In 2023, India, China, and the Association of Southeast Asian Nations (ASEAN) countries were the leading markets for two- and three-wheelers (2/3Ws), with sales reaching 19 million, 17 million, and 14 million units, respectively. Among the ASEAN countries, Indonesia, Vietnam, the Philippines, and Thailand stood out, with 2/3W sales significantly outnumbering light-duty vehicle (LDV) sales. In India, there are 157 two- and three-wheelers per 1,000 people, compared to just 35 passenger cars. Even though Latin America and Africa have smaller 2/3W markets, these vehicles are vital for daily passenger and commercial transportation in these regions. Electrifying 2/3Ws holds great promise for decarbonizing mobility and enhancing urban air quality.
Globally, electric 2/3W sales represented only 13% of total 2/3W sales in 2023. Despite this, 2/3Ws are the most electrified road transport segment, with 8% of the global stock being electric. China led in electric 2/3W sales, with over 30% of sales being electric in 2023, though this was a decrease from about 50% in 2022. India followed with 8%, and ASEAN countries had 3%.
The global electric two-wheeler market experienced an 18% decline in 2023, continuing the downward trend from 2022, primarily due to supply chain challenges in China related to pandemic restrictions. China, which dominates global electric 2W sales, saw a 25% drop. However, India and some ASEAN countries showed steady growth. China still accounted for 78% of global sales, selling nearly 6 million electric 2Ws in 2023, compared to 880,000 in India and 380,000 in ASEAN countries. India’s electric 2W market grew by 40% in 2023, driven by strong policy support, including the FAME II purchase incentive policy and its successor, the Electric Mobility Promotion Scheme (EMPS).
In Vietnam, electric 2W sales reached 250,000 units in 2023, with a 9% share of 2W sales. Vietnam’s market is led by local manufacturers like VinFast, Pega, and Dibao, which have production capacities exceeding domestic demand, allowing for exports to other ASEAN countries. Indonesia aims to boost domestic electric motorbike production with a $455 million subsidy to support 800,000 new electric motorcycle sales and convert 200,000 conventional motorcycles.
China, India, and ASEAN countries collectively lead the world in electric 2/3W sales, with other regions contributing less than 5% to global sales. Outside Asia, Türkiye is the largest market, followed by France, the Netherlands, Italy, and Spain.
The global three-wheeler (3W) market grew by 13% in 2023, reaching 4.5 million sales, with 21% being electric, up from 18% in 2022. Nearly 1 million electric 3Ws were sold in 2023, reflecting 30% growth from 2022. China and India dominate this market, accounting for more than 95% of electric and 80% of conventional 3W sales. In 2023, India surpassed China as the largest market for electric 3Ws, with over 580,000 sales, a 65% increase from 2022, driven by government incentives and lower ownership costs. In China, electric 3W sales fell by 8% to 320,000 units.
In India, despite higher upfront costs, electric 3Ws are significantly cheaper to own over time compared to their gasoline equivalents. Policies like the 2024 EMPS subsidy scheme are expected to boost the adoption of advanced battery chemistries, such as Li-ion batteries.
In 2023, the global market for electric light commercial vehicles (LCVs) grew by over 50%, with electric LCVs making up nearly 5% of total LCV sales. China and Europe saw significant increases in electric LCV sales, with China selling over 240,000 units and Europe almost 150,000. The market for electric LCVs is maturing, with new models and partnerships emerging. For example, Kia announced a modular van design in partnership with Uber. In Korea, the Hyundai Porter and Kia Bongo are popular electric LCVs, well-suited to the local market, and favorably priced compared to their ICE counterparts.
