Virendra Pandit
New Delhi: Electric three-wheelers have caught India’s attention and their sales have doubled since 2019, as the total sales of three-wheelers reached a record over one lakh each in September and October this year.
Overall, 102,426 three-wheelers were sold in September and 100,987 in October 2023, a significant 51 percent increase compared to the pre-pandemic numbers of just 58,485 and 63,042 units in these two festive months in 2019, the media reports said on Tuesday.
The transition from petrol and diesel-run to battery-run passenger and carrier rickshaws has also picked up the pace.
The three-wheelers, popularly known as autos or autorickshaws, have dominated Indian roads since the 1960s when Bajaj Auto and Piaggio started their manufacturing in the country. Gradually, these autos have shifted from hydrocarbon fuels to electric batteries.
The growing interest in EVs in the three-wheeler segment is proved by the numbers as they accounted for nearly 56 percent of total three-wheeler sales in September, while final October data are yet to be released, according to the Federation of Automobile Dealers Associations (FADA).
“Unlike diesel or petrol vehicles, electric three-wheelers do not require permits to operate in city areas, which were previously distributed under a quota system, limiting the number of permits issued. This shift has benefited the market significantly. For urban and semi-urban youth, it has become a substantial source of employment,” said Manish Raj Singhania, the president of FADA.
“In places like Raipur, electric vehicle penetration is around 80-90 percent. Three-wheeler consumers have come to realize that the operating cost of EVs is lower.”
Among the industry players, Bajaj Auto leads with a 35 percent market share, followed by Piaggio Vehicles (7.4 percent), Mahindra and Mahindra (6 percent), Y C Electric (4 percent), Saera Electric Auto (3 percent), Dilli Electric Auto (2.3 percent), Atul Auto (2 percent), and TVS Motor (1.4 percent).
Most of these players are investing heavily in EVs because of the growing interest in the electric segment. Bajaj Auto, which dominates the petrol segment, is likely to increase its market share with its aggressive EV initiatives. Players like TVS Motor are also focusing on electric three-wheelers.
According to FADA estimates, the increase in three-wheeler sales has also contributed to a decrease in crime rates in cities. “The shift of people from rural to urban areas has triggered this growth. For young individuals, this provides an opportunity to earn an income ranging from Rs 15,000 to Rs 40,000 per month, exceeding that of a recent engineering graduate. Wherever three-wheeler sales have increased, crime rates have decreased,” Singhania stated.