In India, three-wheelers dominated the roads in September and October, with sales surpassing 100,000 units: FADA
A design in the late 1950s caught the interest of Home Minister Mr. Morarji Desai and then-Prime Minister Mr. Jawaharlal Nehru, resulting in an instant green light for Bajaj Auto and Piaggio to begin production. After almost 64 years, the three-wheelers still dominate Indian roads and are gaining popularity again, as seen by sales that topped 100,000 in September and October for the first time.
Comparing these numbers to the pre-Covid figures of only 58,485 units in September and 63,042 units in October of 2019, there has been a notable increase. This spike is mostly due to the increased popularity of electric vehicles (EVs), which made up almost 56% of all sales in September in the three-wheeler market, according to the data provided by the Federation of Automobile Dealers’ Associations (FADA).
According to Mr. Manish Raj Singhania, the President of FADA, “The three-wheeler market has been thriving. Unlike diesel or petrol vehicles, electric three-wheelers do not require permits to operate in city areas, which were previously distributed under a quota system, limiting the number of permits issued.” As per him, in places like Raipur, electric vehicle penetration is around 80-90%.
Although October's retail sales figures are not yet released, information obtained from the Vahan portal indicates that three-wheeler sales in October hit 100,987 units, up 51% from October 2022, following a September total of 102,426 units.
With a 35% market share, Bajaj Auto is the largest player in the industry. Other players include Piaggio Vehicles (7.4%), Mahindra and Mahindra (6%), Y.C. Electric (4%), Saera Electric Auto (3%), Dilli Electric Auto (2.3%), Atul Auto (2%), and TVS Motor (1.4%). Due to the increased interest in the electric segment, nearly all of these companies are making significant investments in EVs.
Although Bajaj is now the market leader in the petrol segment, industry observers predict that their aggressive EV activities will raise their market share even more. However, companies like TVS Motor are also concentrating on electric three-wheelers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.