Electric three wheeler market is anticipated to grow at a significant CAGR of 6.2% during the forecast period. Owing to the rising inclination towards electric vehicles over conventional vehicles powered by fossil fuel is boosting the demand for electric three wheelers across the globe during the forecast period. Due to the increasing pollution, toxic gases and growing concentration of greenhouse gases in the environment has encouraged people to look for sustainable modes of transportation options, such as for electric three-wheeler vehicles. Conventional vehicles with an internal combustion engine (ICE) produce direct emissions through the tailpipe, as well as through evaporation from the vehicle's fuel system and during the fueling process. On the other hand, all-electric vehicles produce zero direct emissions. According to US Environmental Protection Agency (EPA) data, a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year. This assumes the average gasoline vehicle on the road today has a fuel economy of about 22.0 miles per gallon and drives around 11,500 miles per year. Every gallon of gasoline burned creates about 8,887 grams of CO2.

Further, in addition to carbon dioxide (CO2), automobiles produce methane (CH4) and nitrous oxide (N2O) from the tailpipe and hydrofluorocarbon emissions from leaking air conditioners. The emissions of these gases are small in comparison to CO2, however, the impact of these emissions can be significant as they have a higher global warming potential (GWP) than CO2. Due to these environmental factors the consumers mind is shifting towards electric vehicle for transportation such as electric three wheelers hence growing the market.

Segmental Outlook 

The global electric three wheeler market is segmented based on battery type, power type, and end-use. Based on battery type, the market is segmented into lithium-ion, and lead acid. Based on power type, the market is sub-segmented into upto 1000W, 1000W - 1500W, above 1500W. Based on end-use, the market is sub-segmented into passenger carrier, good carrier. The above mentioned segments can be customized as per the requirements. Among the battery type, the lithium-ion battery is anticipated to grow at the fastest rate during the forecast period. Owing to the various benefits such as increased battery life, increased energy density, compact size, less charging duration, and low maintenance along with eco friendly components, is the major factor fuelling the demand for lithium-ion battery during the forecast period. 

The lithium-ion batteries have a lower rate of self-discharge than other rechargeable batteries, which also has led to their rising popularity in the electric vehicle market. As a result, the availability of smaller batteries with higher charge retention has become critical for the energy requirements of electronic vehicles like three wheelers. Furthemore, the increasing number of electric vehicles, such as hybrid electric vehicles, and plug-in hybrid electric vehicles have also propelled the demand for lithium-ion batteries segment.

Regional Outlooks

The global electric three wheeler market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can be analyzed for a particular region or country level as per the requirement. Asia-Pacific is anticipated to grow at the fastest rate during the forecast period owing to the fact that India and China are the major countries with three-wheelers used as good carriers and passenger carrier. Further electric three wheelers provides an affordable public transport for daily commuting to the people in the region for the low middle class.  For instance , in December 2019, in New Delhi, the Piaggio Group presented the new Ape E-City, the full-electric version of the iconic Piaggio three-wheeler, marking the Group's entry on the electric commercial vehicles market in India. The Ape E-City is an effective response to the growing demand for commercial mobility, in particular for urban transport in India, and to increasing interest in alternative energy sources.

Global Electric Three Wheeler  Market Growth, by Region 2022-2028

The Europe is Expected to Hold the Considerable Share in the Global Electric Three Wheeler Market during the Forecast Period. 

The Europe is expected to hold the considerable share in the global electric three wheeler market during the forecast period owing to the presence of prominent automobile manufacturers who are aggressively investing and the rapid adoption of vehicle electrification in this region. Electric three wheeler manufacturers are investing exponentially in R&D for innovating technologically advanced mobility solutions. For instance, the EU-LIVE, a European R&D project funded by Horizon 2020, has been unveiled to cater to a wide range of L-category (3-wheeled vehicles one can use at a speed above 50 km/h on any road) electrified mobility solutions. The three-wheeler is equipped with a plug-in hybrid electric vehicle (PHEV) powertrain, two electric in-wheel motors, and a gasoline internal combustion engine. It will provide a comprehensive platform for the next generation of electrified, cost- and energy-efficient light urban vehicles. 

Market Players Outlook

The major companies serving the global electric three wheeler market include Atul Auto Ltd., Mahindra Electric Mobility Ltd., Omega Seiki Mobility , Piaggio & C. S.p.A , Terra Motors and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in October 2020 Atul Auto Ltd. acquired 70% equity share of Khushbu Auto Finance Limited (“KAFL”) making it wholly-owned subsidiary. This acquisition is made with an object to ensure the desired finance support to the retail customers of vehicles of the company. KAFL is engaged mainly in the business of financing three-wheeler automobiles. KAFL has a business presence in the state of Gujarat, Haryana, Andhra Pradesh, Kerala and Karnataka.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global electric three wheeler market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.