end electric powertrains, systems integration, motor controllers, and battery technology. The next-generation EV models will offer higher speeds, a longer range, and high-tech connected car technologies to enable advanced mobility solutions.

List of Key Companies Profiled

• Mahindra Electric Mobility Limited (India)


• Piaggio Group (Italy)


• Terra Motors (Japan)


• Kinetic Green Energy & Power Solutions Ltd. (India)


• Gayam Motor Works Pvt. Ltd (India)


• Lohia Auto Industries (India)


• Omega Seiki Pvt. Ltd (India)


• E-tuk (U.S.)


• Bodo Vehicle Group Co. Ltd (China)


• Atul Auto Limited (India)


• YC Electric Vehicle (India)


• Saera Electric Auto Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Bajaj Auto unveiled its first three-wheeled Passenger & Cargo. Bajaj Electric Rickshaw can be used both by passenger and cargo vehicles. The new electric three wheeler by Bajaj will be suitable for passenger and cargo vehicles, leading to the connection between passengers and cargo goods.


• February 2023: Piaggio Vehicles announced the entry of its electric three wheeler Ape Electrik in the Philippines for last-mile mobility. The vehicle will be manufactured at PVPL's Baramati manufacturing facility in Maharashtra. For Piaggio Vehicles, entry into the Philippines is a stepping-stone toward accelerating the adoption of EVs worldwide and a sustainable planet.


• October 2022: Piaggio Vehicles Pvt. Ltd. signed a partnership with Common Service Centers(CSC) Special Purpose Vehicle to develop its three-wheeler business network through Village Level Entrepreneurs (VLE). CSC scheme is the project under the Digital India Programmed initiated by the Ministry of Electronics and Information Technology, Government of India.


• September 2022: Omega Seiki signed a contract with Porter, an intra-city logistics company, to deploy over 5,000 electric three wheelers in India by 2023. The OSM Rage+ EVs will further expand Porter’s fleet to cater to the ever-growing demand for last-mile delivery solutions. Omega Seiki has over 1000 EVs as a part of its fleet and plans to expand its EV fleet by 5x by the end of 2023.


• August 2022: Mahindra Electric Mobility Ltd. launched its all-new cargo electric three wheeler Zor Grand. Mahindra received 12000+ bookings through strategic Memoranda of Understanding with leading logistic players such as Mahindra Logistics, Magenta EV Solutions, MoEVing, EVnow, Yelo EV, Zyngo, and more.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading market players, competitive landscape, and vehicle type. Besides, the report includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION