Three Wheeler Market Size, Share, and Analysis by 2027

The three wheeler market was valued at US$ 9.14 Bn in 2018 and is expected to grow at a CAGR of 4.9% from 2019 to 2027 to reach US$ 13.73 Bn by 2027.

Three wheeler passenger carriers are three-wheelers used for transportation of passengers. A minimum of three and a maximum of five-six passengers can travel by three wheelers passenger carriers. In rural areas, more than six passengers travel by three-wheeler passenger carriers as per requirement. E-rickshaw is one of the main types of three wheelers. E-rickshaws run on battery and are eco-friendly vehicles and produce vehicular emission and less noise in comparison with conventional three wheelers. E-rickshaws can carry five-six passengers for transportation. Increasing demand for electric three wheelers, and increasing population, and increasing need fora vehicle that helps in traffic congestion in the region have been bolstering the growth of the global three wheelers market. In 2018, the APAC region holds a prominent position in the three wheeler market during the forecast period. Countries such as India is anticipated to dominate the domestic and export business segment during the forecast period. Further, many established players from India are focusing on the manufacture of three-wheelers complied with BS (Bharat Stage) VI norms, which will be implemented by 2020 to keep particulate matter, nitrogen oxides, and Sulphur emission in check. Significant growth is observed in China, followed by other Asian countries such as Thailand and Malaysia, due to the increasing need for transportation medium for rural and semi-urban areas of the nation and the growing population.

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Three Wheeler Market: Strategic Insights

Market Insights

The increasing demand for eco-friendly three wheelers is propelling the growth of the market

The automotive industry across the world is constantly experiencing the rise in the number of several new three-wheeler manufacturers. The three-wheeler manufacturers are continuously eyeballing on the development of the electric three-wheeler segment as the section is attracting the interest of the customers globally. The global automotive industry is experiencing a significant shift from traditional three-wheelers to electric three-wheelers.

Governments in various countries are taking the initiative for the adoption of electric three-wheelers. For instance, in March 2018, the Ministry of Heavy Industries & Public Enterprises, India, launched Phase-II of the FAME India Scheme, which was initiated on 1st April 2019 for next three years, with total budgetary support of US$ 1.39 billion. This phase is launched to mainly support the electrification of public & shared transportation and aims to support through subsidies 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers. This phase of the FAME Scheme is looking forward to setting up adequate public charging infrastructure to develop confidence among EV users. With this, the ministry of heavy industries & public enterprises is looking ahead for involvement and active participation of various stakeholders, including industries and public sector enterprises (PSEs) and government agencies. The key players in the market are aiming at developing electric vehicles. For instance, the Piaggio & C. SpA, and Italian motor vehicle manufacturer launched Piaggio Ape E-City under its range of Piaggio Ape Electrik Electric 3-Wheeler. The E-auto comes with a swappable Lithium-ion battery and can cover the range of around 70-80 km when charged once. Furthermore, in August 2019, Euler Motors announced that it would launch electric three-wheeler light commercial cargo vehicles in India in early 2020.

Geographically, India and China houses numerous three wheelers manufacturers, as well as the acceptance of electric three-wheelers is soaring at a rapid rate year on year. Apart from India and China, countries across South America, such as Brazil, Argentina, and the Middle East & African countries such as South Africa, Nigeria, Egypt, are also developing rapidly in terms of electric three-wheeler adoption in the automotive industry. Asia-Pacific has dominated as well as is witnessing huge growth in the automotive industry. Nevertheless, the automotive players operating in the region needs an improved number of partnerships with components providers, to mount exponentially in terms of electric three-wheeler deployments. The strategic partnerships, collaboration, contracts, acquisition with other market players are the primary factor for the industry players to drive their markets, which is estimated to drive the three-wheeler market worldwide in the coming years.  

Type Insights

In type segment, passenger carrier captured the largest share in the global three wheeler market. The passenger carrier is the cheapest transport vehicles that can be afforded by various private transport operators and by individuals whose earning is from transport jobs. The growth of the segment is driven by the increasing demand for low-cost passenger carriers such as lack of proper roads, three-wheelers are mainly due to inadequate transportation facilities, and urban areas with heavy traffic congestions.

Fuel Type Insights

The three wheeler market, by fuel type, is segmented into diesel, petrol, CNG, LPG, and electric. The petrol segment captured dominating share in the global three wheeler market.

Market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The market players present in the three wheeler market are mainly focusing on product and service enhancements by integrating advanced features and technologies. By signing partnerships, contracts, joint ventures, and inaugurating new offices across the world, companies are trying to increase their market share and brand presence. Most of the market initiatives were observed in the Asia Pacific region, which have a high potential for future market growth. Few of them are listed below;

2019:In December 2019, Greaves Cotton announced a partnership with TVS Motor Company. Under this partnership, Greaves Cotton would act as an authorized service center for TVS Motor’s three-wheelers in India.
2018:ATUL Auto Limited partnered with JBM Industries, an auto parts company based in India. The company has partnered to expand its three wheeler electric autos business.

The regional trends and factors influencing the Three Wheeler Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Three Wheeler Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Three Wheeler Market Report Scope

Three Wheeler Market Players Density: Understanding Its Impact on Business Dynamics

The Three Wheeler Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Three Wheeler Market – By Type 

• Passenger Carrier
• Goods Carrier

Three Wheeler Market – By Fuel Type

• Diesel
• Petrol
• CNG
• LPG
• Electric

Global Three Wheeler Market by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • South Korea
  • Japan
  • Australia
  • Rest of Asia Pacific
• Rest of the World
  • Africa
  • Latin America  

Companies Profiles

• ATUL Auto Limited
• Bajaj Auto Ltd.   
• J.S. AUTO (P) LTD.
• Mahindra & Mahindra Ltd.
• Piaggio & C. SpA
• Scooters India Limited
• Speego Vehicles Co Pvt Limited
• Terra Motors Corporation
• TVS Motor Company
• Xianghe Qiangsheng Electric Tricycle Factory