India's Green Mobility: Rising Electric Three-Wheelers(E3Ws)
According to a report by the International Renewable Energy Association (IRENA) published in CY 2021, South East Asia is expected to see a significant shift towards electric vehicles. By 2025, it is projected that 20% of all cars on the road in the region will be electric.
Rise in Demand for Urban Last Mile Delivery
The World Economic Forum's report highlights a 78% increase in demand for Urban Last Mile Delivery by 2030. This will result in a 36% surge in delivery vehicle deployment in the world's top 100 cities.
The EV Revolution in India: From E3Ws to Sustainable Mobility
At the turn of the millennium, electric vehicles (EVs) were scarce on Indian roads, with only a few electric three-wheelers (e3Ws) visible. However, since then, e3Ws have emerged as pioneers of sustainable mobility, witnessing a remarkable rise in demand, particularly in urban and rural areas. The segment is expected to grow at a Compound Annual Growth Rate (CAGR) of around 70% by 2030.
The 3-Wheeler Industry Driving India's Transition to Sustainable Mobility
India, now a fast-growing economy, is rapidly transitioning towards sustainable and green mobility, with the government playing a leading role. The three-wheeler industry has emerged as a significant contributor, especially in Last Mile Delivery (LMD), cargo, and passenger transportation. e3Ws are becoming increasingly prevalent in both these domains.
Rapid Adoption and Impressive Growth of e3Ws in India
The increasing popularity of e3Ws is evident from the latest data released by the Society of Indian Automobile Manufacturers (SIAM). Between January and June 2023, 16,552 e3Ws were manufactured, a significant increase compared to the 7,522 e3Ws manufactured during the same period the previous year.
Economic and Environmental Advantages of e3Ws
e3Ws offer cost-effective transportation solutions for logistics companies, reducing operational expenses significantly. Besides, these vehicles have zero-tailpipe emissions, making them environmentally friendly and contributing to cleaner air.
Government Incentives Driving EV Adoption
The Government of India (GoI) has introduced various initiatives to encourage the adoption of EVs. These include subsidies, exemptions, tax breaks, and other financial incentives provided under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme.
Manufacturers' Commitment to e3Ws and R&D
Recognizing the potential of the e3W market, several manufacturers have launched their electric three-wheelers in India. These companies are continuously investing in research and development to enhance performance, reduce costs, and improve reliability.
Prominent automakers like Mahindra's Last Mile Mobility (LMM) and Bajaj Auto have witnessed significant sales growth in the e3W segment, showcasing the positive market response to these eco-friendly vehicles.
The establishment of charging stations and infrastructure is a crucial aspect of the EV adoption process in India. Efforts are underway to make charging facilities more accessible to all.
Financing Solutions to Boost e3W Sales
Greaves Electric Mobility Private Ltd (GEMPL) has taken a step towards increasing e3W sales by partnering with Bike Bazaar Finance to offer financing options to potential buyers.
To conclude, with big brand names nationally and internationally like Mahindra, Tata and Tesla, etc envisioning to make EVs big in India, e3Ws are here to stay and penetrate deep into the growth trajectory of the country.
It is estimated that e3Ws penetration will rise from current 8% to 16% by FY2025 and to 40% by FY2030.
So, India gear-up for a sustainable transportation era in days to come and contribute your best to this growing India’s decade.
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