India Electric Three-Wheeler Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The India electric three-wheeler market was valued at USD 1.16 Billion in 2024. The market is set to grow at a notable CAGR of 13.40% during the forecast period of 2025-2034 to reach a value of USD 4.08 Billion by 2034. Improved battery tech and urban pollution concerns accelerate adoption across cities and small towns. The rising fuel costs, government subsidies, and last-mile delivery demand are also favouring market growth.

Key Market Trends and Insights:

• The North India electric three-wheeler market dominated the market in 2024 and is projected to grow at a CAGR of 14.7% over the forecast period.
• By battery range, the above 100KM segment is projected to witness a CAGR of 14.1% over the forecast period.
• By vehicle type, goods carrier is expected to register 14.7% CAGR over the forecast period with rising urbanization, government incentives, and cost efficiency.

Market Size & Forecast:

• Market Size in 2024: USD 1.16 Billion
• Projected Market Size in 2034: USD 4.08 Billion
• CAGR from 2025-2034: 13.40%
• Fastest-Growing Regional Market: North India

Central and state governments in India offer substantial incentives for electric vehicles under various schemes, adding to the market growth. These include subsidies on vehicle cost, GST reduction, and road tax exemptions. Many states provide direct benefits to electric three-wheeler buyers. Combined with lower running costs, these incentives make e-rickshaws and e-autos economically viable, especially for small business owners and last-mile transporters.

The electric three-wheelers market in India is driven by escalating petrol and diesel prices. In April 2025, the Indian government hiked excise duty on petrol as well as diesel by INR 2 per litre each. This is driving auto-rickshaw drivers and fleet operators to seek alternatives to reduce operating expenses. Electric three-wheelers offer lower per-kilometre costs, making them attractive for daily use. This cost efficiency is especially crucial in tier 2 and tier 3 cities, where drivers operate on thin margins.

Air pollution in major Indian cities is among the highest globally, prompting urgent action from policymakers and citizens. Vehicular emissions, especially from older diesel-powered three-wheelers, significantly contribute to urban air pollution. Commercial vehicles are responsible for approximately 65-70% of vehicular pollution. Transitioning to electric three-wheelers is seen as a key step in reducing harmful emissions, making environmental sustainability a critical India electric three-wheelers market driver.

Key Trends and Recent Developments

June 2025

TVS Motor Company partnered with Kadam Mobility to deploy 500 electric three-wheelers across India during the 2025-26 fiscal year. This helped to enhance sustainable urban mobility, focusing on metro and Tier 1 cities, integrating TVS King EV MAX models into Kadam's existing EV ecosystem, including charging infrastructure and driver training programs.

May 2025

Japanese EV manufacturer Terra Motors expanded its product lineup in India by launching the KYORO+ electric three-wheeler, designed specifically for the passenger segment. This enhanced Terra Motors' presence in the L5 electric three-wheeler market, complementing the India electric three-wheelers industry value.

January 2025

Ola Electric, India's largest electric two-wheeler manufacturer, revealed plans to launch its first electric three-wheeler in the second half of 2025. The vehicles share the same platform as Ola's S1 series scooters, utilizing similar electronics, battery architecture, and powertrain components.

August 2024

RevFin and Bajaj Auto formed a strategic partnership to accelerate the adoption of high-speed electric three-wheelers (e3Ws). With this move, RevFin brings accessible financing through psychometric underwriting and EV expertise, while Bajaj contributes strong product range and market reach.

Rapid Urbanization and Congestion

The electric three-wheelers demand in India is growing with expanding rapidly urban population and the challenges of traffic congestion and pollution. As per the United Nations, India's urbanisation is estimated to rise to 50% by 2050. Electric three-wheelers offer a viable solution for short-distance commutes in crowded urban environments due to their small size and maneuverability. This aligns with the growing trend toward micro-mobility and multimodal transport, helping electric three-wheelers integrate more deeply into urban transit networks.

