DUBLIN--(BUSINESS WIRE)--The "Asia Pacific Electric 3-Wheeler Market by End-use (Passenger & Load), Range (Up to 50 Miles & Above 50 Miles), Battery type (Lead Acid & Lithium ion), Battery Capacity (Below 3kWh, 3-6kWh, Above 6kWh), Motor Power, Payload Capacity - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
Asia Pacific electric 3-wheeler market is estimated to be 272.7 thousand units in 2022 and is projected to grow to 702.1 thousand units by 2027, at a CAGR of 20.8% during the forecast period.
Low operating and maintenance cost to drive the electric 3-wheeler market in Asia Pacific
One of the most important factors driving the Asia Pacific electric 3-wheeler market is the increasing prices of petroleum products. Thus, ICE 3-wheelers are generally expensive to operate. Consumers from emerging countries are already affected by the increasing costs of petrol and diesel. Electric 3-wheelers operating on electricity significantly reduce the operating cost of these vehicles as the use of petrol and diesel is eliminated.
Electric 3-wheelers are eco-friendly battery-operated 3-wheelers with better economy and lower operating cum maintenance costs than ICE 3-wheelers. Manufacturers are working towards developing 3-wheelers that have a higher range than the current models. As electric 3-wheelers have a lower number of moving parts than conventional 3-wheelers, maintenance is not a major concern.
The highest maintenance cost is expected to be the cost of changing the battery, which, however, is not frequent. Electric 3-wheelers provide zero tailpipe emissions and noise-free transportation. The 3-wheelers with a carrying capacity of between three to seven people provide mobility solutions for short trips of up to 10-12 km, for first and last-mile connectivity, and as feeder services to the main haul public transport.
The electrification of 3-wheelers is expected to result in lower operation and maintenance costs as compared to Internal Combustion Engine (ICE) vehicles, making them economically viable. This is driving the market for electric 3-wheelers in the Asia Pacific region.
Government incentives and subsidies to boost the market of Electric 3-wheeler
Growing concerns over increased pollution by the automotive industry is the prime reason government bodies are promoting electric 3-wheelers over conventional ones. They have recognized the need for promoting energy-efficient vehicles to reduce the increasing pollution.
To attract and encourage people to buy electric 3-wheelers, government bodies of different countries are introducing lucrative schemes and incentives that include formidable discounts, free electricity (initially), and free public charging stations. Apart from this, governments are working with manufacturers to build charging and manufacturing facilities, exempting them from taxation. These factors are expected to drive the future Asia Pacific electric 3-wheeler market.
For instance, in 2020, Thailand's Board of Investment (BOI) issued tax incentives for the country's electric vehicle (EV) industry. Originally only state agencies took on the mantle to move the industry forward through the development of vehicle and charging station prototypes. However, due to the increasing incentives from governments, the industry has become increasingly attractive to the private sector.
New revenue pockets in Asia Pacific region to drive the market
Asia Pacific is a high-growth market for electric 3-wheelers. Several countries in this region have a high penetration of 3-wheelers and have witnessed a surge in demand for low-emission and fuel-efficient commuting alternatives due to stringent emission norms and increasing crude oil prices.
In April 2022, Bajaj Auto announced its plan to commercially launch its first electric 3-wheeler during the second half of 2022. This showcases that the demand for efficient and affordable electric 3-wheelers is expected to grow significantly in the Indian market. OEMs are entering into strategic partnerships to strengthen their bases in the Asia Pacific electric 3-wheeler market.
For instance, in April 2022, Atul Auto Ltd. announced its plan to develop a prototype version of both cargo and passenger electric 3-wheelers with battery swapping solutions. It will employ the Honda Mobile Power Pack e: Swap, which is a swappable battery pack, and a powertrain system from Valeo. The market in the Asia Pacific region is expected to grow exponentially in the coming years due to the high adoption of electric 3-wheelers in China and the high potential of the Indian market.
- Low Operating and Maintenance Costs
- Government Incentives and Subsidies
- Advancements in Battery Technology Coupled with Reducing Prices
- Established Market for 3-Wheelers in Urban Transportation
- Lack of Charging Infrastructure
- Limited Power Output and Vehicle Range
- Government Support to Promote Electric 3-Wheeler Sales
- Stringent Emission Norms and Environmental Regulations
- New Revenue Pockets in Asia-Pacific
- Limited Battery Capacity
- High Initial Investments
- Lack of Compatibility, Interchangeability, and Standardization
- Atul Auto Ltd.
- Bajaj Auto
- Beevatech Limited
- Bemac Corporation
- Changzhou Yufeng Vehicle Co. Ltd.
- Electric Vehicles (Thailand) Co. Ltd.
- Gayam Motor Works Private Limited
- Green Shuttle Technology Pvt. Ltd.
- Jiangsu East Yonsland Vehicle Manufacturing Co. Ltd.
- Jiangsu Jinpeng Group Co. Ltd.
- Kawaoka Machinery and Electric (Nantong) Co. Ltd.
- Kinetic Engineering Limited
- Ksl Cleantech Limited
- Lohia Auto Industries
- Mahindra & Mahindra Ltd.
- Omega Seiki Private Limited
- Piaggio Group
- Prozza Hirose Manufacturing Inc.
- Shado Group International Pte. Ltd.
- Skyride Automotive
- Sl Mobility
- Speego Vehicles Co. Pvt. Limited
- Terra Motors Corporation
- Xianghe Qiangsheng Electric Tricycle Factory
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