Electric three-wheelers' share rises to over 52%

Vijay C Roy

Chandigarh, April 6

Though the degree of adoption or even the penetration of electric vehicles may not be at the desired levels, the share of electric three-wheelers has increased significantly to more than 52% in the fiscal year 2022-23.

Over 4 lakh units sold in FY 2022-23

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• In FY23, as many as 7,67,071 three-wheelers were sold, out of which 4,01,838 were electric three-wheelers as compared to 1,78,169 units sold in FY22
• According to the data based on Vahan database, India’s commercial EV market has seen rapid growth in recent years, making up a total of over 52% all the three-wheelers

In FY23, as many as 7,67,071 three-wheelers were sold, out of which 4,01,838 were electric three-wheelers — passenger and cargo-transporting models as compared to 1,78,169 in FY22, as per data of Society of Electric Vehicle Manufacturers of India (SMEV).

According to the data based on Vahan database, India’s commercial EV market has seen rapid growth in recent years, making up a total of over 52% all the three-wheelers.

Federation of Automobile Dealers Associations (FADA) president Manish Raj Singhania said electrification in the three-wheeler segment reached 52%, primarily driven by the e-rickshaw segment. The availability of finance, along with alternative fuels and state subsidies has contributed to the growth of this segment.

As many as 25 states in India have now announced their own state EV Policy, focusing on both demand-side incentives, including vehicle purchase subsidies, tax benefits and incentives for charging infrastructure, as well as supply-side incentives that promote investments in EV manufacturing.

Manufacturers shared that the FAME (Faster Adoption and Manufacturing of Electric Vehicles) Policy and the government’s continuous support in the growth of the EV industry through subsidies, favourable regulations, policies, 100% FDI approval, push towards battery R&D and improved charging infrastructure have all contributed in a big way to easing EV adoption in the country.

The major manufacturers include Mahindra Electric, YC Electric Vehicle, Saera Electric Auto, Champion Poly Plast and Dilli Electric. The list is also seeing a significant rise by new entrants in this space, indicating the demand potential of the segment.

It is worth noting that the two low-hanging fruits of the sector — two and three-wheelers — are leading the electric vehicle drive.