DUBLIN--(BUSINESS WIRE)--The "Asia Pacific Electric 3-Wheeler Market by End-use (Passenger & Load), Range (Up to 50 Miles & Above 50 Miles), Battery type (Lead Acid & Lithium ion), Battery Capacity (Below 3kWh, 3kWh-6kWh, Above 6kWh), Motor Power and Country - Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
Asia Pacific electric three-wheeler market is estimated to be 156,397 units in 2021 and is projected to grow to 486,446 units by 2026, at a CAGR of 25.5% during the forecast period.
With the increasing stringency of government mandates, the focus of three-wheeler manufacturers has shifted to efficiency, emission-free propulsion, innovative technologies, and revised environmental standards. The increasing adoption of electric three-wheelers and improved charging infrastructure (in terms of network and capacity) in countries will change the market scenario in the coming years.
The recent developments in the electric three-wheeler market have introduced batteries with improved specifications that are said to be at the heart of any electric three-wheeler. These advancements in batteries are expected to increase the performance and range of electric vehicles. The range is one of the most important reasons that users are still a bit hesitant to prefer electric three-wheelers over ICE three-wheelers. However, government bodies are working with manufacturers to provide the necessary charging infrastructure network. Because of all these benefits, electric three-wheelers are the future of the automotive industry.
COVID-19 has had a significant impact on the electric three-wheeler market. Both the production and sales of new electric three-wheeler came to a halt as the whole ecosystem got disrupted. OEMs had to wait until lockdowns were lifted to resume production, which affected their business. Post the pandemic, the demand for new electric three-wheeler is expected to show an increase as economies are recovering steadily.
Nevertheless, another wave of COVID-19 due to newer strains may hamper the recovery in some countries. Subsequently, electric three-wheeler manufacturers would need to adjust the production volume based on the COVID-19 scenario across different countries. In addition, component manufacturing too was suspended, and small Tier II and Tier III manufacturers are facing face liquidity issues. Thus, production suspension during the outbreak and lower demand post the pandemic might have an unprecedented impact on electric three-wheeler providers.
Growing Adoption of Electric Three-Wheeler by Logistics Companies to Drive the Market
Various retail, logistics, and courier companies have already started adopting electric three-wheelers on a small scale. With advancements in technology and the development of more vehicles, the adoption rate of electric three-wheeler load carriers will grow exponentially.
Although electric three-wheelers have been predominantly successful in short-distance passenger applications so far, these are now being seen as promising transportation modes for last-mile load delivery as well. Several startups are entering the market to provide customized electric three-wheeler load carrier solutions. This is further driving the growth of the segment.
The supply chain industry is constantly transforming by adopting green technology for transportation. An increased need for efficiency, differentiated routes to market, access to new geographies, and acceptance of digital supply chain solutions are transforming the supply chain. With transformations in the supply chain, the demand for specialized and customized electric three-wheelers is growing.
Last-mile delivery to boost the market of Electric three-wheeler in India
The market for electric three-wheelers in India is the largest in the Asia Pacific and is expected to witness high growth in the long term. India is amongst the top consumers of electric three-wheelers. The low emission vehicle industry in India is developing rapidly with the support of the government and manufacturers such as Mahindra & Mahindra, Atul Auto, Piaggio, and Lohia Auto.
India is one of the largest contributors to greenhouse gases and has pledged to reduce emissions from petrol and diesel cars during the next few decades. This initiative by the Indian government is expected to lead to significant demand for electric three-wheelers in the country. The government of India has announced various plans to support the development of electric three-wheeler infrastructure.
Government policies have encouraged private logistics companies to adopt electric three-wheelers. The motivation for adoption is mostly to reduce carbon footprint. The shift to electric three-wheelers is also in line with the Government of India's commitment to reduce carbon footprint, which encourages fuel-based three-wheelers to be replaced with electrically powered vehicles. According to industry experts, the addition of electric vehicles will help cut down last-mile delivery costs by up to 50% and carbon footprint by more than 40%.
Large logistics spaces, mainly for lease, are growing rapidly in India. The drivers of growth for logistics, supply chain, and warehousing include the demand from third-party logistics operators and eCommerce companies. This is fuelling the demand for electric three-wheelers in intracity transportation.
Favourable government policies in Bangladesh to drive the market
Electric three-wheelers are popularly known as easy-bikes and Tom-Toms in some districts of Bangladesh. They have been in use in the country since 2004 and become one of the most widely used means of transportation for the masses in both urban and rural areas. The country is significantly focused on the adoption of electric vehicles.
The government is rolling out policies to increase the penetration of electric vehicles, which, in turn, will drive the electric three-wheeler market. In 2020, the government drafted an industrial policy to try and attract electric vehicle production lines and even solar-powered electric-vehicles to the country.
The study contains insights from various industry experts, ranging from component suppliers to tier 1 companies and OEMs. The break-up of the primaries is as follows:
Major players profiled in the report are Mahindra & Mahindra Ltd. (India), Atul Auto Ltd. (India), Piaggio Group (Italy), Lohia Auto Industries (India), and Kinetic Engineering Limited (India).
Companies Mentioned
- Altigreen
- Atul Auto Ltd.
- Bajaj Auto
- Beevatech Limited
- Bemac Corporation
- Changzhou Yufeng Vehicle Co., Ltd.
- Electric Vehicles (Thailand) Co., Ltd.
- Gayam Motor Works Private Limited
- Green Shuttle Technology Pvt. Ltd.
- Jiangsu East Yonsland Vehicle Manufacturing Co., Ltd.
- Jiangsu Jinpeng Group Co., Ltd.
- Kawaoka Machinery and Electric (Nantong) Co., Ltd.
- Kinetic Engineering Limited
- KSL Cleantech Ltd.
- Lohia Auto Industries
- Mahindra & Mahindra Ltd.
- Omega Seiki Private Limited
- Piaggio Group
- Prozza Hirose Manufacturing Inc. (Philippines)
- Shado Group International Pte. Ltd.
- Skyride Automotive
- SL Mobility
- Speego Vehicles Co. Pvt. Limited
- Terra Motors Corporation
- Xianghe Qiangsheng Electric Tricycle Factory
For more information about this report visit https://www.researchandmarkets.com/r/mqyq0s
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