Market Trends of Asia Three Wheeler Industry
This section covers the major market trends shaping the Asia Three Wheeler Market according to our research experts:
Industry’s Shift Toward the Adoption of Electric Three Wheelers
The three-wheeler industry across the Asian geography is experiencing a shift towards adopting electric vehicles. Countries like India, China, and Thailand are at the forefront of this transition. Government regulations and incentives are paving the way for market development in this region. New firms are coming up, and both new and old companies are developing products to compete and thrive in the evolving market space.
India is poised to be the largest market for electric three-wheelers. As part of the country's initiative to push for e-mobility in a big way, the government has marked around INR 10,000 crores under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme. Recently, the government has also proposed doubling the subsidy for electric three-wheelers to INR 20,000 per kWh to bring down the initial prices of electric three-wheelers on a par with IC Engine three-wheelers. This trend has shown a positive effect on the market, and in the past two years, sales of electric three-wheelers have overtaken the IC Engine ones.
The Electric Vehicle Association of Thailand (EVAT) is in talks with the Land Transport Department to revise the related laws to enable new registration of three-wheelers, especially focusing on electrified ones.
India poised to be the largest market for three wheelers in Asia
The three-wheelers market in India is expected to grow at 9% over the next five years. According to the Society of Indian Automotive Manufacturers, more than 700,000 three-wheelers are produced in the country.
The abolition of the permit regime in major three-wheeler markets like Gujarat and Maharashtra, along with the issuance of fresh permits in states like Karnataka, Delhi, Telangana, and Andhra Pradesh, has extended the much-needed impetus for the growth of the domestic three-wheeler market.
Among the different regions, the Western and Central regions are the largest three-wheeler markets, followed by South and East. With many states working aggressively on the electric vehicle policy and states like Karnataka proposing a complete phase-out of two-stroke engine three-wheelers and a ban on diesel vehicles, the Southern region market is expected to witness significant growth over the forecast period.
India is also a major exporter of three-wheelers, and over the past years, the share of exports has expanded, driven by increasing penetration in Asian and African markets. Over the past decade, three-wheeler exports have grown at 14% and currently account for nearly 40% of total production.
