Electric Three-Wheeler Industry Outlook For APAC

(MENAFN- P&S Intelligence) The government of India approved the phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme in 2019, for a period of three years. The scheme was launched on April 1, 2019 with an outlay of INR 10,000 crore. Around 86% of this fund has been allocated for demand incentives, to generate demand for various types of electric vehicles (EVs). Phase II aspires to create a demand for around 5 lakh electric three-wheelers by 2022.

Apart from the implementation of such favorable government policies, the low ownership cost of battery-powered electric three-wheelers as compared to their gasoline-driven variants will help the APAC electric three-wheeler market progress at a CAGR of 4.1% during 2018–2023. According to P&S Intelligence, the market was valued at $9,774.5 million in 2017, and it will generate $11,935.1 million revenue by 2023. The low operational cost of these automobiles is owing to the presence of fewer moving parts than their diesel and gasoline counterparts.

At present, automakers, such as Lohia Auto Industries, ATUL Auto Ltd., Kinetic Green Energy & Power Solutions Ltd., Xianghe Qiangsheng Electric Tricycle Factory, Jiangsu East Yonsland Vehicle Manufacturing Co. Ltd., Changzhou Yufeng Vehicle Co. Ltd., Terra Motors Corporation, and Jiangsu Kingbon Vehicle Co. Ltd., are involved in the production of passenger and load carriers. In the coming years, passenger carrier electric three-wheelers will be adopted in the larger number due to the presence of a large customer base and extensive demand for low-cost shared mobility in the APAC region.

Even though APAC is the most-urbanized region in the world in terms of the total urban residents, the overall income levels in regional cities are not as high as in European or North American metropolises. Asian cities are still occupied to a large extent by people who fall in the lower- and middle-income groups. Therefore, compared to the total urban dwellers, the private vehicle ownership rate is rather low. This has created a vast demand for cost-effective urban transportation, especially for short distances and everyday purposes.

Both the passenger and load carriers are powered by sealed lead–acid (SLA) or lithium-ion (Li-ion) batteries. In the recent past, manufacturers have preferred SLA batteries over Li-ion batteries due to their lower cost. Whereas, in the upcoming years, Li-ion batteries will be adopted at the higher rate due to their plunging prices owing to the continuous technological advancements in storage devices. Additionally, the higher energy density, greater lifespan, and lower weight of Li-ion batteries will accelerate their usage in the coming years.

Currently, companies operating in the APAC electric three-wheeler market are offering vehicles with 1,500-W motor power. In contemporary times, 1,000–1,500-W-motor-power electric three-wheelers are being purchased in the highest numbers due to their operational cost benefits. However, in the coming years, those with >1,500-W motor power will be adopted at the fastest pace due to the burgeoning demand for high-speed electric three-wheelers and the surging focus of fuel-based three-wheeler manufacturers on the production of electric variants.

Thus, the increasing implementation of government policies promoting EV sales and production and declining operational cost of new-energy vehicles will propel the adoption of electric three-wheelers in APAC in the forthcoming years.

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