Electric vs. Conventional Fuel Three Wheeler Sales in India – 2024

Key Highlights:

• Mahindra sold 56,251 Electric three-wheelers, leading the EV market, and 8,416 conventional fuel three-wheelers.
• Bajaj Auto sold 396,635 conventional three-wheelers and 41,879 Electric three-wheelers.
• Piaggio recorded 21,763 Electric three-wheelers sales and 71,812 conventional sales, maintaining a strong EV-to-conventional ratio.
• Emerging players like Omega Seiki, TI Clean Mobility, Euler Motors, and Altigreen are steadily growing in the EV segment.
• The new PM E-Drive scheme offers subsidies of up to ₹50,000 for L5 category cargo EVs to boost sales in the coming years.

The year 2024 has ended, and the electric three-wheeler industry in India, the second largest after electric two-wheelers, has showcased remarkable growth. With retail sales reaching 691,011 units, the segment recorded an impressive 18% year-on-year growth compared to 583,597 units in 2023. 

Electric three-wheelers also captured a significant 56% share of the total 1,220,925 three-wheelers sold in India during the year. This sector continues to lead the transition from internal combustion engines (ICE) to electric mobility, maintaining its position as the most rapidly evolving segment for the past three years.

Key Highlights from India’s Three-Wheeler Market

1.    Mahindra Last Mile Mobility:

• Sold the highest number of EV three-wheelers in India, with 56,251 units.
• Conventional fuel three-wheeler sales stood at 8,416 units.

2.    Bajaj Auto:

• Leader in conventional three-wheeler sales with a 396,635 units.
• EV sales reached 41,879 units, securing the second position in EV sales in India.

3.    Piaggio:

• Recorded 21,763 EV sales and 71,812 conventional three-wheeler sales.
• Ranked second in the EV-to-conventional ratio, showcasing a balanced approach.

4.    Omega Seiki Mobility:

• Sold 6,900 electric three-wheelers, becoming the fourth-largest EV seller in India.

5.    TI Clean Mobility:

• Registered 6,034 EV sales, strengthening its position in the electric segment.

6.    Emerging EV Players:

• Euler Motors: 3,519 EVs sold.
• Dilli Electric: 1,449 EVs sold.
• Altigreen: 1,084 EVs sold.

Conventional vs. Electric Trends in India

Conventional Dominance: Bajaj Auto continues to lead the traditional three-wheeler market, with a staggering 396,635 units sold in India.

Electric Surge: Mahindra’s leads in EV sales and Omega Seiki’s emergence signal a growth trajectory for electric three-wheelers in India.

Growth Potential: Players like TVS Motors (558 EVs vs. 22,741 conventional vehicles) and Atul Auto (1,955 EVs vs. 20,165 conventional vehicles) reflect significant space for EV adoption in India.

Quick Take on India’s Three-Wheeler Market

India's shift toward EVs is evident, with major OEMs like Mahindra, Bajaj Auto, and Piaggio driving sales in both segments. While conventional fuel vehicles still dominate in numbers, the rise of electric three-wheelers indicates a promising future for sustainable mobility in the country. 

The steady growth in electric three-wheeler (e3W) sales in India can be attributed to several factors, including a lower cost of ownership compared to internal combustion engine (ICE), CNG, and LPG options, improved financing options, and government-backed incentives like the FAME-II subsidy, the EMPS, and the recently introduced PM E-Drive scheme. 

Additionally, the segment has seen an increase in product variety and growing demand from fleet operators and last-mile logistics businesses.

During the FAME II subsidy era, demand for electric three-wheelers surged with consistent double-digit growth. However, sales growth slowed under the four-month EMPS scheme, which ended on September 30, 2024, as the subsidies were reduced. Monthly growth during this period dropped to single digits.

The newly launched PM E-Drive scheme aims to support the purchase of 316,000 electric three-wheelers over two years. The scheme offers subsidies of ₹25,000 per unit in the first year and ₹12,500 in the second year for electric three-wheelers, including e-rickshaws. For L5 category cargo e-three-wheelers, the incentives are higher at ₹50,000 per unit in the first year and ₹25,000 in the second.

Also Read: Electric Three-wheeler Sales Report November 2024: YC Electric Emerges as Top Choice

CMV360 Says

The rise of electric three-wheelers in India is exciting, especially with brands like Mahindra and Omega Seiki leading the charge. However, conventional vehicles, particularly from Bajaj, still dominate the market. The slowdown due to subsidy cuts is concerning, but the PM E-Drive scheme could revive growth. It's clear that the transition to electric is happening, but it may take more time for EVs to overtake conventional vehicles fully.