ELECTRIC THREE WHEELER MARKET IN INDIA-INTRODUCTION

India has been making headlines for past 2 years about the mass-shift to e-mobility, across two-wheeler and passenger vehicle segments but without much success. On the other hand, a segment of auto manufacturing has silently adopted e-mobility like no other and is showing no signs of slowing down, i.e. electric three-wheeler market in India or e-rickshaw as it is widely called.

 

India being a developing country, where annual per capita income was just ~$1,800 in 2018, three-wheelers are an important mode of transportation for millions of Indians. Very often, they are associated with high pollution in northern and Eastern India where single-cylinder gasoline/diesel autos are prevalent due to non-existent CNG/LPG infrastructure.

 

MARKET SEGMENTATION

 

Infographic: Electric three wheeler market in India, Electric three wheeler market in India market size, E rickshaw market in India

 

MARKET DYNAMICS

Electric three wheelers started starts gaining popularity post 2012. They have now become a viable alternative for pedal powered and gas engine powered rickshaws. The biggest reason behind growth of electric three-wheeler in India is not regulation/incentives but the low running cost (70-80% savings as compared to gas powered three-wheeler) for driver as well as passenger.

 

The buyer/driver of electric three-wheeler is expected to recover his investment in 8-9 months and the rider gets an affordable ride at Rs 10 (~$0.15) per ride. Not to mention, the added benefits of non-polluting first mile/last mile/short trip transportation, which is becoming a menace in tier-2 cities

 

During 2012-2013 when the market was in early stages of development, 100% of electric three-wheelers were powered by Lead Acid batteries but now there is a definite shift towards Li-ion batteries.

 

 

MARKET SIZE AND FORECAST

 

The electric three-wheeler market in India is estimated at ~$150 Million in 2019 and has the potential to go past $1 Billion by 2025.

 

 

SOME OF THE ELECTRIC THREE WHEELERS AVAILABLE IN INDIA -JULY 2019

Sl noOEMModelBattery(kWh)Top speed (Km/hr)Ideal Range (Kms)Price range without subsidy(USD)
1Mahindra & MahindraTreo3.7-7.425-4585-130~$2,000-$3,200
2Lohia AutoComfort4.825100~$1,800-$2.400
3Kinetic GreenDX2.12580~$1,900
4Terra MotorsY4 Alfa4.825100~$1,900
5Gayam Motor WorksUrban ET4.855110~$4,700

                                                                                                                                            Source- Dealers and company websites

 

 

OPPORTUNITY IN THE INDIAN ELECTRIC THREE-WHEELER MARKET

FOR COMPONENT MANUFACTURERS

Given the history of low R&D spending by Indian auto component manufacturers, there exists a huge gap in demand and supply for critical components like battery, motor controller, regen braking etc.

 

The domestic supplier base of gasoline/CNG/LPG powered three- wheelers is strong and mature but they are still coming to terms with emission shift to BS VI(comparable to Euro VI). Thus, very limited investment has been made on e-mobility so far. Majority of Indian Electric two and three wheelers companies are relying on Bosch for e-powertrain development.

 

The market leaders of conventional 3-wheelers (Bajaj and TVS with cumulative 80% market share) are still developing their products and that is where the biggest opportunity lies for component suppliers.

 

FOR ELECTRIC THREE WHEELER MANUFACTURERS

The market size of electric three- wheelers in India has already outgrown gasoline/CNG/LPG by 20% in FY 2019. But it wont stop there as many pedal rickshaw drivers, which are abundant in northern and eastern India(densely populated cities with narrow lanes) will shift to Electric three wheelers further augmenting the market size.

 

COMPETITIVE LANDSCAPE

The boom in electric three-wheeler market in India has resulted in many small scale, regional players entering the market. Among the major reasons for this is the substitution of complicated Internal combustion engine with e-powertrain, resulting in greater simplification of three-wheeler manufacturing.

 

The bigger players are still developing their products with superior technology and will launch them prior to April 2020 BS VI timeline.

 

 

IMPORTANCE OF BALANCED DISTRIBUTION IN ELECTRIC THREE WHEELER MARKET IN INDIA

For Electric three wheelers to do well in India, the distribution has to better than the existing market leaders. The dealers for electric three wheelers are so far concentrated in Northern and Eastern India and have almost negligible presence in the west and south.  For comparison, Bajaj (market leader of three wheelers with 50% market share) has 2,200 dealers across India. About 45% are spread across comparatively wealthier and Industrialized west and south India.

 

COMPANY PROFILES

  1. Lohia Auto
  2. Mahindra and Mahindra
  3. Terra Motors
  4. Scooters India Limited
  5. Gayam Motor Works
  6. Kinetic Green Energy & Power Solutions Ltd
  7. Vani Electric Vehicles pvt. Ltd.
  8. Udaan E Rickshaw
  9. Goenka Electric Motor Vehicles Pvt. Ltd.

 

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1. Market size of electric three-wheeler market in India and growth potential in every year (2019-2025)? Most important disruption factors in every segment
  2. Which electric three-wheeler segment (Passenger/cargo) will have highest growth and in which region?
  3. How much battery range and charging time is enough for electric three-wheeler drivers/operators in India?
  4. Electric three-wheeler battery and associated components manufacturing in India
  5. Impact of Electric three-wheeler market growth on conventional three- wheeler market
  6. Details on government schemes and legislation promoting electric three-wheeler market in India
  7. Role of Chinese imports in electric three-wheeler manufacturing
  8. OE-supplier alignment in electric three-wheeler market in India?
  9. Who are the leading distributors of electric three wheelers in India?
  10. All about new product development, new entrants, start-ups, and manufacturing plants
  11. Market share of leading players in different segments?
  12. Details on workforce shortage of skilled sales and service support for electric three-wheeler in India
  13. Potential in integration of electric three-wheelers with on-demand taxi market in India

 

 

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1Market Segmentation3
2Executive Summary5-6
3Introduction7-10
4Insights from Industry stakeholders11
5Key criteria for E-rickshaw adoption by OEMs12-13
6Raw material supply chain and E-rickshaw manufacturing in India14-15
7Pain point of dealers and distributors16-17
8New product development and innovation18-19
9Important three wheeler trends in India20-21
10Impact of growth in EV market on conventional three wheeler market22-23
11Market Size ,Dynamics and Forecast By City type29-38
12Market Size ,Dynamics and Forecast By Application29-38
13Market Size ,Dynamics and Forecast By Price39-48
14Market Size ,Dynamics and Forecast By Component49-65
15Government legislation and incentives for electric -three wheelers66-67
16Three wheeler battery manufacturing in India68-69
17Competitive Landscape70-72
18OEM-supplier relationship in Electric three-wheeler market73-74
19Company Profiles75-90
20Unmet needs and Market Opportunity for OEMs and suppliers91-97
21Conclusion98-99
225 Key predictions100
23Appendix101
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