Global Three Wheeler Market Research Report: Forecast (2023-2028)

Market Definition

A Three-wheeler vehicle, usually accelerated by petrol/CNG, diesel, or electric motors, is extensively used for convenient transportation, short-to-medium distances, and last-mile connectivity. The mobility of a three-wheeler depends on maneuverability, accessibility, and door-to-door transport. 

Market Insights

The Global Three Wheeler Market is projected to grow at a CAGR of around 11% during the forecast period, i.e., 2023-28. Three-wheelers have a broader utility in several industries, such as passenger carriers within the city and also transportation of goods and services across the cities. However, the Covid-19 pandemic severely affected the automotive segment on a global level and gave rise to a substantial drop in automotive deals due to the inadequacy of raw materials and others. Many small and big key players in the manufacturing segment spotted issues such as the cessation of production activities, authorized plant terminations by the government, and others that have impacted the market growth.

Nevertheless, after the pandemic-related restraints were lessened, such as opening offices, schools, and other public places, the revenue flow of manufacturing components inflated in the global economy and facilitated the market shareholders to heighten progressive opportunities across the world. In addition, frequent technological advancements have produced three-wheelers with GPS navigation, remote sensors, anti-theft locking systems, and other elements estimated to fuel market enlargement. Thus, factors such as an upsurge in demand for affordable commercial vehicles and low maintenance costs steer the demand for the three-wheeler market globally.

Moreover, many companies in e-commerce, textiles, retail, FMCG, and other utility components prefer three-wheelers as a last-mile connectivity solution as they offer exceptional maneuverability at affordable cost. Furthermore, the growing awareness of vehicular emissions and environmental concerns has considerably encouraged passenger preference for electric variants of such vehicles. As a result, manufacturers are improving smart batteries with fast-charging equipment for electric three-wheelers. Additionally, many key players are very ardent about converting their last-mile delivery systems to electric due to added benefits, thereby adding to market’s growth for electric variants.

Market Dynamics

Key Drivers: The Growing Demand for Last-Mile Mobility Solutions for Transporting People and Goods

The rising demand for affordable commercial vehicles for last-mile connectivity is the prime aspect driving the demand for three-wheelers worldwide. On top of it, these vehicles have garnered the attention of both owners and users owing to their low turning radius, compact size, application elasticity, and economical operating costs. Again, since these vehicles exhibit a lower rate of significant accidents than heavy vehicles and cars, minimal pavement damage is caused, thereby reducing the highway maintenance cost.

However, the considerably higher running and maintenance cost of petrol/diesel and CNG three-wheelers trusted the preferences of electric-three wheelers for short commutations, thereby maximizing the sales of electric variants. Thus, the ever-expanding utilization of three-wheelers for short to medium distances in urban places, especially near metro stations, malls, railway stations, and others, drives the industry further.

Growth Opportunity: Emerging Electrification of Vehicles due to Environmental Concern

Numerous governments and organizations have propelled various subsidy schemes to motivate buyers to prefer electric-powered three-wheelers over conventional vehicles. It is primarily because of the increasing price of fuel at the international level, rising pollution problems, and traffic congestion specifically in urban places have further progressed the recognition of electric three-wheelers across the globe. Thus, automotive manufacturing industries and governments are capitalizing high proportion in enhancing and fostering the electrification of vehicles. Furthermore, the increasing fuel prices at the global level, expanding population, and traffic congestion exclusively in urban areas have further progressed the recognition of electric three-wheeler vehicles.

Possible Restraint: The Emerging Presence of Bike Taxis as Compact & Economical Commuting Solutions in Densely Populated Areas

Over the past few years, the rising road congestion and lack of parking spaces have made people switch to two-wheelers. People in metropolitan cities, especially daily commuters, are showing an affinity for bike taxis as they offer a hassle-free and economical ride, and that too in the least time. The emerging presence of bike taxis or rentals is making people avoid three-wheelers in order to reduce waiting time for shared autos and eliminate traffic struggles. Although bike taxis are in their infancy, they might pose a threat to three-wheelers autos in the long run, thereby impeding market growth.

Key Trend: Expanding Shared Mobility and Ride-Hailing Services

Digitally enabled auto-sharing and ride-hailing services to manage travel most smartly to deliver a trouble-free and environmentally sound alternative to private car ownership. Thus, shared mobility and ride-hailing services will likely play a substantial role by diminishing manual tasks and reducing overall time and cost in the coming years. These ventures include complete travel planning from a single mobile application that can manage payments and decrease city congestion and overall vehicle emissions. This trend of ride-sharing apps has increased in recent years, which anticipated the market's growth. 

Market Segmentation

Based on Usage,

• Passenger Carriers
• Goods Carrier
• Personal Use

Among its peers, Passenger Carriers are expected to hold a higher share of the market during the forecast period. This dominance is ascribed to the high socio-demographic growth rate, particularly in developing countries with a larger middle-class population who chooses public transport instead of private vehicles for daily travel purposes. Furthermore, governments at the federal and state levels have introduced incentives and subsidies to motivate the adoption of sustainable public transportation in urban and rural areas, which is likely to inflate the market growth. In addition, the necessity for last-mile connectivity is developing, and electric three-wheelers are eco-friendly and economical compared to taxis and cabs, maximizing a high reputation in the market.

Based on Fuel Type,

• Petrol
• Diesel
• LPG/CNG
• Electric
• Others

The Diesel segment acquired a higher share in the global three-wheeler market in the historical period owing to the higher power and load-carrying capacity of diesel-powered vehicles. Although diesel-powered 3Ws are mainly employed for the commutation of cargo, their utilization for passenger carriers is also noteworthy. On the other hand, the continuing regulatory alterations associated with vehicle emissions have led to a decline in the production and sale of fossil fuel-based vehicles. Thus, greener vehicles, such as those powered by CNG or electricity, have been witnessing heightened admiration for the past few years. Consequently, CNG and Electric variants are also expected to expand exclusively in the coming years.

Regional Projection

Geographically, the Global Three Wheeler Market expands across:

• Asia-Pacific 
• Latin America 
• Africa 

Asia-Pacific dictates the market for three-wheelers, and this trend is anticipated to endure over the forecast period. With China and India holding a prominent market share, the region is likely to bode well for the industry players. With 267,296 of the 296,430 total units sold, the top three Manufacturers, Bajaj Auto, Piaggio, and Mahindra, control 90% of the market in India, according to a macro analysis of SIAM's overall wholesales data table. With 177,250 units, up 92% from April to November 2022, Bajaj Auto enjoys a dominant 60% share of the three-wheeler market.

Similarly, with 54,187 units, a rise of 118%, Piaggio Vehicles, the No. 2 player, has expanded its share from 16.59% to 18.27%. Mahindra & Mahindra also performed well, increasing its unit count by 112% to 35,859 and increasing its market share from 11.26% to 12%. Thus, with a similar growth rate, the market in the Asia-Pacific region is projected to witness a gain alongside expanding electric car demand and improved government measures in other countries like China.

Do You Require Further Assistance?

1. The sample report seeks to acquaint you with the layout and the overall research content.
2. The deliberate utilization of the report may further streamline operations while maximizing your revenue.
3. To gain an unmatched competitive advantage in your industry, you can customize the report by adding more segments and specific countries suiting your needs.
4. For a better understanding of the contemporary market scenario, feel free to connect to our knowledgeable analysts.

Frequently Asked Questions