According to a study conducted recently by the strategic consulting and market research firm, BlueWeave Consulting India electric three-wheeler market has reached USD 636.9 million in 2020 and is anticipated to reach USD 1,845.1 million by 2027, at a CAGR of 16.3%, during the forecast period (2021-2027). The growing concern over air pollution is pushing the automobile industry to reduce its carbon footprint, bolstering the need for electric three-wheelers in the market. Additionally, the market growth is led by the increasing need to curb the air pollution levels and the rising incentive schemes by the government to support manufacturing as well as the use of electric three-wheelers. Moreover, consistently increasing affordability of electric three-wheelers are also boosting their adoption across the country. Additionally, increasing investments by electric vehicle manufacturers to develop more advanced, efficient, and affordable electric three-wheelers is likely to boost the growth of India's electric three-wheeler market in the coming years.
Door-to-Door Service by Electric Three-Wheeler Drive the Market Growth
Electrification of three-wheelers is essential in many large and medium Indian cities for reducing air pollution and providing sustainable mobility solutions, as well as for meeting transportation needs.With a carrying capacity of three to seven passengers, auto-rickshaws and e-rickshaws provide mobility solutions for short trips of up to 12 km, as well as first and last-mile connectivity. They also offer feeder services to the main haul public transport. The electric three-wheelers provide unparalleled personalized door-to-door services and last-mile connectivity within the cities. They often act as feeders to the public transportation system in metropolitan cities and as a preferred mode of transportation for short trips in small and medium cities. This mode fills the accessibility vacuum left by India's insufficient public transportation system.
Launch of Lucrative Initiatives by Government Augmenting the Market Growth
Because of government funding and incentives under the country's "FAME India" schemes, which promote faster adoption of electric three-wheelers, the Indian electric three-wheeler market is rapidly growing. The electric three-wheeler market in India is expected to rise in the coming years, as the market anticipates a more hospitable environment for the industry's development under "FAME-II."According to the new standards (FAME II), battery-powered three-wheelers with a minimum range of 80 km and a top speed of 40 km/h is eligible for the subsidy. The new standards are expected to significantly boost the segment. Over the projected period, the Indian electric three-wheeler market is expected to be propelled by the rising number of electric three-wheeler manufacturers and their rising emphasis on research and development to produce technologically advanced and affordable electric three-wheelers.