Report Overview

India Three-Wheeler Market- Industry Trends & Forecast Report 2027

India three-wheeler market was worth USD 7.64 billion in 2020 and is further projected to reach USD 14.02 billion by the year 2027, growing at a CAGR of 9.1% in the forecast period. The market is driven by the lack of sufficient transportation infrastructure, especially in small cities, and heavy dependence on three-wheeler auto-rickshaws for mobility due to volatile fuel prices. Furthermore, the increasing launch of electric three-wheeler vehicles is anticipated to propel the India three-wheeler market growth during the forecast period.

Source: BlueWeave Consulting

India Three-Wheeler Market- Overview

As the name goes, three-wheelers are vehicles having three wheels. Many types of three-wheelers are available in the market, including autorickshaws, motorcycles with sidecars, three-wheeler trucks, etc. Nevertheless, in relation to the Indian market, the term three-wheeler refers to autorickshaws--a vehicle used to transport both goods and people in urban areas. For millions of Indians, autorickshaws are their primary mode of transportation. They are extremely popular in the Indian market as they are cheap to manufacture and thus have low prices compared to other vehicles.

India Three-Wheeler Market Forecast and Trends

Growth Drivers

Lack of Public Transportation System

The lack of sufficient public transport infrastructure acts as a major driving factor for the India three-wheeler market. Apart from certain metropolitan cities, such as Delhi and Kolkata, public transportation is not widely available in India. The residents are thus dependent on three-wheeler auto-rickshaws for their transportation needs, which drives the demand for three-wheelers in India. Market growth is also being driven by overcrowding in various cities such as Mumbai. The city has about 460k auto-rickshaws.

Growing Penetration of Electric Three-Wheeler Vehicles

The growing pollution from petrol and diesel vehicles, coupled with the volatile fuel price, is driving interest in electric three-wheelers among the target demographic. Because of this, the industry players are increasingly launching new ranges of three-wheelers to capitalize on the burgeoning market. For instance, Tube Investments of India recently announced plans to launch an electric three-wheeler passenger vehicle by March 2022. Piaggio Vehicles India has also announced the launch of the Ape electric three-wheeler range in Hyderabad city. Such launches are anticipated to boost the market growth during the forecast period.

Restraints

Increasing Penetration of Cab Services

The increasing popularity of ride-hailing services such as Ola and Uber may act as a huge restraining factor for the market growth. Owners and drivers of three-wheelers primarily come from the underprivileged sections of the country and often migrate to densely populated areas and cities to earn a living. However, as consumers shift towards ride-hailing services, these migrants will have to take on other jobs to get by. Though India's cab services offer auto-rickshaw options, the younger demographic is more inclined to ride a four-wheeler, which could hamper the market growth for three-wheelers.

Impact of COVID-19 on India Three-Wheeler Market

The India three-wheeler market was one of the most badly affected sectors in the country due to the sudden outbreak of the COVID-19 pandemic. With India’s rapidly increasing COVID-19 cases, the government imposed strict lockdown, resulting in complete mobility and transportation restrictions. As a result, the demand for three-wheelers witnessed a sharp decline, incurring huge losses to the market. Moreover, the market is estimated to show slow growth after COVID-19 due to a growing work-from-home culture that hinders mobility.

India Three-Wheeler Market - By Vehicle Type

Based on vehicle types, the India three-wheeler market is segmented into passenger carrier and load carrier. The passenger carrier segment accounts for the largest market because of the lack of a sufficient public transportation system in the country. The unplanned and haphazard growth of the Indian cities is leading to severe crises in terms of public mobility. Therefore, public transportation is heavily dependent on autorickshaws. On the other hand, the load carrier is anticipated to witness the highest growth during the forecast period because of the flourishing e-commerce business.

India Three-Wheeler Market - By Passenger Vehicle

Based on passenger vehicles, the India three-wheeler market is segmented into 3-seater, 4-seater, and 6-seater. Among these, the 4-seater passenger vehicle segment accounts for the largest market share. Government regulations play a crucial role in driving this segment’s growth. The 6-seater rickshaw model was officially banned in Pune by the Regional Transport Authority (RTA) in 2003. Due to this, the demand for 4-seater is most prominent in India. However, the 6-seater rickshaw model still covers a substantial share in the market due to its use in other parts of the country, such as Uttar Pradesh.

India Three-Wheeler Market - By Fuel Type

Based on fuel types, the India three-wheeler market is segmented into petrol/CNG, diesel, and electric. Petrol and CNG-powered vehicles have the most prominent presence in the India three-wheeler market. The high number of petrol and CNG pumps across various locations plays an important part in driving the demand for this segment.

However, highly volatile fuel prices and their increasing rate is prompting consumers to increasingly shift towards electric vehicles, due to which the electric segment is gaining significant traction. Furthermore, increasing environmental consciousness and favorable government initiatives for cutting carbon emission are driving the demand for electric three-wheelers in India. By 2030, India plans to convert 30% of all wheels on roads into electric vehicles. The country currently has around 6 million three-wheelers on its roads. Since electric three-wheelers are gaining in popularity, manufacturers of such vehicles are investing heavily, thereby propelling the segment's growth.

