Asia Pacific Electric Three-Wheeler Market by Motor Power (Below 1000 W, 1000–1500 W, 1500 W), Battery Capacity (Below 3 kWh, 3-6 kWh, 6 kWh), End-Use (Passenger Carrier, Load Carrier), Range, Battery Type, Payload Capacity & Country - Global Forecast to 2028
[260 Pages Report] The Asia Pacific electric three-wheeler market is projected to grow from USD 813 million in 2023 to USD 892 million by 2028, registering a CAGR of 1.9%. Government policies have encouraged the production of electric three-wheelers, making them more accessible and affordable. Environmental concerns related to air pollution have also increased the demand for electric three-wheelers, which produce zero emissions. Technological advancements have improved the reliability and efficiency of electric three-wheelers, making them a more attractive alternative for customers. The rise of e-commerce and home delivery services has also led to an increased demand for cost-effective and efficient transportation solutions.
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Market Dynamics:
Driver: Low operating and maintenance costs
Electric three-wheelers entail low operating costs as petrol and diesel are eliminated. They are eco-friendly battery-operated three-wheelers offering better economy and lower operating & maintenance costs than internal combustion engine (ICE) three-wheelers. Manufacturers are working on the development of three-wheelers that have a higher range than the current models. Compared to the price of gasoline or diesel fuel, the cost of electricity to charge an electric three-wheeler is far lower. Also, electric three-wheelers require less maintenance and repairs than conventional vehicles as they have fewer moving components, which minimizes their operating cost.
Restraint: Low number of charging stations
The lack of proper charging infrastructure is expected to be the largest restraint for the electric three-wheeler market in Asia Pacific. Most of the countries in the region have undeveloped EV charging infrastructure, which is crucial for the growth of the electric three-wheeler market. The lack of adequate power infrastructure and high upfront costs may hinder the development of EV charging infrastructure in the region. However, the Government of India's Phase II of the FAME scheme has created opportunities for EV growth through demand incentives and charging infrastructure programs.
Opportunity: Automobile manufacturer- and customer-oriented policies to promote sales
The Asia Pacific region is expected to witness growth in electric three-wheeler sales due to increasing support from governments. Several countries are acknowledging the importance of transitioning to electric vehicles to decrease pollution levels caused by traditional automobiles, and China and India are already taking steps in that direction. The Phase II of the FAME scheme launched by the Government of India in April 2019, offers a uniform subsidy of 10,000 per kWh to support half a million three-wheelers. Other countries are also expected to introduce such regulations and policies in favor of electric three-wheelers in the future to boost their sales. Manufacturers are also likely to receive due exemptions in taxes and imports/exports, resulting in the growth of the Asia Pacific electric three-wheeler market, thereby encouraging EV adoption.
Challenge: Limited battery capacity
Although electric three-wheelers are more energy-efficient than conventional three-wheelers, they still do not meet the design and performance standards. One of the most significant challenges for this market is the lack of consumer attention because of unappealing design and average performance. The size of the vehicle also impacts the battery capacity. Smaller vehicles may require a smaller battery to operate them, whereas bigger electric three-wheelers often require larger batteries with higher capacity. Moreover, motor efficiency influences an electric three-wheeler's ability. Motors with higher efficiency can draw more power from the battery, thus decreasing the overall battery capacity. The batteries of current electric vehicles have low capacities and cover limited distances per charge. The performance and service life of batteries directly affect the performance and cost of electric vehicles.
Asia Pacific Electric Three-Wheeler Market Ecosystem
The ecosystem analysis highlights various players in the Asia Pacific electric three-wheeler market ecosystem, which is primarily represented by raw material suppliers, battery manufacturers, OEMs, and charging infrastructure providers. Some major electric three-wheeler OEMs are Mahindra & Mahindra Ltd. (India), Atul Auto Ltd. (India), Piaggio Group (Italy), YCE Electric (India), and Kinetic Engineering Limited (India).
Above 1,500 motor power to be the fastest growing segment during the forecast period
Electric three-wheelers with above 1,500 W motor power are expected to grow faster than other segments due to their higher energy efficiency and increasing demand for high-performance electric three-wheeler load carriers. Motor power is an important deciding factor in this shift as the synergy of motor power with the system helps run electric three-wheelers. Motors with power above 1,500 W are used mostly for electric 3-wheeled load carriers. These motors usually require frequent start/stop, a high rate of acceleration/deceleration, high-torque low-speed hill-climbing, low-torque high-speed cruising, and a very wide speed range of operation. They are more energy-efficient and have a heavy load-carrying capacity.
