Asia Three-Wheeler Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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:

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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.

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