India Three-Wheeler Market - Regional Insights

Geographically, the India three-wheeler market is segmented into North India, South India, East India, and West India. North India accounts for the largest market share because of the inadequate public transport facilities. Establishing a public transportation system in mountainous regions is almost impossible due to uneven terrain, frequent landslides, and earthquakes. Therefore, the residing population is dependent on auto-rickshaws for transportation. On the other hand, South India also covers a substantial share in the market because of the high concentration of auto-rickshaws in cities like Mumbai and Pune.

Competitive Landscape

The leading players in the India three-wheeler market are Bajaj Auto Limited, Piaggio Vehicles Pvt. Ltd., Mahindra & Mahindra Ltd., Atul Auto Limited, TVS Motor Company Limited, Saera Electric Auto Pvt. Ltd., Lohia Auto Industries, Scooters India Limited, JS Auto, Force Motors Ltd., and other prominent players.

The India three-wheeler market is dominated by automobile giants such as Bajaj Auto Ltd. M&M, Force Motors, etc. Among these leading players, Bajaj rules over the market as the world’s largest auto rickshaw manufacturer. To gain a larger share of the market, players launch a variety of models for both commercial and passenger vehicles. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In October 2021, Euler Motors, a leading electric commercial vehicle company, announced the launch of Euler Hiload, its first electric cargo three-wheeler at the introductory price of Rs. 3,49,999 (approx 4664).

Scope of the Report

By Vehicle Type

• Passenger Carrier
• Load Carrier

By Passenger Vehicle

• 3-Seater
• 4-Seater
• 6-Seater

By Fuel Type

• Petrol/CNG
• Diesel
• Electric

By Region

• North
• South
• East
• West

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Lack of Public Transportation System
         2. Growing Penetration of Electric Three-Wheeler Vehicles
      2. Market Restraints
         1. Increasing Penetration of Cab Services
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Increasing Demand for Load Carriers
         2. Income Association with Three-Wheeler Autorickshaws
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. India Three-Wheeler Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Vehicle Type
         1. Passenger Carrier
         2. Load Carrier
      2. By Passenger Vehicle
         1. 3-Seater
         2. 4-Seater
         3. 6-Seater
      3. By Fuel Type
         1. Petrol/CNG
         2. Diesel
         3. Electric
      4. By Region
         1. North
         2. South
         3. East
         4. West
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on India Three-Wheeler Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Bajaj Auto Limited
   2. Piaggio Vehicles Pvt. Ltd.
   3. Mahindra & Mahindra Ltd.
   4. Atul Auto Limited
   5. TVS Motor Company Limited
   6. Saera Electric Auto Pvt. Ltd
   7. Lohia Auto Industries
   8. Scooters India Limited
   9. JS Auto
   10. Force Motors Ltd.
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: India Three Wheeler Market Segmentation

Figure 2: India Three Wheeler Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: India Three Wheeler Market Size, By Value (USD Billion), 2017-2027

Figure 5: India Three Wheeler Market Share (%), By Vehicle Type, By Value, 2017-2027

Figure 6: India Three Wheeler Market Share (%), By Passenger Vehicle, By Value, 2017-2027

Figure 7: India Three Wheeler Market Share (%), By Fuel Type, By Value, 2017-2027

Figure 8: India Three Wheeler Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: India Three Wheeler Market Size, By Vehicle Type, By Value, (USD Billion), 2017-2027

Table 2: India Three Wheeler Market Size, By Passenger Vehicle, By Value, (USD Billion), 2017-2027

Table 3: India Three Wheeler Market Size, By Fuel Type, By Value, (USD Billion), 2017-2027

Table 4: India Three Wheeler Market Size, By Region, By Value (USD Billion), 2017-2027

Table 5: Bajaj Auto Limited Financial Analysis

Table 6: Bajaj Auto Limited Business Overview

Table 7: Piaggio Vehicles Pvt. Ltd. Financial Analysis

Table 8: Piaggio Vehicles Pvt. Ltd. Business Overview

Table 9: Mahindra & Mahindra Ltd. Financial Analysis

Table 10: Mahindra & Mahindra Ltd. Business Overview

Table 11: Atul Auto Limited Financial Analysis

Table 12: Atul Auto Limited Business Overview

Table 13: TVS Motor Company Limited Financial Analysis

Table 14: TVS Motor Company Limited Business Overview

Table 15: Saera Electric Auto Pvt. Ltd Financial Analysis

Table 16: Saera Electric Auto Pvt. Ltd Business Overview

Table 17: Lohia Auto Industries Financial Analysis

Table 18: Lohia Auto Industries Business Overview

Table 19: Scooters India Limited Financial Analysis

Table 20: Scooters India Limited Business Overview

Table 21: JS Auto Financial Analysis

Table 22: JS Auto Business Overview

Table 23: Force Motors Ltd. Financial Analysis

Table 24: Force Motors Ltd. Business Overview