Friday, April 9, 2021

Technology Startups in Electric 3W are looking to Manufacture an Alternate Eco-Friendly Mobility Option at a Cheaper Running Cost Expected to Drive the Electric 3W Market in India: Ken Research

Electric 3 Wheelers accounted for only about 1% of the 2.8 lakh electric vehicles that availed purchase subsidies through Phase-1 of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-I) scheme between April 2015-March 2019.

Amazon plans to add 10,000 electric rickshaws to its delivery fleet in India by 2025. Similarly, furnishing giant IKEA, and retail joints like Big Basket, Flipkart and Grofers are among those increasingly relying on e-rickshaws for clean and economical last-mile delivery.

Emerging Trends in Electric 3W Market: The government of India began allowing the sale of e-3Ws without battery which significantly reduces purchase cost. The lightweight and compact nature of lithium-ion batteries, used in e-3Ws, makes it well-suited for the battery swapping model. In this model, a discharged battery can be replaced immediately with a fully charged one, offering consumers an experience similar to the re-fuelling of ICE vehicles. While the upfront cost may be reduced by about 30-40% for e-3Ws without battery, its operating cost will be relatively higher than e-3Ws with battery. E-3Ws with high assured utilization rates are a more profitable prospect for businesses, as they become cheaper to operate per km with increased utilization. This has been recognized by big companies in the Indian market.

Government Initiatives to Support Electric 3 Wheelers: The government of India has been responsive in recognizing the need for transitioning to electric mobility and has developed policies and schemes to direct growth in this direction on numerous occasions. To boost electric mobility, the government aims to support through subsidies about 5 lakh electric three wheelers in the country. The focus is also on creating electric charging infrastructure to promote the usage. Phase-II of FAME India Scheme is being implemented with a total budgetary support of ₹ 10,000 crores.

Apart from the measures at the national level, several state governments are also committed to promoting electric three-wheelers in their states to drive market growth. For instance, Delhi is paving the way for an e-3W market by offering both financial and non-financial incentives such as an open permit system, targeted purchase subsidies, interest subvention on loans, hire purchase scheme, scrapping incentives along with no additional cost permit exchange system etc. Kerala’s state EV policy offers another bold measure - the proposal to give commercial permits only to E- 3Ws.

Impact of Covid-19: The sudden onset of the pandemic has posed a significant threat to India's electric three-wheeler market as the production of vehicles has been hampered as a result of the lockdown. For a market that is trying to strengthen its position in the industry, COVID 19 came as a severe blow. However, as per the industry experts the EV three wheeler markets will recover swiftly from Covid-19 setback when compared to their ICE counterparts and their outlook remains strong in the medium term. As per EV market forecast by Frost and Sullivan, e-rickshaws, e-autos and e-two wheelers are the most promising segments for electrification in India and are expected to account for over four-million units by 2025. Investing in an electric three-wheeler is likely to aid in the preservation of air quality and the reduction of health risks in communities. Recently, the “Switch Delhi’ campaign was launched by Delhi’s Chief Minister, Mr. Arvind Kejriwal for promoting electric vehicles in the city. Additionally, after the implementation of the Delhi EV policy in August 2020, three-wheelers have become the most common EV segment in the city.

Analysts at Ken Research in their latest publication India Electric 3W Market Outlook to 2025- By Wheeler Type (Passenger, Goods, Personal), By Vehicle Category (Transport and Non-Transport), Registration by Region (North, East, West, South) and Registration by Stateobserved that the electric 3 wheeler market in India has a great potential to grow supported by numerous government initiatives.  The electric three-wheelers would offer the lowest cost of transportation, with e-commerce delivery coming in and a higher need for last-mile connectivity solution As per EV market forecast by Frost and Sullivan, e-rickshaws, e-autos and e-two wheelers are the most promising segments for electrification in India and are expected to account for over four-million units by 2025. At the early phase of transition, when the support infrastructure hasn’t matured enough, financial incentives as well as non-financial incentives can help forge the transition to e-3Ws. Policy instruments such as scrappage incentives will further aid in accelerating the adoption of e-3W.

Key Segments Covered:-

By Wheeler Type

Passenger

Goods

Personal

By Vehicle Category

Transport

Non-Transport

Registration by Region

North

East

West

South

Registration by State:-

3 Wheeler Makers Covered:-

Bajaj Auto Ltd

Piaggio Vehicles Pvt Ltd

Atul Auto Ltd

Mahindra & Mahindra Limited

Yc Electric Vehicle

Tvs Motor Company Ltd

J. S. Auto (P) Ltd

Continental Engines Pvt Ltd

Saera Electric Auto Pvt Ltd

Mahindra Reva Electric Vehicles Pvt Ltd

Vani Electric Vehicles Pvt Ltd

Champion Poly Plast

Terra Motors India Pvt Ltd

Dilli Electric Auto Pvt Ltd

G.K. Rickshaw

Best Way Agencies Pvt Ltd

Thukral Electric Bikes Pvt Ltd

Scooters India Ltd

Mini Metro Ev L.L.P

Unique International

Grd Motors

Pubang Etron Electric Motor Pvt Ltd

Energy Electric Vehicles

Zeniak Innovation India Ltd

Allfine Industries Pvt Ltd

Delta Autocorp Llp

3 Wheeler Electric Makers Covered:-

YC Electric Vehicle

Mahindra & Mahindra Limited

Saera Electric Auto Pvt Ltd

Mahindra Reva Electric Vehicles Pvt Ltd

Vani Electric Vehicles Pvt Ltd

Champion Poly Plast

Terra Motors India Pvt Ltd

Dilli Electric Auto Pvt Ltd

G.K. Rickshaw

Best Way Agencies Pvt Ltd

Thukral Electric Bikes Pvt Ltd

Mini Metro Ev L.L.P

Unique International

Grd Motors

Pubang Etron Electric Motor Pvt Ltd

Energy Electric Vehicles

Zeniak Innovation India Ltd

J. S. Auto (P) Ltd

Allfine Industries Pvt Ltd

Delta Autocorp Llp

Key Target Audience:-

E-Three Wheeler OEMs

EV Charger Manufacturers

EV Battery Manufacturers

Consultancy Companies

Industry Associations

Regulatory Bodies

Time Period Captured in the Report:-

Historical Period – 2016-2020

Forecast Period – 2020-2025

For More Information on the research report, refer to below link:-

India Electric Three Wheeler Market

Related Reports:-

India Commercial Two Wheeler Market Outlook to 2025: Driven by Changing Shopping Habits of Consumers and Rise in Demand from Tier II & Tier III cities

India Rental Two Wheeler Market Outlook to 2025 - Driven by Introduction of Electric Vehicles and Adoption of Dockless System in Vehicles

India Used Two Wheeler Market Outlook to 2025- Driven by Increase in Workforce Migration and Aversion towards Using Public Transportation

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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