Asia Pacific electric three-wheeler market is estimated to be 156,397 units in 2021 and is projected to grow to 486,446 units by 2026, at a CAGR of 25.5%
during the forecast period. Electric three-wheelers run on the electrical energy stored in the rechargeable battery unit. These battery units can either be charged through an external power source or can be swapped with a charged one.
New York, April 08, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Asia Pacific Electric 3-Wheeler Market by End-use, Range, Battery type, Battery Capacity, Motor Power and Country - Forecast to 2026" - https://www.reportlinker.com/p06058048/?utm_source=GNW
Electric three-wheelers are more efficient and ecofriendly than conventional ICE three-wheelers.
With the increasing stringency of government mandates, the focus of three-wheeler manufacturers has shifted to efficiency, emission-free propulsion, innovative technologies, and revised environmental standards. The increasing adoption of electric three-wheelers and improved charging infrastructure (in terms of network and capacity) in countries will change the market scenario in the coming years.
The recent developments in the electric three-wheeler market have introduced batteries with improved specifications that are said to be at the heart of any electric three-wheeler.These advancements in batteries are expected to increase the performance and range of electric vehicles.
The range is one of the most important reasons that users are still a bit hesitant to prefer electric three-wheelers over ICE three-wheelers.However, government bodies are working with manufacturers to provide the necessary charging infrastructure network.
Because of all these benefits, electric three-wheelers are the future of the automotive industry.
COVID-19 has had a significant impact on the electric three-wheeler market.Both the production and sales of new electric three-wheeler came to a halt as the whole ecosystem got disrupted.
OEMs had to wait until lockdowns were lifted to resume production, which affected their business.Post the pandemic, the demand for new electric three-wheeler is expected to show an increase as economies are recovering steadily.
Nevertheless, another wave of COVID-19 due to newer strains may hamper the recovery in some countries.Subsequently, electric three-wheeler manufacturers would need to adjust the production volume based on the COVID-19 scenario across different countries.
In addition, component manufacturing too was suspended, and small Tier II and Tier III manufacturers are facing face liquidity issues. Thus, production suspension during the outbreak and lower demand post the pandemic might have an unprecedented impact on electric three-wheeler providers.
*GROWING ADOPTION OF EECTRIC THREE-WHEELER BY LOGISTICS COMPANIES TO DRIVE THE MARKET*
Various retail, logistics, and courier companies have already started adopting electric three-wheelers on a small scale.With advancements in technology and the development of more vehicles, the adoption rate of electric three-wheeler load carriers will grow exponentially.
For instance, in February 2021, Flipkart announced that it is planning to deploy 25,000 electric vehicles by 2030 in line with its aim to transition its entire logistics fleet across cities to green energy vehicles.Flipkart’s EV fleet will comprise two-, three-, and four-wheeler vehicles designed and assembled in India.
The company has partnered with prominent electric three-wheeler manufacturers like Mahindra Electric and Piaggio to make customized vehicles. Also, in February 2021, Amazon India and Mahindra Electric announced a partnership under which the ecommerce company deployed the latter’s electric three-wheeler in its delivery network as part of a commitment toward strengthening electric mobility in the country.
Although electric three-wheelers have been predominantly successful in short-distance passenger applications so far, these are now being seen as promising transportation modes for last-mile load delivery as well.Several startups are entering the market to provide customized electric three-wheeler load carrier solutions.
This is further driving the growth of the segment.In August 2019, Euler Motors, a Delhi-based automotive tech startup, launched an electric three-wheeler load carrier, targeting fleet operators working for ecommerce companies.
The company has already set out a fleet of some 140 prototype electric three-wheeler delivery vehicles that are on trial runs for over a year in the operations of companies like BigBasket, Blue Dart, Ecom Express, and Udaan.
The supply chain industry is constantly transforming by adopting green technology for transportation.An increased need for efficiency, differentiated routes to market, access to new geographies, and acceptance of digital supply chain solutions are transforming the supply chain.
With transformations in the supply chain, the demand for specialized and customized electric three-wheelers is growing.For instance, in 2021, Omega Seiki Mobility launched an electric three-wheeler with a refrigerated carriage purposely designed for pharmaceuticals and food delivery.
The company also aims to assist in the COVID-19 vaccine drive by providing vehicles for last-mile delivery.Transportation of refrigerated goods will have significant growth in coming years, especially in Asia Pacific.
Goods such as fruits and vegetables, meat, fish, poultry, dairy products, confectionery, and pharmaceuticals require delicate transportation under certain controlled temperatures. This is estimated to drive demand for electric three-wheeler refrigerated load carriers over the estimated period
*Last-mile delivery to boost the market of Electric three-wheeler in India*
The market for electric three-wheelers in India is the largest in Asia Pacific and is expected to witness high growth in the long term.India is amongst the top consumers of electric three-wheelers.
