According to the new research report titled “Electric Three-Wheeler Market Forecast to 2028 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 756.52 million by 2028, growing at a CAGR of 5.9% from 2021 to 2028.
India is one of the largest shareholders in the electric three-wheelers market in Asia Pacific. The low-emission vehicle industry in the country is growing rapidly on the back of favorable initiatives by governments as well as notable presence of manufacturers such as Mahindra & Mahindra, Atul Auto, Piaggio, and Lohia Auto. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles II (FAME II) Scheme, with a budget of USD 1.4 billion, was announced with a fund allocation of USD 1.19 billion for providing upfront discounts on EV purchases and USD 1.9 million for promoting the implementation of charging infrastructure.
Further, China holds for a significant share of the electric three-wheeler vehicles market in APAC; moreover, it accounts for a sizable portion of the supply of primary raw materials used to make batteries used in these vehicles. As per market estimates, there were more than 300 million electric three-wheelers on road in APAC countries by the end of 2018, and China accounted for most of them. Its national policies for energy protection and urban air pollution favor the development of electric vehicles. Over the last 15 years, China has put significant efforts in the development of electric vehicle technologies.
Government authorities in APAC countries are aiming to provide more enhanced electricity and communication infrastructure as well as autonomy to citizens to provide them a better future. These countries are in the process of accepting electric and environmentally friendly mobility as a prominent means of transportation in the future. However, to achieve this, a strong cooperation between public and private parties is needed, along with the development of a long-term plan tailored to market's unique circumstances. The automotive industry in many of the APAC countries is experiencing a virtual transformation due to the steady penetration of electric vehicles.
Further, the COVID-19 pandemic resulted in the supply shortage, affecting the assembly of original equipment manufacturers (OEMs) in all the regions. About the two-thirds of the auto production in China was directly affected by the business shutdown, which had an adverse impact on the market suppliers as well. Therefore, the COVID-19 outbreak has limited the operations of the automotive manufacturing industry in APAC, which is limiting the growth of the electric three-wheelers market.
Key Findings of Study:
There is a huge scope for the adoption of IoT technology in electric three-wheeler vehicles. With high-quality sensors and reliable connectivity, it has become possible to have driverless electric three-wheelers. Driverless electric three-wheelers can offer economic advantage for buyers, as well as reduce road mishaps significantly. For example, in April 2021, Minus Zero, a self-driving vehicle startup, successfully tested a rejigged autonomous three-wheeler vehicle on the streets of Jalandhar, Punjab, for more than 2 km, demonstrating its capabilities on Indian roads. Minus Zero is developing a Level 5 self-driving car with a highly energy-efficient, electric vehicle design and a proprietary nature-inspired AI that does not require huge data volumes and expensive sensor suites to operate. Thus, the growing popularity of autonomous electric three-wheelers is one of the major trends anticipated to propel the growth of electric three-wheeler market during the forecast period.