Lead-acid Battery to be the largest segment during the forecast period
Lead-acid Battery to be the largest segment during the forecast period. The affordable price of lead-acid batteries is the prime reason for their mass adoption in the electric three-wheeler market. Lead-acid batteries are commonly used to electric power three-wheelers due to their affordability and availability in the market. These batteries offer high output capacity and are powerful, making them attractive to consumers. Sri Lanka, Bangladesh, Nepal, and India have a high penetration of lead-acid batteries in the electric three-wheeler market. The growing demand for last-mile transportation, coupled with reducing battery prices, has led to increased sales of electric three-wheelers for passenger and load-carrying services.
India is expected to be the largest market by volume during the forecast period
India is expected to be the largest market in the Asia Pacific region due to its favorable government policies supporting the adoption of electric three-wheelers. In August 2020, the Indian government introduced the new Delhi Electric Vehicle Policy 2020, intending to increase EV adoption in the national capital. The new policy led to tax waivers, charging and swapping infrastructure establishment, a battery cycling ecosystem, and the creation of a non-lapsable State EV Fund in the country. India already has a well-established market for three-wheelers. This is because of the country's high taxes on petrol, which is increasing the demand for alternative fuel vehicles. The government's new vehicle scrappage policies will also increase the demand for electric three-wheelers, besides lowering their cost by providing subsidiaries in the country.
Key Market Players
The Asia Pacific electric three-wheeler market is dominated by Mahindra & Mahindra Ltd. (India), Atul Auto Ltd. (India), Piaggio Group (Italy), Saera Electric Auto Pvt. Ltd. (India), and Kinetic Green Vehicles (India), among others. These companies manufactures and supplies electric three-wheeler to various countries globally. These companies have set up R&D infrastructure and offer best-in-class solutions to their customers.
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Report Metric |
Details |
|
Market Size Available for Years |
2019–2028 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2028 |
|
Forecast Units |
Value (USD Billion/Million) and Volume (Thousand Units) |
|
Segments Covered |
Motor Power, Battery Capacity, Range, Battery Type, Payload Capacity, End-Use, and Country |
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Geographies Covered |
Asia Pacific |
|
Companies Covered |
Mahindra & Mahindra, Atul Auto, Piaggio Group, Saera Electric, Kinetic Green among others. |
This research report categorizes the Asia Pacific Electric Three-wheeler Market based on Motor Power, Battery Capacity, End-Use, Range, Battery Type, Payload Capacity And Country
Based on Motor Power:
- Below 1,000 W
- 1,000–1,500 W
- Above 1,500 W
Based on Battery Capacity:
- Below 3 kWh
- 3–6 kWh
- Above 6 kWh
Based on Range:
- Up to 50 miles
- Above 50 miles
Based on Battery Type:
- Lead-acid battery
- Lithium-ion battery
- Others
Based on Payload Capacity:
- Up to 300 kg
- 300–500 kg
- Above 500 kg
Based on End Use:
- Passenger Carrier
- Load Carrier
Based on Country:
- Bangladesh
- China
- India
- Indonesia
- Japan
- Nepal
- Philippines
- Singapore
- Sri Lanka
- Vietnam
- Thailand
Recent Developments
- In March 2023, Mahindra & Mahindra Ltd. wholly announced that it had received an investment of USD 72.8 million from the International Finance Corporation (IFC). The IFC invested in a wholly owned subsidiary of M&M to focus on Electric three-wheelers and small commercial vehicles.
- In February 2023, Mahindra & Mahindra Ltd. signed an MOU with the Telangana Government for its expansion plans, under which Mahindra & Mahindra will set up a manufacturing facility in Zaheerabad, Medak District. This facility will primarily focus on developing and producing electric three-wheelers for the lastlast-mileility business.
- In January 2023, Saera Electric Auto announced a partnership with AMU Leasing Pvt. Ltd. Through this pact, customers can easily avail financing options from AMU, to buy new EVs from Saera Electric Auto.
- In January 2023, ZF Friedrichshafen AG launched Smart Camera 4.8. It enables autonomous cars to have a wider field of view, in turn enabling the vehicle to identify pedestrians, cyclists, and other vehicles.
Frequently Asked Questions (FAQ):
What is the current size of the Asia Pacific electric three-wheeler market?
The current size of the Asia Pacific electric three-wheeler is estimated at USD 813 Million in 2023.
Who are the winners in the Asia Pacific electric three-wheeler market?
The Asia Pacific electric three-wheeler market is dominated by Mahindra & Mahindra Ltd. (India), Atul Auto Ltd. (India), Piaggio Group (Italy), Saera Electric Auto Pvt. Ltd. (India), Kinetic Green Vehicles (India), among others. These companies manufacture and supply electric three-wheeler to various countries globally. These companies have set up R&D infrastructure and offer best-in-class solutions to their customers.
