The Electric Three-Wheeler segment is the most popular and accepted electric vehicle segment in India. In 2020, the Indian e-rickshaw segment has been impacted due to the recent COVID – 19 pandemic. ACG is expecting a CAGR of 20% registered between 2020 to 2025 with the Electric Vehicle Passenger Vehicle segment bringing a 20% CAGR and the Electric Goods vehicle with 38%.
By 2025, it is predicted that around 25% of all passenger three-wheeler vehicles and 10% of all three-wheelers carrying goods will be electric. The penetration of the 3-Wheeler electric vehicle segment is equally deep in Tiers I, II, III as well as in small towns. The market share is not impacted by brand names and this allows for local manufacturers to have a stronger hold over the market. In the three-wheeler segment especially, brand name does not play that important role in the buying process. There are exceptional growth opportunities in this segment for existing as well as new players.
The consumer base for this segment mostly comprises the low income and less educated category. This is in direct contradiction when compared to the Electric Two-Wheeler and Electric Car owners. The reason why the three-wheeler segment enjoys such a tremendous market share is due to the low manufacturing costs of the vehicle. This is achieved largely due to the low maintenance cost and running cost of the vehicle. The electric three-wheelers can run for almost 12 hours daily. When compared to the traditional three-wheeler, the electric alternative expends much less noise, almost none at all. This, in turn, ensures a much more comfortable rickshaw experience for the driver as well as the passenger, which oftentimes tends to get extremely loud.
One of the major issues faced by this segment is the acceptance of the electric alternative. In our entry strategy projects of Electric Two-Wheeler and Electric car, the infrastructure of battery charging points and the initial price of the vehicle were found to be the key issues for buyers. Many manufacturers prefer to lower their costs by utilizing acid lead batteries. Though it may seem like a cost-cutting solution at first, the lithium-ion battery alternative is much more ecologically sustainable and long-lasting. Though the initial cost of the electric alternative is higher than its ICE (Internal Combustion Engine) counterpart, in the long run, the electric option reaps more profit and benefit for the consumer.
A study has shown that in terms of environmental sustainability, comfort as well as profit, the Electric Three-Wheeler performed much better than the ICE vehicle. In this research, we have compiled a report which includes demand analysis, supply and policy growth drivers for EVs such as battery costs, government subsidy and charging infrastructure, besides conducting a segment-wise analysis of the cost of acquisition and operation of EVs compared with existing internal combustion engine (ICE) vehicles.
New Opportunities in India’s Electric Three-Wheeler Market Report Highlights:
- The market size – By volume unit and in Value
- Vehicle volume by Li-ion & Lead Acid
- Key players, Product portfolio, Products specs, and Price
- Customer profile and customer complaints and pain points
- Customer acceptance ration between Brand and local manufacturer
- TCO Analysis
- Key Drivers of Industry
- Organize players (OEM – Mahindra, Lohia) and unorganized players Market share
- Govt incentive schemes and FAME II description
- Purchase Analysis and buying process
- Market Attractiveness Analysis
- Application wise – Passenger Vehicle, Goods Transportation, and Last-mile transportation
- Product position, and GAP Analysis
- Li-ion and Acid battery average price range
- Battery type of sales, Battery life analysis, Performance, and Warranty period
- 3 Wheeler vehicle ICE to Electric Vehicle migration expected rate in the next 5 years
- SWOT Analysis
- Competitive Analysis
- Industry Challenges and Risk
- Macro-Economic Analysis After COVID 19