Electric Three Wheeler Market in India 2024-2030

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    ELECTRIC THREE WHEELER MARKET IN INDIA

     

    KEY FINDINGS

    • Electric 3 wheeler will substitute cycle rickshaws first and then auto rickshaws
    • Since many auto rickshaws in Tier 1 cities run on non-conventional fluids which are cheaper on running basis will require special incentives for the market to consider E rickshaw as a viable option due to higher buying price
    • Right now the market is unorganized as well as technologically immature as necessary R&D regarding the safety and utility is not conducted. The price factor will increase as advanced technology in introduced which might not be preferred by the rickshaw drivers
    • The shift to electric rickshaws offer them increased trips as due to lower fatigue and faster rides. The cost for the passengers have not changed much but there is increased profits as scale is 2x higher than a cycle rickshaw
    • Delhi, Kolkata, and Jaipur will be some of the target markets for e rickshaws and are already seeing a drastic increase in electric rickshaw presence

     

    INTRODUCTION TO INDIAN ELECTRIC THREE-WHEELER MARKET

    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.

     

    INDIAN ELECTRIC THREE-WHEELER MARKET SEGMENTATION

     

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

     

    INDIAN ELECTRIC THREE-WHEELER 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.

    • Delhi government released Rs. 30,000 subsidy each for 6,000 e-rickshaw owners
    • In Kerala Rs 30,000 subsidy is offered for electric 3 wheelers. Shigan, Mayuri, Kinetic, Mahindra, Hooghly and Victory, Kerala Automobiles Limited (KAL) have launched new models in Kerala. Battery manufacturing company Hykon also has announced an e-auto for the Indian market
    • Gujarat announced Rs 48,000 to be given for three-wheeler e-rickshaw for individual and institutional beneficiaries. This subsidy will be given for 5,000 e-rickshaw.
    • Governments are trying to promote in house manufacturing of electric three wheelers especially among new companies
    • FAME has set up subsidies for 5,00,00 electric three wheelers in its Rs 10 crore budget. FAME 2 scheme also retained the subsidies for electric three wheelers

     

    COVID IMPACT ON INDIAN ELECTRIC THREE-WHEELER MARKET

    The transportation industry has been in a terrible shape as public transportation ran at limited capacity and trains are yet to resume to pre pandemic levels.

     

    Due to Covid, a lock down was imposed across the country which stopped the electric- rickshaw usage. As per regulations, social distancing was enforced which decreased number of passengers per ride. Similar to other industries, there were major losses among the electric three wheeler sellers as well as electric three wheeler drivers as movement was decreased overall.

     

    Since a lot of tourist destinations utilise cycle rickshaw and electric rickshaws and tourism saw a downfall across the country, there was a major loss among the users. Delhi government offered a 1 type relief of Rs 5,000 to e rickshaw drivers to help them combat losses incurred

     

    INDIAN ELECTRIC THREE-WHEELER 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 

    Sl no OEM Model Battery(kWh) Top speed (Km/hr) Ideal Range (Kms)
    1 Mahindra & Mahindra Treo 3.7-7.4 25-45 85-130
    2 Lohia Auto Comfort 4.8 25 100
    3 Kinetic Green DX 2.1 25 80
    4 Terra Motors Y4 Alfa 4.8 25 100
    5 Gayam Motor Works Urban ET 4.8 55 110
    6 Omega Seiki Sun Ri 6 45 70-80
    7 Piaggio Ape E-City 4.5 45 68
    8 Altigreen E3W 53 120

                                                                                                                                              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.

     

    INDIAN ELECTRIC THREE-WHEELER MARKET 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.

     

    Delhi has a largely unorganized electric 3 wheeler market as the suppliers for electric 3 wheelers are all across town with assembly of parts and tie ups with fabricators to provide the body. The specs are similar across brands but there are more than 10 local brands for electric three wheelers alone. Most of the suppliers in Delhi only assemble kits received from China and other regional manufacturers. Domestic brands will try to gather and organize this market similar to the regular 3 wheeler market.

     

    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.

     

    INDIAN ELECTRIC THREE-WHEELER MARKET 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. How many electric three-wheeler are manufactured per annum in India? Who are the sub-component suppliers in this regions?
    2. Cost breakup of a India  electric three-wheeler and key vendor selection criteria
    3. Where is the electric three-wheeler manufactured? What is the average margin per unit?
    4. Market share of India electric three-wheeler market manufacturers and their upcoming products
    5. Cost advantage for OEMs who manufacture India electric three-wheeler in-house
    6. key predictions for next 5 years in India electric three-wheeler market
    7. Average B-2-B  electric three-wheeler market price in all segments
    8. Latest trends in  electric three-wheeler market, by every market segment
    9. The market size (both volume and value) of the electric three-wheeler market in 2023-2030 and every year in between?
    10. Production breakup of electric three-wheeler market, by suppliers and their OEM relationship
                  To request customization, Please write to us at [email protected]
    1 Market Segmentation 3
    2 Executive Summary 5-6
    3 Introduction 7-10
    4 Insights from Industry stakeholders 11
    5 Key criteria for E-rickshaw adoption by OEMs 12-13
    6 Raw material supply chain and E-rickshaw manufacturing in India 14-15
    7 Pain point of dealers and distributors 16-17
    8 New product development and innovation 18-19
    9 Important three wheeler trends in India 20-21
    10 Impact of growth in EV market on conventional three wheeler market 22-23
    11 Market Size ,Dynamics and Forecast By City type 29-38
    12 Market Size ,Dynamics and Forecast By Application 29-38
    13 Market Size ,Dynamics and Forecast By Price 39-48
    14 Market Size ,Dynamics and Forecast By Component 49-65
    15 Government legislation and incentives for electric -three wheelers 66-67
    16 Three wheeler battery manufacturing in India 68-69
    17 Competitive Landscape 70-72
    18 OEM-supplier relationship in Electric three-wheeler market 73-74
    19 Company Profiles 75-90
    20 Unmet needs and Market Opportunity for OEMs and suppliers 91-97
    21 Conclusion 98-99
    22 5 Key predictions 100
    23 Appendix 101
     
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