Electric 3W Surge: India Leads Global Growth in 2024

In spite of the global three-wheeler (3W) market reducing 5 per cent from the previous year, electric 3W sales grew more than 10 percent to surpass 1 million vehicles in 2024. Electric 3W sales represented virtually one-quarter of all 3W sales, up from one-fifth in 2023, it claimed.

India’s Electric 3W Market Leadership

India remains to be the world’s biggest market for electric three-wheelers momentarily year straight as sales increased virtually 20 percent to get to about 7 lakh automobiles in 2024, the International Energy Firm (IEA) stated in a record.

“Electrification of 3Ws in China has gone stale at much less than 15 per cent over the past 3 years. In 2023, India overtook China to come to be the world’s largest market for electric 3Ws, and it kept this placement in 2024, with sales growing close to 20 per cent year-on-year to reach almost 7,00,000 cars,” it stated.

As an example, the Indian market leader, Ola, launched its S1X entry model, furnished with a 2 kWh battery and 6 kW height power, at a price tag of Rs 70,000 – less than the ordinary cost of the five very successful ICE 2W versions.

This expanding fad, it stated, looks set to continue thanks to policy assistance under the brand-new PM E-DRIVE plan, which assigned budget in 2024 to support the roll-out of greater than 3,00,000 electric 3Ws for business usage – for which the complete fleet (electrical and ICE) was approximated at greater than 10 million automobiles in 2023.

Policy Support for Electric 3W Adoption

“Policy support is likewise helping to bridge the price gap in between electric and ICE 2W models, with the brand-new PM Electric Drive Change in Cutting-edge Car Enhancement (PM E-DRIVE) plan continuing financial support formerly given under both Faster Fostering and Production of Electric Automobiles (POPULARITY)-II and Electric Movement Promo Scheme actions,” IEA said.

Electric 2W Production Capacity in India

On the production side, the 80 biggest electric 2W makers in India represented a combined production capacity of 10 million electric 2Ws in 2024, almost 8 times the domestic sales that year. The capability is anticipated to increase to 17 million electric 2Ws in the near term, if all OEM announcements concern fulfillment.

“India’s significantly vibrant electrical 2W market held a total of 220 OEMs in 2024, up from 180 in 2023, although the 4 market leaders made up an integrated 80 per cent of the 1.3 million electrical 2Ws sold in the nation in 2024 (6 percent of the general 2W market),” the record stated.

This offers purchase rewards for electric 2Ws (offering acquisition aids of up to Rs 5,000/ kWh for 2Ws fitted with lithium-ion batteries), in addition to for 3Ws and other arising EV groups (specifically excluding exclusive vehicles), with a complete budget of USD 1.3 billion.

“While the cheapest battery electrical vehicle version was produced in your area by a Chinese OEM (SAIC’s city auto, the MG Comet EV, valued under USD 8,000), the average rate of imported Chinese BEVs was twice that of those made by domestic manufacturers,” it said.

IEA said China, India and Southeast Asia stay the globe’s biggest 2/3W markets, accounting for around 80 percent of 2024 international sales, with 2/3Ws serving as the main mode of private traveler transportation in these regions.