Which region will have the fastest-growing market for the Asia Pacific electric three-wheeler market?
Thailand will be the fastest-growing region in the Asia Pacific electric three-wheeler market due to the increasing adoption of electric three-wheelers for short-distance travel, last-mile delivery, and the logistics industry in the country. The Thai government announced a target to make Thailand an EV production hub by 2035 and raised the target for the proportion of EVs in domestic automobile production by 2030 from 30% to 50%. It also plans to replace over 30,000 3 wheelers in the coming years.
What are the key technologies affecting the Asia Pacific electric three-wheeler market?
The key technologies affecting the Asia Pacific electric three-wheeler market are new battery technologies, smart charging infrastructure, Iot, and connected mobility technologies.
What is the total CAGR expected to be recorded for the Asia Pacific electric three-wheeler market during 2023-2028?
The market is expected to record a CAGR of 5.9% by volume from 2023-2028.
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The study involved four major activities in estimating the current size of the Asia Pacific Electric Three-wheeler Market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down approach was employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used in estimating the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications (for example, publications of automobile OEMs), automotive component associations, American Automobile Association (AAA), European Alternative Fuels Observatory (EAFO), International Energy Agency (IEA), country-level automotive associations, automobile magazines, articles, directories, technical handbooks, World Economic Outlook, trade websites, technical articles, and databases (for example, Marklines and Factiva) were used to identify and collect information for an extensive commercial study of the Asia Pacific Electric Three-wheeler Market.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the Asia Pacific Electric Three-wheeler market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (country-level government associations, trade associations, institutes) and supply sides (OEMs/vehicle manufacturers) across four major countries. 24% of the experts involved in primary interviews were from the demand side, while the remaining 76% were from the supply side.
Primary data was collected through questionnaires, emails, and telephonic interviews. Primary interviews were conducted from various departments within organizations, such as sales, operations, and administration, to provide a holistic viewpoint of the report. After interacting with industry participants, brief sessions were conducted with experienced independent consultants to reinforce the findings from the primaries. This, along with the in-house subject matter experts’ opinions, has led to the findings delineated in the rest of this report. Following is the breakdown of primary respondents:
Breakdown of Primaries
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Market Size Estimation
The top-down approach was used to determine the size of the Asia Pacific electric three-wheeler market for Range, Battery Type, Battery Capacity, Motor Power, and Payload Capacity. The total market size in volume (Units) and value (USD million) were derived for these segments using the top-down approach.
Bottom up approach was used to determine market size by country and end-use. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s future supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from the supply side.
Market Definition
Electric three-wheelers are plug-in three-wheeled vehicles powered by electric motors. The engine is powered by electricity stored in a rechargeable battery. These vehicles produce no emissions. The top and operational speeds of these electric three-wheelers are determined by battery technology and kind. It covers several kind of electric three-wheelers used for personal and commercial purposes, such as e-rickshaws, e-autos, and e-loaders. The market includes the manufacture, distribution, and sale of these vehicle, as well as the charging infrastructure and support services required.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
Report Objectives
- To analyze the Asia Pacific electric three-wheeler market and forecast its volume (units) from 2023 to 2028
- To provide detailed information regarding major factors (drivers, restraints, opportunities, and challenges) influencing the market growth
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To segment the market and forecast its size by volume (units) based on motor power
(below 1000 W, 1000–1500 W, and above 1500 W); battery capacity (below 3 kWh, 3-6 kWh, and above 6 kWh); end-use (passenger carrier and load carrier); range (up to 50 miles and above 50 miles); battery type (lead-acid battery, lithium-ion battery, and others); payload capacity (up to 300 kg, 300–500 kg, and above 500 kg); and country (Bangladesh, India, Indonesia, Japan, Nepal, the Philippines, Sri Lanka, Vietnam, China, Singapore, and Thailand) - To analyze the technological developments impacting the market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders
- To analyze the market strategically with respect to individual growth trends, prospects, and contributions to the total market
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To study the following with respect to the market
- Value Chain Analysis
- Ecosystem
- Porter’s Five Forces Analysis
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Buying Criteria
- To track and analyze competitive developments, such as deals (joint ventures, mergers & acquisitions, partnerships, and collaborations), new product developments, and other activities carried out by key industry players
- To strategically profile key players and comprehensively analyze their market shares and core competencies
Available Customizations
With the given market data, MarketsandMarkets offers customizations in line with company-specific needs.
- Asia Pacific Electric three-wheeler Market, by Battery Type, at the country level (For countries covered in the report)
- Asia Pacific Electric three-wheeler Market, by End-use, at the country level (For countries covered in the report)
Company Information
- Profiling of Additional Market Players (Up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Asia Pacific Electric Three-Wheeler Market