India’s electric three-wheeler manufacturing soars 123% in H1 2023

India has seen a 123% increase in the manufacturing of electric three-wheelers by Original Equipment Manufacturers (OEM) in H1,says data.

The statistics released by the Society Of Automobile Manufacturers (SIAM) states that between January and June of 2023, 16,552 electric three-wheelers were manufactured, compared to 7,522 electric three-wheelers between January and June of 2022.

This increase in manufacturing can be attributed to the spike in demand for electric three wheelers and the launch of new products by the OEMs with advanced features. With a 14.6 per cent market share, Mahindra’s Last Mile Mobility (LMM), which holds 14.6% of market share had sold 36,816 electric three-wheelers in FY23 as compared to 17,522 in FY22.

Earlier in June, LMM also recorded a milestone of one lakh EV sales.

Another OEM, Bajaj Auto is also seeing a shoot up in demand in its recently introduced electric three-wheelers in selected markets.

As per a BNP Paribas report released in June, electric three-wheeler sales volume have grew by 78% yoy and 7% month-on-month. The electric vehicle penetration in three-wheelers was 55% with the state of Tamil Nadu and West Bengal witnessing the fastest electric three-wheeler month-on-month volume growth.

From the present 8%, the penetration of electric three-wheelers will increase to 16% by FY25 and rise up to 40% by FY30.

“A favourable regulatory environment with central and State government subsidies to lower capital costs, as well as reduction or waiver of registration fees, road taxes, and permit requirements, continues to be supportive of electric auto adoption. With the inherently lower running costs, this results in a much lower (40–45 per cent) total cost of ownership than conventional diesel or CNG three-wheelers, making the conversion to electric autos an attractive proposition,”

Kinjal Shah, Vice President & Co. Group Head, Corporate Ratings, ICRA Limited.

Furthering the sales of electric three-wheelers, companies are also offering easy financing options. Greaves Electric Mobility Private Ltd (GEMPL) recently inked a pact with Bike Bazaar Finance to finance electric three-wheelers.

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