Soaring fuel prices and growing Government initiatives to escalate the acceptance of environment-friendly automobiles, including three-wheelers, increasing urbanisation, and rapidly expanding charging infrastructure network will drive the Global Electric Three-wheeler Market to reach $2.3 billion by 2027.
According to a recent report by Research and Markets, these factors are expected to positively influence the growth of the Global Electric Three-wheeler Market, eventually leading it to grow at a CAGR of 6.5% in value terms between 2017 and 2027.
Several countries have realised the necessity to go electric to contain the rising pollution levels generated by automobiles, including three-wheelers. As a result, many countries like China, India, Bangladesh and others have already ramped up their activities to improve the market penetration of electric three-wheelers.
The electric three-wheeler does not have an internal combustion engine like most three-wheelers have; instead, the electric three-wheelers are powered by a rechargeable battery. Growth factors such as travel convenience, the low total cost of ownership, affordable mass commuting, and high efficiency, among others, have also increased the adoption of electric three-wheelers across various regions over the last five years.
The pandemic harmed the sales of electric three-wheelers across regions around the globe. In 2020, electric three-wheeler sales declined compared to the previous year as major electric three-wheeler producing countries worldwide, such as China, India etc., underwent strict lockdown in the second and third quarters of 2020 as a measure to control the spreading coronavirus.
The COVID-19 pandemic adversely affected the electric three-wheelers' production, sales and supply chain network. Nevertheless, the electric three-wheeler market is anticipated to recover due to an increasing number of initiatives by the Governments to increase the adoption of electric three-wheelers.
Lower TCO
The total cost of ownership (TCO) of a traditional three-wheeler is relatively on the higher side compared to a battery-powered three-wheeler, as the electric three-wheeler runs on a stored charge which gives the lower running cost per km. Therefore, the low TCO of electric three-wheelers is one of the significant selling points for these vehicles globally. Although the cost of the electric three-wheeler can be the same, and sometimes even costlier than their diesel/petrol-powered three-wheeler, the TCO is significantly less, the report observed.
For alike distance travelled, the cost associated with charging an electric three-wheeler is comparatively lesser than the cost of burning petrol or diesel; as a result, the TCO electric three-wheeler decreases dramatically for a longer period. However, total savings depends on the particular model of electric three-wheeler an individual buys and which diesel/petrol powered counterpart one is comparing. Nevertheless, in a significant number of cases, the lifetime charging cost of an electric three-wheeler comes out to be far lower than the traditional diesel/petrol-powered three-wheeler.
Easier Maintenance
The cost to maintain an electric three-wheeler is commonly on the much lower side as these vehicles are free from the complexity associated with a petrol/diesel-powered internal combustion engine. Coming to the maintenance of an electric three-wheeler, the owner does not have to be worried about all the fluids and moving parts like one has to with a petrol/diesel-powered internal combustion engine of a traditional three-wheeler.
Moreover, the power control unit of an electric three-wheeler propels the three-wheeler of stored energy coming off from the battery stored onboard and is electrically charged, consequently the electric three-wheeler lacks in terms of the number of components on-board which are in motion, which results in lesser wear and tear and hence low maintenance, the report noted.
Courtesy: Research and Markets. NB: Photo is representational; courtesy: Okinawa.
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