With favourable economic conditions and the government’s focus on electric commercial infrastructure, electric three-wheeler sales in the country saw 5.34 per cent year-on-year growth in 2024.

According to Vahan data, 6,14,677 electric 3Ws were registered between January and December 2024, while 5,83,476 electric 3Ws were registered during the corresponding period in 2023.

Credit rating agency ICRA has forecasted that the electric 3W segment is likely to account for 14 to 16 per cent of new 3W sales (excluding rickshaws) by FY2025, up from the present 8 per cent. The penetration is estimated to rise to 35-40 per cent by FY2030 as the products gain more acceptance, and financing-related challenges subside.

“In 10M FY2023, the 3Ws (excluding rickshaws) recorded an electric penetration of 8 per cent, compared to 4 per cent for two-wheelers and 1 per cent for passenger vehicles. While sales dropped substantially after the pandemic, they rebounded healthy in the current fiscal year, surpassing pre-pandemic levels by a solid margin. A favourable regulatory environment with Central and State government subsidies to lower capital costs, as well as reduction or waiver of registration fees, road taxes and permit requirements, continue to be supportive of e-auto adoption. Coupled with the inherently lower-running costs, this results in a much lower (40-45 per cent) total cost of ownership (TCO) than conventional diesel or CNG 3Ws, making the conversion to e-autos an attractive proposition,” said Kinjal Shah, Vice President and Co Group Head, Corporate Ratings, ICRA.

In H2, between July and December , 3,07,450 electric three-wheelers were registered. According to BNP Paribas, in September, the electric 3W sales volume grew 9 per cent y-0-y and 3 per cent month-on-month on September 24. EV penetration in 3Ws improved to 58.9 per cent month-on-month on September 24 from 57.5 per cent in August 24. Bajaj Auto’s market share improved the most month-on-month to 8.0 per cent on September 24 (vs 6.6 per cent in August), followe d by Mahindra and Mahindra (MM) (9.8 per cent in Sep-24 from 8.5 per cent in August 24).

“Among the States we track, E3W penetration in Sep-24 rose the most month-on-month in West Bengal and deteriorated the most in Rajasthan. We continue to see policy continuity and increased focus of OEMs (especially from Bajaj Auto and MM) by launching their models in multiple cities,” said BNP Paribas.