Three-Wheeler Market: Electric Vehicles, Sustainable Transport & Growth Trends

Rising demand for affordable urban mobility, last-mile connectivity, and low operating costs is driving growth in the three-wheeler market. Expansion of e-commerce and logistics boosts usage in goods transport. Government support for electric mobility, improving battery technology, and stricter emission norms accelerate adoption. Increasing urbanization and preference for compact, fuel-efficient vehicles further support sustained market expansion. According to IMARC Group's latest research publication, The global three-wheeler market size was valued at USD 11.58 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 23.57 Billion by 2033, exhibiting a CAGR of 8.17% during 2025-2033.

How AI is Reshaping the Future of Three-Wheeler Market

• AI-powered GPS systems show live traffic, weather, and delivery updates, helping three-wheeler drivers choose the best and fastest routes. This saves time, lowers fuel use, and makes daily driving easier.
• Machine learning looks at data from an electric three-wheeler’s sensors to find battery problems or damaged parts early. This allows issues to be fixed before breakdowns happen, helping the vehicle last longer and reducing repair costs.
• Computer vision helps three-wheelers see pedestrians, vehicles, and traffic lights around them. It can warn drivers about possible crashes and even apply brakes automatically, making driving safer.

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Three-Wheeler Industry Overview:

The three-wheeler industry is growing fast because cities are expanding and more people are using electric vehicles. In India, sales of electric three-wheelers reached 699,073 units in FY 2025, the highest ever, making up 57% of total three-wheeler sales. The biggest companies in this market are Bajaj Auto, TVS Motor, and Mahindra, together holding about 90% of the market. New electric models include TVS Motor’s King EV MAX with a 179 km range, and Bajaj Auto’s GoGo EV series with a 251 km range, starting at ₹3.26 lakh.

Three-Wheeler Market Trends & Drivers:

With the growth of e-commerce and home delivery, the use of three-wheelers is moving closer to city edges and nearby areas. Commercial electric three-wheelers are popular because they are much cheaper to run than petrol ones. Electric models cost about ₹1.28 per km, while petrol ones cost around ₹3.21 per km. Big delivery and logistics companies are quickly switching to electric vehicles. Three-wheelers are also ideal for busy city roads and narrow streets where larger vehicles cannot move easily.

Technology has made three-wheelers more useful. Electric three-wheelers now come with GPS, remote tracking, anti-theft locks, smart batteries, and battery management systems. Some models can travel up to 251 km on one charge. Better batteries have reduced charging time and energy costs. A battery size of 5–8 kWh is considered best because it keeps costs low while providing enough range for daily use.

Government rules and support are also helping this shift. Emission standards like India’s BS-VI and Europe’s Euro 6 are pushing operators to move from petrol vehicles to electric three-wheelers. Many central and state governments offer subsidies, tax benefits, and free registration, making electric three-wheelers more affordable in both cities and rural areas.

Leading Companies Operating in the Global Three-Wheeler Industry:

• Bajaj Auto Limited
• TVS Motor Company Limited
• Mahindra & Mahindra Limited
• Piaggio & C. S.p.A.
• Scooters India Limited
• Atul Auto Limited
• Kinetic Green
• ChongQing Zongshen Tricycle Manufacturing Co., Ltd.

Three-Wheeler Market Report Segmentation:

By Vehicle Type:

• Passenger Carrier
• Load Carrier

The passenger carrier, accounting for approximately 80.9% of volume, has been propelled by the demand for efficient transportation over short and medium distances and requirements for high maneuverability within densely populated urban areas.

By Passenger Vehicle:

• 4-Seater
• 6-Seater

The market has been segmented based on the type of passenger vehicles, viz. 4-seater and 6-seater.

By Fuel Type:

• Petrol/CNG
• Diesel
• Electric

Diesel remains dominant, with 46.8% market share, due to better power efficiency, higher torque, and cheaper long-distance and heavy-duty commercial use, with the rising price of gasoline being another factor.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia-Pacific exhibits clear dominance in the three-wheeler market, holding over 64.4% market share, driven by high population density, established manufacturing ecosystems, and strong government support for sustainable mobility solutions.

Recent News and Developments in Three-Wheeler Market

• In April 2025, Remsons Industries bought a 51% stake in Astro Motors, an electric three-wheeler company based in Pune, for ₹14.22 crore. Astro Motors makes electric three-wheelers for carrying goods and passengers, such as the Astro Navya. This deal supports Remsons’ focus on clean and sustainable transport.
• In March 2025, Hero MotoCorp bought a 32.5% share in Euler Motors for ₹5.25 billion, entering the electric three-wheeler market. This investment matches Hero’s sustainability goals. Euler Motors operates in 30 Indian cities and earned ₹1.72 billion in FY 2024.
• In February 2025, Bajaj Auto launched three new electric three-wheelers—P5009, P5012, and P7012—under its GoGo brand. These vehicles offer a 251 km driving range and start at ₹3.26 lakh.
• In January 2025, TVS Motor launched India’s first electric three-wheeler, the King EV MAX, priced from ₹2.95 lakh. It offers a 179 km range, fast charging, Bluetooth, and smart digital features.
• Also in January 2025, Hyundai Motor and TVS Motor announced plans to work together on electric three-wheelers and small four-wheelers in India. Their goal is to improve last-mile transport with eco-friendly and practical vehicles for Indian cities.

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