Electric vehicle adoption has picked the pace in India for quite some time now. While electric two-wheelers have been the first adopters and performers, the three-wheeler segment too is fast catching up.
The Indian three-wheeler sector was heavily impacted by the health crisis, with public transport, and shared mobility being the worst hit. Nevertheless, the recovery rate has improved and the surge in retail sales is evident if we look at the figures from Vahan data.
The sales of registered e-3Ws passenger and cargo-type in June 2022 stood at 23,979 units and 2,931 units respectively, signifying a M-o-M increase of 15.35 per cent for e-3W – passenger and an increase of 15.71 per cent in the cargo segment respectively.
The e-3Ws segment recorded 101 per cent YoY sales, amounting to 1,77,874 total sold units in FY 2022, marking a noticeable growth. Thanks to government support and the various policies and initiatives.
The cumulative sales of the top electric 3-wheeler players across passenger and cargo segments in June 2022 accounted for a 37.61 per cent share of the entire e-3W market.
Retail sales as announced by Federation of Automobile Dealers Associations (FADA), stood at 46,040 units in June 2022, over 14,735 units sold in June 2021. It was also an increase of 281 per cent over 12,079 units sold in June 2020. However, a de-growth of about 6 per cent can be noted when compared to 48,830 units sold in June 2019.
In fact, for the first time ever, the sales tally for electric three-wheeler retail sales (including L3 category) outnumbered the conventional ICE three-wheelers in May 2022. The electric segment sold 21,911 units compared to its ICE counterpart’s 19,597 units, thereby recording a market size surge from 45 per cent to 53 per cent sequentially.
Commenting on the factors behind the surge in sales of electric three-wheelers, Suman Mishra, CEO, Mahindra Electric Mobility, told Express Mobility, “Electric three-wheelers deliver a better cost of ownership than their ICE counterparts which enables better value for the commercial segment. The rising prices in fuel (diesel, CNG), as well as increased supply, has created an increased demand for electric 3-wheelers. The progressive policies of the government (i.e., FAME-II subsidy extension, PLI scheme), state government incentives
Not to mention, the e-commerce industry has been one of the major contributors amongst the others. The steady hefty burst in last-mile logistics and cargo requirements has brought the e-commerce sector to adopt the EV way of doing business.
Sanjay Behl, CEO and ED, Greaves Electric Mobility told Express Mobility, “Today, electric three-wheelers have a significant range and are extremely practical for intra-city operations, which makes them popular with fleet operators and individual customers alike. With increasing mobility for passengers and enhanced cargo delivery needs, and with the increasing prices of fuel, the demand for electric three-wheelers is only set to grow.”
Besides the various offerings of the electric three-wheelers like the ease of replacing discharged batteries with charged ones, logistics business-related firms having their fleet pertaining to first and last-mile transportation are switching to electric mobility.