Three-Wheeler Resurgence: How Electric Vehicles Propel Sales Beyond 100,000 Units
In the late 1950s, a unique three-wheeler design gained approval from then Prime Minister Jawaharlal Nehru and Home Minister Morarji Desai, leading to its production by a homegrown automaker and an Italian company. Fast forward 64 years, and three-wheelers have not only become a common sight on Indian roads but are experiencing a revival, with sales surpassing 100,000 units in both September and October. This resurgence is attributed to a rising interest in electric vehicles (EVs) within the three-wheeler segment, accounting for approximately 56 percent of overall sales in September, according to data from the Federation of Automobile Dealers’ Associations (FADA).
While October”s retail figures are pending, data from the VAHAN portal indicates a remarkable 51 percent year-on-year increase, reaching 100,987 units after hitting 102,426 units in September.
The surge in sales is primarily driven by the growing appeal of electric three-wheelers, which do not require permits to operate in city areas, unlike their diesel or petrol counterparts. This shift has brought significant benefits to the market, providing substantial employment opportunities for urban and semi-urban youth. Cities like Raipur are experiencing an 80-90 percent penetration of EVs in the three-wheeler segment, highlighting the lower operating costs of electric vehicles.
Market dynamics reveal a leading position held by one automaker with a 35 percent market share, followed by several others, including those investing heavily in EVs due to the growing demand. Industry leaders emphasise innovation in battery technology and a commitment to driving greater adoption.
Experts predict that the automaker dominating the petrol segment may further increase its market share through aggressive EV initiatives, while other companies are focusing on capturing a share of the growing EV three-wheeler market. The shift of people from rural to urban areas is a contributing factor, offering young individuals substantial income opportunities ranging from ₹15,000 to ₹40,000 per month. Interestingly, regions experiencing a surge in three-wheeler sales have witnessed a decline in crime rates, underlining the broader positive societal impact of this automotive resurgence.
The remarkable resurgence of three-wheelers in India, marked by sales exceeding 100,000 units in consecutive months, underscores a significant shift in the automotive landscape. Fuelled by a burgeoning interest in electric vehicles, particularly three-wheelers, this trend has not only transformed the urban and semi-urban employment landscape but also contributed to the decline in crime rates in regions experiencing increased sales. The success of this market expansion lies in the adaptability and lower operating costs of electric three-wheelers, presenting a compelling case for sustainable and employment-driven growth. As the industry leaders continue to invest in advanced battery technology and focus on innovation, the future seems promising for the three-wheeler segment, reinforcing its position as a player in India”s evolving automotive narrative.
