Asia Three-Wheeler Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by vehicle type (Passenger Carrier and Goods Carrier), by Fuel Type (Petrol, CNG/LPG, Diesel and Electric) and Geography

Market Snapshot

Summary Graph
Study Period: 2018 - 2026
Base Year: 2020

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Market Overview

The Asian three-wheeler market is expected to grow at a CAGR of 9.07%, during the forecast period.

In many Asian countries, three wheelers are used as a last-mile connectivity option and also to transport passengers and goods over short-to-medium distance. Inadequate accessibility or low frequency of public transport especially in rural areas, unorganized logistic infrastructure and increasing unemployment in certain countries are some of the drivers for this market. The introduction of alternate fuel engines for three wheelers such as LPG and CNG has rejuvenated the market in some countries by cutting down the fuel and maintenance costs. Rising adoption of electric powertrains and e-rickshaws is also expected to increase the demand for three-wheelers across the region. Companies like Mahindra, Piaggio and KSL Cleantech are investing considerably towards the production of electric products. A major restraint to the three-wheeler industry is the tough competition in passenger transportation segment from ride sharing companies like Uber, Ola, Grab etc. Due to growing disposable income even in developing countries, people are opting for vehicles from these ride sharing companies as they offer more comfort. Also, the high base and liquidity constraints in the Indian economy, is decreasing the potential financing avenues available for people who want to purchase three-wheeler.

The market for passenger transportation segment is expected to be greater than that of the goods carrier segment. By fuel type, electric three wheelers segment is expected to be the fastest growing one. India is expected to be the largest market among all the Asian countries.

Scope of the Report

The Asia Three-Wheeler Market covers the latest trends in the three wheeler vehicles, new product developments, growing demand across the region and market share of manufacturers. The scope of the report includes:

Vehicle Type
Passenger Carrier
Goods Carrier
Fuel Type
Petrol
CNG/LPG
Diesel
Electric
Geography
China
India
Indonesia
Bangladesh
Sri Lanka
Others

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Key Market Trends

Industry’s Shift Towards the Adoption of Electric Three Wheelers

The three-wheeler industry in the Asian geography is experiencing a shift towards the adoption of electric vehicles. Countries like India, China and Thailand are the forefront of this transition. Government regulations and incentives are paving way for the development of market in this region. New firms are coming up and both new and old companies are developing products to compete and thrive in the evolving market space.

India is poised to be the largest market for electric three wheelers. As part of the country’s initiative to push for e-mobility in a big way, the government has earmarked around INR 10,000 crores under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme. Recently, the government has also proposed doubling the subsidy for electric three-wheelers to INR 20,000 per kWh to bring down the initial prices of electric three-wheelers on a par with IC Engine three-wheelers. This has shown a positive effect on the market and since the past two years, sales of electric three wheelers have overtaken the IC Engine ones.

The Electric Vehicle Association of Thailand (EVAT) is in talks with the Land Transport Department to revise the related laws to enable new registration of three-wheelers, especially focusing on electrified one’s. As of May 2019, there were around 60 electric three wheelers in the country and with the revision of laws, the market in the country is expected to grow at a healthy late.

Trend 1

India poised to be the largest market for three wheelers in Asia

The market for three wheelers in India is expected to grow at a rate close to 15% over the next five years. According to the Society of Indian Automotive Manufacturers, more than 700,000 three wheelers were produced in the country.

The abolition of permit regime in major three-wheeler markets like Gujarat and Maharashtra along with issuance of fresh permits in states like Karnataka, Delhi, Telangana and Andhra Pradesh has extended the much-needed impetus for the growth of the domestic three-wheeler market. Among the different regions, the Western and Central regions are the largest three-wheeler markets, followed by South and East. With many states in the country working aggressively on the electric vehicle policy and states like Karnataka proposing a complete phase-out of two-stroke engine three wheelers coupled with a ban on diesel vehicles, the Southern region market is expected to witness a significant growth over the forecast period.

India is also a major exporter of three-wheelers, and over the past years, the share of exports has expanded, driven by increasing penetration in Asian and African markets. Over the past decade, three-wheeler exports have grown at a rate of 14%, and currently account for nearly 40% of total production.

Trend 2

Competitive Landscape

The market for Asian three wheeler vehicles is characterized by major players mostly from India. Bajaj, Piaggio, TVS Motors, Mahindra etc. are some of the major players in the market. Bajaj is expected to be the largest player in the market and its exports its products to nearly 35 countries. Companies are also focusing on export destinations and a strong established base there can drive their revenues up.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vehicle Type

      1. 5.1.1 Passenger Carrier

      2. 5.1.2 Goods Carrier

    2. 5.2 Fuel Type

      1. 5.2.1 Petrol

      2. 5.2.2 CNG/LPG

      3. 5.2.3 Diesel

      4. 5.2.4 Electric

    3. 5.3 Geography

      1. 5.3.1 China

      2. 5.3.2 India

      3. 5.3.3 Indonesia

      4. 5.3.4 Bangladesh

      5. 5.3.5 Sri Lanka

      6. 5.3.6 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share**

    2. 6.2 Company Profiles*

      1. 6.2.1 Bajaj Auto Limited

      2. 6.2.2 Mahindra and Mahindra Ltd

      3. 6.2.3 Lohia Auto Industries

      4. 6.2.4 TVS Motor Company

      5. 6.2.5 Piaggio & C. SpA

      6. 6.2.6 ChongQing Zongshen Tricycle Manufacturing Co., Ltd.

      7. 6.2.7 Atul Auto Limited

      8. 6.2.8 Scooters India Ltd.

      9. 6.2.9 Ningbo Dowedo International Trade Co., Ltd.

      10. 6.2.10 ElecTrike Japan

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Asia Three Wheeler Market market is studied from 2018 - 2026.

Bajaj Auto Limited, Mahindra and Mahindra Ltd, Piaggio & C. SpA, TVS Motor Company, Lohia Auto are the major companies operating in Asia Three Wheeler Market.

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