India successfully advanced as the world’s largest electric three-wheeler (e-3W) market in 2023, overthrowing China.
India topped global electric three-wheeler sales last year
The International Energy Agency’s “Global Electric Vehicle Outlook” report revealed that
Global e-3W sales reached nearly 1 million units in 2023, indicating a 30% year-on-year increase. India and China alone claimed over 95% of all-electric and 80% of traditional three-wheeler vehicles.
India sold more than 580,000 e-3Ws last year, up 65% YoY. Meanwhile, China’s sales dropped 8% to 320,000 e-3Ws, pushing it down to the second spot.
Driving factors
The Indian government cites the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) program and lower cost of ownership as primary factors driving the local e-3W industry.
The FAME II subsidy program offers incentives to accelerate the country’s electric vehicle uptake.
Moreover, Uttar Pradesh also plays a significant role in the successful and continuous adoption of e-3W in the country. According to the Times of India, the state contributed a large portion of the country’s e-3W sales. It reportedly sold more than 61,000 units in 2024.
“The vehicles are essential to decarbonized last-mile connectivity and intra-city small goods deliveries. India is therefore close to an inflexion point in this segment, with falling prices and consistent government support putting electric three-wheelers in touching distance of price parity with their ICE counterparts.”
Aarti Khosla, Uttar Pradesh’s Climate Trends Director
China maintains dominance in electric two-wheeler segment
Despite losing its electric three-wheeler throne from India, China managed to defend its dominant position in the electric two-wheeler (e-2W) segment.
China reportedly conquered 78% of the global e-2W market with almost 6 million unit sales last year. It represents a significant headway from India’s 880,000 e-2W sales in the same period.
Nonetheless, India’s e-2W sales surged by a whopping 40% in 2023 compared to the prior year. Five major players lead the local e-2W market, including Ola Electric, TVS Motor, Ather, Bajaj, and Ampere, with a 75% volume share.
Considering these significant advancements in India’s EV push, the government is now aiming to extend the adoption to other vehicle types. According to International Council on Clean Transportation Managing Director Amit Bhatt, “this transition needs to extend to other vehicles, particularly trucks,” to deliver a “meaningful impact on climate change.”
The progressive adoption of electric vehicles across the world prompted the IEA to forecast global sales to hit approximately 17 million this year.
