A three-wheeler is a vehicle to commute short distances and carry loads. Usually, only 5 to 6 passengers are carried on three vehicle rickshaw or van. Three vehicles generally operate on electric, diesel, petrol, LPG and CNG fuel types. The usage of electric three-wheelers is surging not only for the passenger carriers but also for carrying loads. These vehicles are increasingly deployed as delivery vans to carry goods from one place to another. The three-wheeler market would drive in the future due to the lack of public transportation facilities and the growing need for shipment facilities.
The companies such as Xianghe Qiangsheng Electric Tricycle Factory (China) and Hero Electric Vehicles Pvt. Ltd (India) is focusing on the development of hybrid and electric vehicles for faster adoption and less fuel consumption. In 2019, India was the leading exporter of three-wheelers and is a prominent market for three-wheelers. In India, the government launched scheme Faster Adoption and Manufacturing of (hybrid) and Electric Vehicles by 2030 increasing the adoption of electric-vehicles rapidly for sustainable development. China had the highest registration of Electric Vehicles in 2019. Moreover, the inclination towards the last-mile delivery of products is expected to drive the market in the future period.
According to MarkNtel Advisors’ research report “Global Three Wheelers Market Analysis, 2020”, the CAGR of the global three-wheeler market is anticipated to reach 13% during 2025. The global total production of three-wheelers in 2019 was around 24 Million as compared to 23.15 Million in 2018. Manufacturers of three-wheelers are customizing the products according to the preferences of customers.
Asia-Pacific to Witness the Fastest Growth During 2020-2025
In 2019, Asia-Pacific was the main market and the production house for three-wheeler vehicles with a market share of around 50% in global production. China and India were the major markets in this region in the same year. Also, India and China are the largest producers as well as the largest exporters worldwide due to the presence of a strong global dealership network.
The three-wheelers in underdeveloped countries such as Egypt, Mozambique, Nigeria, Bangladesh, Pakistan, Nepal act as the major transportation system due to the low disposable income of the individual, less developed roads infrastructure. These countries depend on the exportation of three wheelers from India and China.
Enhanced Global Distribution Network
India and China are considered as the leading suppliers of the Three Wheelers. Bajaj Auto followed by Piaggio & C are the largest manufacturers and distributors across the globe. Bajaj Auto exports three-wheelers to around 36 countries namely Sri Lanka, Bangladesh, Nepal, Egypt, Iran, Philippines, Uganda, South Sudan, Nigeria, Ethiopia, Congo, Kenya, Angola, Tanzania, Mexico, Peru, and Colombia. Bajaj has a vast distribution channel and dealership network. Moreover, mergers and acquisitions also drive the market to boost during 2020-25.
According to MarkNtel Advisors’ research report, “Global Three-Wheeler Market Analysis, 2020”, some of the major leading players of the Global Three-Wheeler market are TVS Motor Company, Bajaj Auto Limited, Mahindra and Mahindra Limited, Scooters India Limited, Piaggio & C. S.p.A, Chongqing Zongshen Tricycle Manufacturing Co., Ltd., Atul Auto Limited, Ningbo Dowedo International Trade Co., Ltd, Terra Motors Corporation and Lohia Auto Industries among others. Bajaj Auto captures the largest market share globally which exports three-wheeler vehicles to 36 countries. Bajaj Auto has all three variants in diesel, petrol, CNG, and LPG. Bajaj Auto is well known for research and development, process engineering and lost cost manufacturing skills.
According to MarkNtel Advisors’ research report, “Global Three-Wheeler Market Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting revenue and units sold, hotspots and opportunities available for automotive seats across the globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the formulation of Go to Market Strategies and identifying the blue ocean for its offerings.
Key questions answered in the study