Growing Last-Mile Delivery Demand

The surge in e-commerce and hyperlocal delivery services in India has increased the demand for efficient last-mile transport solutions. Electric three-wheelers are ideally suited for this segment. Companies are increasingly adopting electric three-wheelers in their delivery fleets to meet sustainability goals and reduce logistics costs. In January 2025, Borzo launched its electric three-wheeler fleet in Mumbai, marking the start of its sustainable urban logistics rollout. This trend is fuelling India electric three-wheelers market share by encouraging manufacturers to tailor models for delivery use.

Financing Innovations for Drivers

Access to affordable financing is crucial for small-scale buyers and individual drivers. Fintech startups and NBFCs are stepping in with tailored financing solutions, including lease-to-own models, pay-as-you-drive, and battery subscription plans. In March 2023, MLR Auto partnered with RevFin, a fintech and NBFC platform, to launch app-based, psychometric and biometric-driven financing for electric three-wheelers in North and East India. As more financiers enter this space, drivers and fleet operators can access electric vehicles with lower upfront investments, breaking a major adoption barrier and expanding the potential customer base.

Entry of New Players and Startups

The India electric three-wheeler market is seeing strong participation from startups and legacy automakers. Startups are innovating with better battery tech, connected features, and modular vehicle design, while traditional OEMs are leveraging their dealership networks and manufacturing capabilities. In February 2024, EV-CO launched electric three-wheelers in Delhi, targeting passenger and cargo segments with smart features and modular design. This has intensified competition, improved product variety, and brought down prices through economies of scale

Expansion of Charging Infrastructure

India is witnessing a steady expansion in electric vehicle charging infrastructure, especially in urban centres and transit hubs. Government and private players are setting up fast-charging stations and battery swapping points tailored for three-wheelers. In June 2024, ElectroRide and Battery Smart launched a battery‐swapping initiative to serve electric two‐ and three‐wheelers in India. These developments are addressing key concerns about charging accessibility and downtime.

India Electric Three-Wheeler Industry Segmentation

The report titled “India Electric Three-Wheeler Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Passenger Carrier
• Goods Carrier

Key Insight: The passenger carrier segment dominates the market, driven by rising urbanization, government incentives, and cost efficiency. These vehicles, commonly known as e-rickshaws, serve as affordable last-mile transport options in cities and small towns. In September 2024, Godawari introduced the Eblu Cety e-rickshaw with a durable DCPD body, designed for Indian road conditions. Government schemes and state-level subsidies have further boosted adoption, making passenger carriers the largest segment for the India electric three-wheeler market growth.

Market Breakup by Power Type

• Upto 1000W
• 1001W to 1500W
• Above 1500W

Key Insight: The upto 1000W segment is gaining traction, especially in rural and semi-urban areas. Typically powered by lead-acid batteries, these vehicles serve as last-mile solutions in Tier 2 and Tier 3 towns. Brands like Yatri, Big Bull, and Saera Electric lead this space. For example, in Uttar Pradesh and Bihar, thousands of 850W-1000W e-rickshaws operate daily, offering low fares and easy maintenance. Their lower speed and minimal regulatory requirements make them popular among small entrepreneurs and daily wage drivers with limited capital.

Market Breakup by Battery Range

• Up to 100km
• Above 100km

Key Insight: The up to 100 km range segment of the India electric three-wheeler industry is expanding, especially among passenger carriers in urban and semi-urban areas. Most e-rickshaws use lead-acid or entry-level lithium-ion batteries that provide sufficient range for daily city commutes, typically covering 50 to 90 km per charge. In August 2024, Lohia launched the Narain iCE, an eco-friendly passenger rickshaw with sleek design and an 80-90 km range. The affordability and practicality of this segment make it the most widespread in the market.

