CNG, LPG, electric grab 63% of 3W market, petrol-diesel see 23% decline in H1 FY2022

The shift towards greener mobility options in the three-wheeler industry, both passenger carrying as well as cargo transportation, is happening in India. As per the latest industry statistics for the three-wheeler sector, sales of both petrol- and diesel-engined models have dropped by 23% year on year in the April-September 2021 period. In comparison, sales of CNG-, LPG- and electric-powered three-wheelers are up 346% (from 13,407 units in H1 FY2021 to 59,834 units in H1 FY2022).  

Look at the data sheet below and the facts reveal that from 77% market share in April-September 2021 (from 46,048 units of , the combined share of petrol and diesel three-wheelers has more than halved to 37%  (35,587 units of a total 95,421 units). This in a matter of just six months. The reason is quite clear: the massive and continuous surge in petrol and diesel prices. Sale of petrol models dropped 23% YoY to 4,063 units from 5,300 units. However, the biggest sales decline is that of the diesel three-wheeler market: 23% drop here too but the volume is much more – 9,224 fewer vehicles sold (40,748 units in H1 FY2021 to 31,524 units in H1 FY2022).

CNG, LPG, Electric eat into petrol-diesel market share 
Making the most of the changing market trends is CNG three-wheeler OEMs who together sold a total of 40,908 units (up 431% YoY), followed by the LPG players with 11,525 units (up 157% YoY)and electric OEMs with 7,401 units (up 510%).

Effectively, this means that these three alternate fuel options have turned the tables on their fossil fuel brethren. With a cumulative 59,834 units in H1 FY2022, they have captured 62.70% of the overall market, up from 22.54% a year ago (13,407 units out of 59,455 units).  This also means that that combined 77.45% petrol-diesel market share has fallen to 37.29% -- from 46,048 units to 35,587 units.

In the CNG domain, the Bajaj RE remains the No. 1 by a huge margin with sales of 21,476 units in the April to September 2021 period, up 557% YoY (H1 FY2021: 3,266 units), followed by the Bajaj Maxima with 10,440 units. The Piaggio Ape with 1,622 units is a distant second and TVS King with 1,215 units third and Atul Gem with 1,040 fourth.

In the LPG field, Bajaj Auto again rules the roost with its RE (5,529 units) and the Maxima (4,632 units), followed by the TRVS King (1,006 units).

Meanwhile, the electric three-wheeler  segment is also witnessing strong demand. In H1 FY2022, it clocked sales of 7,401 units, up 510% YoY (April-September 2020: 1,213). Mahindra Electric, with its Treo passenger and cargo carriers and Alfa passenger carrier, accounts for 4,927 units. While the Mahindra Treo dominates the electric 3W passenger segment with 3,789 units (51%), Piaggio Vehicles with 1,373 units of the Ape E-Xtra FX is the leader in e-3W cargo carriers.

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