Global E-Trikes Market: Current Analysis and Forecast (2023-2030)

The Global E-Trikes market has witnessed rapid growth from 2020 to 2022. Some of the factors attributed to the growth were the high demand for urban mobility solutions in the major cities of the Asia-Pacific region. These cities are majorly located in countries such as India, China, Vietnam, etc. which are grappling with high pollution due to a higher degree of urban migration.

As three-wheelers have been a crucial component of urban mobility in developing and underdeveloped countries their presence on roads increased substantially leading to result in high pollution caused by conventional fuels such as Diesel and petrol. In order to curb the respective scenario and alleviate the worsening air pollution many of the countries started mandating policies for the transition of three-wheelers from conventional fuel to electric counterpart.

For instance, in 2019, the Government of India launched its FAME II scheme with a total investment of USD1.5 billion to support 5,00,000 e-three-wheelers, 7,000 e-buses, 55,000 e-passenger vehicles, and a million e-two-wheelers.

The FAMEII scheme announced for the period of 2019-23, extensively increased the adoption of electric vehicles in India, especially the electric three-wheeler segment in both passenger and goods categories by grabbing 47% share in the overall three-wheeler category in India.

Another factor that has majorly contributed to the promulgation of the demand for e-trikes is the lower running cost of the vehicles as compared to their conventional counterparts. As electric trikes are majorly used in passenger-carrying roles in major markets such as China, India, etc., the focus of the customers is primarily on the cost-benefit part. As electricity prices and maintenance cost is low in electric three-wheelers it has become an economical solution for the customers thereby, substantially instigating the adoption of the E-trikes category.

Some of the factors attributed to its high market share are burgeoning ecommerce industry in the region that has extensively adopted e-trikes for short-distance delivery. The demand has also been supported by the rising focus of the individuals and business to opt for environment-friendly solutions in mobility to reduce the carbon footprint.

In line with this trend many of the OEMs have aligned their efforts to enhance their market presence. For instance, in 2021, Piaggio Groups and British Petroleum (BP) announced their collaboration for offering comprehensive set of services for the growing electric two-and-three-wheeler market in Europe, Asia-pacific region.

Various automakers have also initiated processes to adopt electric trikes to reduce the dependence on the existing conventional engine three-wheelers. In 2023, GerWeiss Motors, a Philippines-based automaker, announced its plans to introduce e-trikes in the country. According to the company, there are currently 100,000 gasoline-based three-wheelers in the country, producing 260,000 tons of carbon dioxide, which can be replaced with their electric counterparts.

China is one of the largest market for electric-trikes market with high adoption of electric-three wheelers in passenger and cargo category. With the high concentration of population in major urban centre as Shanghai, Beijing, Guangzhou, Chongqing, etc., a major focus has been shifted towards e-trikes used for carrying passengers and easing transportation for short distances. China is also focusing on reducing its pollution level from the adoption of electric vehicles that has also played a pivotal role in market growth. Moreover, the country is also focusing on the expansion of its charging stations which would be able to attribute to the upcoming surge in the adoption of electric vehicles. According to International Energy Association (IEA), by 2023, China had 1.76 million charging stations present which have 760 thousand fast charging stations included. This high level of integration of charging infrastructure in the country has comprehensively assisted the sales of electric vehicles including the e-trikes market.

Some of the major players operating in the market include: Mahindra Electric Mobility Ltd, Piaggio & C.SpA, Terra Motors, Kinetic Green Energy & Power Solutions, Gayam Motor Works, Omega Seiki Pvt. Ltd, E-Tuk, Body Vehicle Group Pvt Ltd, Atul Auto Limited, Saera Electric Auto Pvt Ltd., etc.