Market Breakup by Component

• Battery Pack and High Voltage Component
• Motor
• Brake, Wheel and Suspension
• Body and Chassis
• Low Voltage Electric Component
• Others

Key Insight: The motor segment is contributing to the electric three-wheeler market share in India as the core driver of performance and efficiency. Brushless DC (BLDC) motors are widely preferred for their high efficiency, low maintenance, and smooth operation. The motor’s power rating, typically between 1.5 kW to 5 kW, directly impacts vehicle range and load capacity. Innovations such as regenerative braking integrated with motors further improve energy efficiency, making this segment crucial for overall vehicle performance and adoption.

Market Breakup by Region

• North India
• East India
• South India
• West India

Key Insight: North India is witnessing higher adoption of electric three-wheelers due to high urbanization and strong government support for EV adoption. Cities like Delhi, Lucknow, and Chandigarh have witnessed rapid e-rickshaw penetration, driven by subsidies and local policies favouring clean mobility. As per EVreporter, the EV penetration in e-3W goods in Delhi reached 74.8% in 2024. The region’s extensive fleet of e-rickshaws caters to both passenger transport and last-mile logistics, making it a key growth driver for the India electric three-wheeler industry.

India Electric Three-Wheeler Market Share

Goods Carrier Electric Three-Wheeler Lead the Market Via Delivery Fleets

The goods carrier segment is driving the India electric three-wheeler market development. These vehicles are increasingly used for e-commerce deliveries, grocery transport, and urban logistics, particularly in congested city areas where their compact size and low emissions are advantageous. Companies have introduced purpose-built electric cargo vehicles. For example, Flipkart and Amazon have begun integrating such EVs into their delivery fleets to meet sustainability goals.

1001W to 1500W Electric Three-Wheelers Lead the Market Via Innovations

The 1001W to 1500W segment represents a balanced mix of affordability and enhanced performance, growing steadily in urban and peri-urban zones. These e-rickshaws offer better torque, moderate speed and improved load capacity, making them suitable for congested city routes and heavier passenger use. Vehicles in this category often use lithium-ion batteries, improving efficiency and reducing charging time.

The above 1500W segment is rapidly expanding, mainly in commercial fleet and cargo applications. These high-powered electric three-wheelers offer longer ranges, faster speeds, and greater payload capacity, often exceeding 500 kg. In July 2024, Mahindra e-Alfa Plus was launched to offer a reliable 4.5 kW motor with a range exceeding 100 km, targeting the passenger transport sector with enhanced safety and comfort. Used by logistics firms and urban delivery services, these models meet the demands of modern fleet operations.

Above 100km Electric Three-Wheelers Lead the Market Via Investments in Battery Technology

The above 100 km range segment is expanding to cater mainly to fleet operators and cargo carriers requiring longer daily routes without frequent recharging. Models like the TVS King EV Max, offering ranges up to 179 km, and Euler HiLoad serve logistics and commercial transport in metros, such as Delhi, Bengaluru, and Mumbai. Higher battery capacity and advanced technology raise vehicle costs, limiting penetration in small towns. However, increasing investments in battery tech and government incentives are gradually boosting adoption in this long-range category.

Brake, Wheel and Suspension Lead the Market Via Passenger Safety

The India electric three-wheelers market share is growing through brake, wheel, and suspension systems for their better stopping power. Leading players equip their models with hydraulic brakes and shock absorbers to handle city traffic and uneven road conditions. Wheels typically range from 10 to 12 inches in diameter with tubeless tires improving durability. Suspension systems usually employ telescopic front forks and leaf spring or hydraulic rear suspensions, enhancing ride comfort on bumpy urban roads, critical for passenger safety and driver ergonomics.

The body and chassis segment shapes the durability, weight, and design appeal of electric three-wheelers. Manufacturers prioritize lightweight steel or aluminum chassis to maximize battery efficiency without compromising strength. In June 2025, Montra Electric launched the Super Cargo three-wheeler in Delhi by utilizing a lightweight yet robust boron steel chassis for optimal efficiency, strength, and battery performance. The chassis design further favours stability and payload capacity, influencing commercial viability.

