Increasing government initiatives to promote electric vehicles in India, Sri Lanka, Bangladesh, Japan, and the Philippines are anticipated to boost the Asia Pacific e3W market to grow at a CAGR of 20.8% till 2027.
According to the recent research report - Asia Pacific Electric 3-Wheeler Marketby end-use, range, battery type, battery capacity, motor power, payload capacity - forecast to 2027 - published by MarketsandMarkets, the Asia Pacific e3W market is estimated to be 272.7 thousand units in 2022 and is projected to grow to 702.1 thousand units by 2027.
Government initiatives to drive the adoption of emission-free vehicles and associated infrastructure, the rising demand for fast-charging electric vehicles, and the increasing deployment of electric vehicles by shared mobility operators are the key factors driving the growth of the Asia Pacific electric vehicle charging station market.
The growing deployment of charging stations by retail MNCs provides significant growth opportunities for players operating in this market. Hence, the e3W market will also grow.
According to the report, the passenger carrier is estimated to hold the largest market share by end-use during the forecast period. Passenger carriers are e3Ws primarily used to transport passengers and have up to 4-seating capacity, including the driver. Some of the passenger carrier models present in the market include Mahindra Treo, Atul Elite Cargo, Comfort Plus and Standard Deluxe.
Many OEMs have been developing e3W passenger carriers over the years and entering strategic partnerships to launch advanced models in the market. The e3W-based services are provided by Ola Auto, Uber Auto, DiDi Chuxing, and Jugnoo. In August 2021, Piaggio Group and Three Wheels United announced a partnership to accelerate the adoption of e3Ws in India. Under this partnership, Three Wheels United will immediately deploy 500 Piaggio Ape' E-City and Ape' E-Xtra vehicles across India. Currently, electric 3-wheelers have a minimal use case compared to traditional ICE 3-wheelers, but various initiatives taken by the mobility solution providers are driving the passenger carrier segment of the e3W market. The e3W passenger carrier sales are highest in countries where there is a high demand for low-emission and low-maintenance vehicles.
The report said that up to 50 miles segment is estimated to be the largest segment by range from 2018 to 2027. Most electric 3-wheeler manufacturers provide electric 3-wheelers with a range of up to 50 miles. Electric 3-wheelers are considered an alternative to daily city commuting within the range of 10¬–12 km. Hence, many electric 3-wheelers have a range of up to 50 miles, making them more popular in the market. Low-performance and affordable e3W usually have a range of up to 50 miles. Many OEMs are offering electric 3-wheelers with low-cost batteries with a restricted range. Mostly, electric 3-wheelers with lead-acid batteries lie in this range. Lower energy density, poor performance at low temperatures, and short lifecycle of the battery put these electric 3-wheelers in the lower performing range category. Elite+ Li-Ion Battery, Electric Tricycle (XD), and Erick are some of the models present in the market, which offer a range of up to 50 miles on a single full charge.
According to MarketsandMarkets, India is estimated to show the highest CAGR growth in the Asia Pacific e3W market. Government policies have encouraged private logistics companies to adopt e3Ws. The motivation for adoption is mostly to reduce carbon footprint. The shift to e3Ws is also in line with the Government of India's commitment to reducing carbon footprint, which encourages fuel-based 3-wheelers to be replaced with electrically powered vehicles. In February 2022, electric vehicle manufacturer Omega Seiki announced a partnership with logistics provider Zyngo to offer electric cargo 3-wheelers Rage+ for the last mile delivery. 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%. The growth drivers for logistics, supply chain, and warehousing include the demand from third-party logistics operators and e-commerce companies. This is fueling the demand for e3Ws in intracity transportation. India's policies strive to create an ecosystem to accelerate the uptake of electric mobility in the country. The government has realised the importance of working jointly to achieve the broader national agenda to reduce vehicular pollution and oil import bill. This will provide a boost to the demand for electric 3-wheelers, the report noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Omega Seiki Mobility.