India Electric Three-Wheeler Market to Grow with a CAGR of 12.60% through 2031
India’s electric three-wheeler market is expanding
rapidly due to rising fuel costs, last-mile delivery demand, and supportive
policies. Technological advances and growing urban adoption are driving growth
in the forecast period 2027–2031.
According to TechSci Research report, “India
Electric Three-Wheeler Market – By Region, Competition, Opportunities & Forecast, 2021-2031F”, The India Electric Three-Wheeler
Market was valued at USD 1.65 Billion in 2025 and is expected to reach USD 3.36
Billion by 2031 with a CAGR of 12.60% during the
forecast period. The electric three-wheeler market in India is expanding
rapidly, driven by economic pressures, environmental concerns, and supportive
government policies. Soaring fuel prices and cost challenges in last-mile
logistics are prompting fleet operators to shift toward electric alternatives.
As per the VAHAN Dashboard (Ministry of Road Transport & Highways),
electric three-wheeler registrations reached nearly 700,000 units in FY25,
marking an 11% year-on-year increase and accounting for over 57% of all
three-wheeler registrations. Government schemes like FAME II, along with state-level
subsidies and stricter emission norms, are accelerating EV adoption across
passenger and cargo segments. Technological advancements such as swappable
lithium-ion batteries, improved powertrains, and connected vehicle systems are
making EVs more efficient and fleet-friendly. Startups and OEMs are investing
in durable designs and shared ownership models to reduce capital costs.
However, challenges remain, including high upfront costs, limited rural
charging access, battery standardization issues, and difficulty securing loans
in the informal sector. Supply chain disruptions and concerns about battery
life and servicing availability also impact adoption. As the market matures,
stronger coordination among stakeholders, infrastructure development, and
financial inclusion for small operators will be vital to sustaining growth and
addressing urban mobility and clean transport goals in India.
Browse over India Electric Three-Wheeler Market data Figures
spread through XX Pages and an in-depth TOC on " India Electric Three-Wheeler Market"
India Electric Three-Wheeler Market is Segmented By
Vehicle Type, By Battery Capacity, By Type, and By Region.
The India electric three-wheeler market is primarily
segmented into passenger carriers and load carriers, with passenger carriers
dominating total sales volume. These vehicles are extensively used for urban
and semi-urban last-mile transport due to low operating costs and government
incentives. Their popularity is highest in densely populated cities and Tier
II/III towns, where short-distance shared mobility is in high demand. Load
carriers, on the other hand, are witnessing steady growth, especially among e-commerce,
FMCG, and small business segments, for last-mile cargo deliveries. As companies
prioritize zero-emission logistics, electric load carriers are gaining traction
for their cost-efficiency and compliance with low-emission zones. Startups and
OEMs are increasingly focusing on dual-utility models to cater to both
passenger and goods segments. The demand for both vehicle types is expected to
rise as fleet operators, gig economy workers, and state-supported schemes drive
electrification in commercial three-wheeler mobility across urban and
peri-urban India.
South India is emerging as the fastest-growing region in the
electric three-wheeler market, led by states like Tamil Nadu, Karnataka,
Telangana, and Andhra Pradesh. The region benefits from proactive state EV
policies, strong manufacturing ecosystems, and robust urban transport
infrastructure. Cities such as Bengaluru, Hyderabad, and Chennai are witnessing
rapid adoption of electric three-wheelers for both passenger and cargo
segments, driven by high urban density and tech-enabled delivery demand. Additionally,
active support from state governments through subsidies, permits, and battery
swapping pilot projects is accelerating market penetration. South India's
organized e-commerce and logistics sectors further boost growth in this region.
Major Market Players Operating in India Electric
Three-Wheeler Market Are:
- Atul
Motors Private Limited
- Euler
Motors Private Limited
- Kinetic
Green Energy & Power Solutions Ltd
- Lohia
Auto Industries Limited
- Mahindra
Electric Mobility Limited
- Omega
Seiki Mobility Private Limited
- Piaggio
Vehicles Pvt. Ltd
- Saera
Electric Auto Pvt. Ltd
- Terra
Motors India Private Limited
- Vani
Electric Vehicles Pvt. Ltd.
Download Free Sample Report
Customers can also request for 10% free customization
on this report.
“India's electric three-wheeler market is experiencing
strong growth, driven by rising fuel costs, increased demand for efficient
last-mile transport, and supportive government policies. The shift toward
electric mobility is supported by advancements in battery technology, swappable
battery systems, and connected vehicle features that enhance performance and
operational efficiency. Small businesses and urban transport operators are
increasingly adopting electric three-wheelers due to their lower running costs
and environmental benefits. However, the market faces challenges such as high
initial costs, limited access to charging infrastructure in rural areas, and
financing difficulties. Continued innovation, infrastructure development, and
regulatory support will be vital for long-term growth.” said Mr. Karan Chechi,
Research Director of TechSci Research, a research based global management
consulting firm.
“India Electric Three-Wheeler Market By Vehicle Type (Passenger Carrier and Load Carrier), By Battery Capacity (<101Ah and >101Ah), By Type (Lead Acid and Lithium Ion), By Region, Competition, Opportunities and Forecast, 2021-2031F”, assesses the market's future growth potential and provides data on
market size, trends, and forecasts. It aims to offer comprehensive market
insights, helping decision-makers make informed investment choices. The report
also highlights emerging trends, key drivers, challenges, and opportunities in
the India Electric Three-Wheeler Market.
Contact Us-
TechSci Research
LLC
420 Lexington Avenue, Suite 300,
New York, United States- 10170
M: +13322586602
Email: sales@techsciresearch.com
Website: www.techsciresearch.com