India Electric Three-Wheeler Market Regional Analysis

East India Leads the Electric Three-Wheeler Demand with Government Support

East India electric three-wheelers industry revenue is growing with the region’s focus on pollution control and improving public transport infrastructure supports gradual adoption. Local startups and manufacturers are beginning to tap this market with affordable, lead-acid battery models suited to shorter commutes. In November 2023, West Bengal welcomed foreign investments in EV sector to boost manufacturing, innovation, infrastructure, and accelerate green mobility adoption statewide Government initiatives are encouraging fleet electrification.

South India shows promising growth in the electric three-wheeler sector. Tamil Nadu, Karnataka, and Telangana have well-established EV policies, promoting electric mobility through subsidies and EV-friendly infrastructure. Cities like Bengaluru and Chennai are witnessing increased use of lithium-ion battery-powered three-wheelers by commercial operators and ride-sharing fleets. The region’s tech-savvy urban population and supportive policies make it a fertile ground for market growth.

Competitive Landscape

Key players in the market are adopting a mix of technological, financial, and strategic initiatives to strengthen their market position and accelerate adoption. Product innovation is a core strategy, with companies like TVS, Bajaj, and Omega Seiki launching models with higher battery efficiency, longer range. Battery technology upgrades, shifting from lead-acid to lithium-ion and LFP batteries, are enhancing performance and reducing maintenance costs. Localization of manufacturing is another major strategy, aimed at reducing costs and qualifying for government subsidies under the FAME-II scheme.

Additionally, after-sales service networks are being expanded to boost customer confidence, while digital platforms are being leveraged for vehicle diagnostics, customer engagement, and real-time tracking. Many India electric three-wheeler market players are setting up local assembly and R&D facilities to stay competitive. Partnerships and collaborations with battery suppliers, fintech companies, and fleet operators are helping expand distribution and financing access. These integrated strategies are enabling players to cater to both passenger and cargo segments, particularly in urban and semi-urban regions.

Mahindra Group

Founded in 1945 and headquartered in Mumbai, Mahindra Group is a diversified conglomerate known for pioneering sustainable mobility. Its electric three-wheelers, under the Mahindra Electric brand, have set benchmarks in performance and safety and has contributed significantly to India's EV ecosystem via innovations.

Piaggio Vehicles Pvt. Ltd.

Established in 1999 with its headquarters in Pune, Piaggio Vehicles is a prominent name in the India electric three-wheeler industry. A subsidiary of Italy’s Piaggio Group, it has introduced electric models. The company’s innovations include swappable battery technology and integration of smart telematics in its EVs.

Terra Motors India

Terra Motors entered the Indian market in 2014 and operates from its base in New Delhi. Originating from Japan, the brand is known for sleek, affordable e-rickshaws tailored to Indian roads. Its focus on localized assembly and lithium battery integration has driven innovation in urban and semi-urban mobility.

Kinetic Green

Launched in 2015 and based in Pune, Kinetic Green is a leading EV manufacturer under the Kinetic Group. Known for the Safar series, the company emphasizes affordability and environmental impact. Its partnerships, including one with Lamborghini for golf carts, reflect its innovative approach to diverse electric mobility solutions.

Other key players in the report include Zuperia Auto Private Limited, Omega Seiki Mobility Private Limited, ATUL Auto Limited, Yatri Electric Vehicle, Saera Auto Private Limited, and Citylife Electric Vehicles among others.

Key Features of the India Electric Three-Wheeler Market Report

• In-depth quantitative analysis of market size, share, and forecast till 2025.
• Covers regional performance across North, East, South, and West India.
• Detailed assessment of battery types, motor tech, and key components.
• Profiles of major market players with recent launches and innovations.
• Analysis of market drivers, challenges, opportunities, and government policies.
• Insights into consumer trends and fleet adoption in urban and rural areas.