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The global electric three-wheeler market reached a value of US$ 596.2 million in 2021. Looking forward, the market is projected to reach a value of US$ 1,059.10 million by 2027, exhibiting a CAGR of 9.60% from 2022 to 2027. Keeping in mind the uncertainties of COVID-19, the analyst is continuously tracking and evaluating the direct as well as the indirect influence of the pandemic.
An electric three-wheeler, also known as an e-rickshaw, operates on high torque electric motors and longer durability batteries. It offers last-mile connectivity, easy access to narrow roads, and a noise-free travel experience. It helps improve urban air quality by reducing total greenhouse gas (GHG) and other emissions. Besides this, as it also aids in lowering additional costs associated with fuel consumption, the electric three-wheeler is gaining immense traction as a convenient and eco-friendly mode of public transportation across the globe.
Surging levels of air pollution and inflating prices of transportation fuels have resulted in the increasing adoption of green vehicles. This, in confluence with the burgeoning automobile industry, represents one of the key factors bolstering the growth of the market. Besides this, governing authorities of numerous countries are offering subsidies and tax abatements, exempting drivers of electric three-wheelers from toll road or parking fees, and deploying charging stations for electric vehicles (EVs).
Moreover, the batteries of these vehicles can be reused and recycled. Apart from this, the introduction of battery-as-a-service (BaaS) can reduce up-front acquisition costs of electric three-wheelers as it enables customers to lease batteries as a separate component. In addition, BaaS is less time-consuming and requires minimum infrastructure compared to charging the battery at a station. This, coupled with the growing popularity of shared mobility, which may help reduce traffic congestion and transportation costs, is fueling the market growth. Furthermore, rising environmental awareness among individuals, increasing substitution of petrol-powered three-wheelers with electric three-wheelers, and reducing battery prices that aid in minimizing total costs of ownership (TCO) are some of the other factors projected to drive the market.
Key companies in the Global Electric Three-Wheeler Market include ATUL Auto Limited, Bodo Vehicle Group Co. Ltd., E, Tuk Factory, Goenka Electric Motor Vehicles Private Limited, Jiangsu Jinpeng Group Co. Ltd., Kinetic Green Energy & Power Solutions Ltd., Lohia Auto Industries and Omega Seiki Mobility.