The low emission vehicle industry in India is developing rapidly with the support of the government and manufacturers such as Mahindra & Mahindra, Atul Auto, Piaggio, and Lohia Auto.India is one of the largest contributors to greenhouse gases and has pledged to reduce emissions from petrol and diesel cars during the next few decades.
This initiative by the Indian government is expected to lead to significant demand for electric three-wheelers in the country.The government of India has announced various plans to support the development of electric three-wheeler infrastructure.
For instance, the Faster Adoption and Manufacturing of Hybrid and EV (FAME) II Scheme, effective from April 2019, has an outlay of USD 1.4 billion to be used for upfront incentives on the purchase of EVs (USD 1.19 billion) and for supporting the deployment of charging infrastructure (USD 1.9 million). This phase aims to generate demand by supporting 0.5 million electric three-wheelers.
Government policies have encouraged private logistics companies to adopt electric three-wheelers.The motivation for adoption is mostly to reduce carbon footprint.
The shift to electric three-wheelers is also in line with the Government of India’s commitment to reduce carbon footprint, which encourages fuel-based three-wheelers to be replaced with electrically powered vehicles. According to industry experts, the addition of electric vehicles will help cut down last-mile delivery costs by up to 50% and carbon footprint by more than 40%.
Large logistics spaces, mainly for lease, are growing rapidly in India.The drivers of growth for logistics, supply chain, and warehousing include the demand from third-party logistics operators and ecommerce companies.
This is fuelling the demand for electric three-wheelers in intracity transportation.
*Favourable government policies in Bangladesh to drive the market*
Electric three-wheelers are popularly known as easy-bikes and Tom-Toms in some districts of Bangladesh.They have been in use in the country since 2004 and become one of the most widely used means of transportation for the masses in both urban and rural areas.
The country is significantly focused on the adoption of electric vehicles.The government is rolling out policies to increase the penetration of electric vehicles, which, in turn, will drive the electric three-wheeler market.
In 2020, the government drafted an industrial policy to try and attract electric vehicle production lines and even solar-powered electric-vehicles to the country.
Electric three-wheelers are increasingly replacing ICE three-wheelers in Bangladesh.Conventional three-wheeler is widely used in the country for short distance commuting.
Comfort, lower travel cost than conventional three-wheelers, and no harmful effects on the environment are the prominent drivers of electric three-wheeler adoption in the country.The adoption of electric three-wheelers is expected to increase the physical and social mobility of ordinary people.
Merits of electric three-wheelers as an easy and comfortable means of transportation and suitable government policies are propelling the growth of the market in the country.Automobile Industry Development Policy-2020 focuses on electric vehicles (EVs).
*The Bangladeshi government is preparing an auto industry policy that will call for at least 15% of registered vehicles to be powered by electricity by 2030.*
The study contains insights from various industry experts, ranging from component suppliers to tier 1 companies and OEMs. The break-up of the primaries is as follows:
• By Company Type: Tier 1 - 57%, Tier 2 – 29%, Others - 14%
• By Designation: C level - 54%, D level - 32%, Others - 14%
• By Region: India- 57%, Nepal - 14%, Bangladesh - 12%, Sri Lanka -10%, Others-7%
Major players profiled in the report are Mahindra & Mahindra Ltd. (India), Atul Auto Ltd. (India), Piaggio Group (Italy), Lohia Auto Industries (India), and Kinetic Engineering Limited (India).
*Research Coverage*
The report segments the Asia Pacific electric three-wheeler market and forecasts its size, by volume, on the basis of country (Bangladesh, Nepal, India, Sri Lanka, China, Japan, Thailand, the Philippines, Indonesia, and Singapore), by end-use (passenger carrier & Load carrier), range (upto 50 miles & above 50 miles), battery type (lead acid & lithium ion), battery capacity (below 3kWh, 3kWh-6kWh, above 6kWh), motor power (below 1,000 W, 1,000-1,500 W & above 1,500 W). It also covers the competitive landscape and company profiles of the major players in the Asia Pacific electric three-wheeler market ecosystem.
*Key Benefits of Buying the Report:*
• The report will help market leaders/new entrants in this market with information on the closest approximations of revenue and volume numbers for the Asia Pacific electric three-wheeler market and its sub segments.
• This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
• The report will also help the market players understand the impact of COVID-19 on electric three-wheeler market.
• The report also helps stakeholders understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.
Read the full report: https://www.reportlinker.com/p06058048/?utm_source=GNW
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