India overtakes China to become world’s largest electric three-wheeler market

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One in five three-wheelers sold globally in 2023 was electric, and nearly 60% of those were sold in India, says a new report by The International Energy Agency (IEA).

The report, titled Global Electric Vehicle Outlook, attributes the e-3W sale boost in India to the government subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme and resulting reductions in the cost of ownership of electric 3Ws.

Overall, almost one million electric 3Ws were sold globally in 2023, a 30% growth compared to 2022. The market is highly concentrated, with China and India together accounting for more than 95% of all electric and 80% of conventional 3W sales.

Electric 3W sales in India surpassed 580,000 in 2023, a 65% increase compared to 2022. Sales in China declined 8% in 2023, to 320,000, making the country the second-largest electric 3W market after India.

China accounted for 78% of global electric 2W sales with nearly six million electric 2Ws sold in 2023, compared to 880,000 sold in India and 380,000 in ASEAN countries.

In India – the second largest electric 2W market globally – 2023 sales grew by 40% compared to 2022. The Indian electric 2W market is dominated by the five largest domestic manufacturers (Ola Electric, TVS Motor, Ather, Bajaj and Ampere), which accounted for more than 75% of sales.

 

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