Market Trends of Electric Three-Wheeler Industry
This section covers the major market trends shaping the Electric Three-Wheeler Market according to our research experts:
Increasing Focus on Emission Control Driving the Market
Several low- and middle-income countries in the world have a high rate of usage of three-wheelers, which were traditionally powered by IC engines. However, many of these internal combustion engine three-wheelers are old and inefficient, thus, emitting substantial amounts of particulate matter (PM) and black carbon (BC), a potent short-lived pollutant. The growing emission control norms have propelled the manufacturers to increase their expenditure on R&D of electric three-wheelers, which eventually allowed them to market them as the future of intracity mobility.
Governments and organizations across the world have initiated various schemes and initiatives, which encourage buyers to choose electric three-wheelers over conventional vehicles. For instance, the UN Environment is supporting developing countries to develop national programs for the introduction of electric two- and three-wheelers in Africa and Asia. The UN Environment is supporting electric two- and three-wheeler projects in eight countries in Africa and Asia: Ethiopia, Morocco, Kenya, Rwanda, Uganda, the Philippines, Thailand, and Vietnam. Such activities are envisioned to propel the integration of electric three-wheelers, and this may help the transformation from fossil fuels-based mobility to electric mobility, thereby, driving the growth of the market.
Asia-Pacific Will Lead the Market
Over the past few years, the Asia-Pacific region has turned out to be an emerging market for electric three-wheeler. During the year 2018-19, when all other auto segment witnessed a slow demand growth as compared to previous year, sales of electric three-wheeler segment grew around 21 per cent from 2017-18 sales of electric three wheelers in the country.
The Governments in the region are also taking measures to reduce pollution in the region. For instance,
- In December 2019, the government of India announced the phase-II of FAME India scheme, which focus on supporting electrification of public & shared transportation, and aims to support e-buses, e-3 wheelers through incentives.
- In Thaniland, The Energy Conservation Fund (ECF) has approved a subsidy of THB 106 million, to motivate tuk-tuk owners to move from liquefied petroleum gas (LPG) to Electric ones.
Several major players in the region like Terra motors are launching various electric three-wheelers, both for passenger and cargo transportation to prospective markets like India, Bangladesh and Nepal to increase their market presence and share.
