Electric Three-Wheeler Market Size, Trends and Growth Analysis by 2027

The electric three-wheeler sector was valued at approximately US$ 472.56 million in 2020 and is anticipated to grow to US$ 756.52 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028.

Across the globe, both governmental and non-governmental organizations have initiated various programs aimed at promoting the adoption of electric three-wheelers in place of traditional vehicles. For instance, the UN Environment is actively assisting several developing countries in Africa and Asia to establish national programs and initiatives for the rollout of electric two-wheelers and three-wheelers. This support extends to projects in eight nations, including Vietnam, Ethiopia, Thailand, Morocco, the Philippines, Kenya, Uganda, and Rwanda. These efforts are designed to facilitate the integration of electric three-wheelers into the transportation ecosystem, thereby aiding the shift from fossil fuel dependency to electric mobility.

In 2020, the Asia Pacific region dominated the electric three-wheeler market. During the period of 2018-2019, while other automotive segments faced sluggish demand growth, the electric three-wheeler segment experienced significant sales increases. Key factors propelling this market in the region include the availability of government incentives, decreasing battery prices, and the expansion of charging infrastructure. Notably, India plays a crucial role in the Asia Pacific electric three-wheeler market, with logistics companies increasingly adopting electric three-wheelers to support the rapidly growing e-commerce sector.

The outbreak of COVID-19 has had a profound impact on the supply chain and manufacturing processes for electronic components, including those used in electric three-wheelers. The pandemic led to widespread lockdowns, causing automotive industry experts to predict a significant delay in the supply chain for electronic equipment, potentially lasting at least a quarter. However, as governments begin to lift restrictions, the electronics and automotive sectors are expected to regain momentum, which will positively affect the production of electronic components and automotive products, including those for electric three-wheelers.

The overall market size for electric three-wheelers has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aids in providing a comprehensive overview and forecast for the electric three-wheeler market across various segments. Additionally, numerous primary interviews have been conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants in this research include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the electric three-wheeler market.