Electric 3Ws maintain double-digit growth in November, 11-month sales at record 631,000 units

The electric three-wheeler segment, the second-largest in volumes after electric two-wheelers but the one witnessing the highest level of transition from ICE to e-mobility, has maintained double-digit growth in November 2024. At 63,415 units, year-on-year growth last month was 18% (November 2023: 53,917 units) and makes November the third month in a row that this segment has gone past 62,000 units (see 11-month Vahan-sourced retail sales data table below).

January-November 2024 e3W retail sales at 631,853 units have gone past CY2023’s 583,597 units. Will the segment hit 700,000 units in 2024?

A notable highlight is that cumulative 11-month January-November 2024 sales at 631,853 units have gone past CY2023’s 583,597 units and have scaled a new high for the sector. While the 650,000 milestone will be achieved in the first fortnight of December itself, it remains to be seen just how close the segment gets to the 700,000 mark.

The sustained growth in retails is a result of many factors including lower cost of ownership (compared to IC engine, CNG and LPG options), improved financing options, the FAME-EMPS and now the PM E-Drive purchase incentive scheme, increased product choice and as well as growing demand from fleet and last-mile logistics operators.

Demand for electric three-wheelers soared under the FAME II subsidy scheme, when it kept registering strong double-digit growth. Under the four-month EMPS, which ended on September 30, 2024 and had a reduced subsidy compared to FAME II, monthly sales growth has been more muted and in single digits. Now with the new PM E-Drive scheme – which offers the same subsidy as in the EMPS for the first year and half of that in the second – and effective for a two-year period, it remains to be seen if the same momentum is maintained in the second year.

The PM E-Drive scheme incentivises purchase of 316,000 e-three-wheelers. E-three-wheelers including e-rickshaws, get a subsidy of Rs 25,000 in the first year and Rs 12,500 in the second year. For the L5 category (cargo e-three-wheelers), the incentive is Rs 50,000 per unit in the first year and Rs 25,000 in the second.

Of all vehicle segments, it is the e-three-wheeler industry which is witnessing the fastest transition to electric mobility. Of the total 11,27,985 three-wheelers (across petrol, diesel, CNG, LPG and electric powertrains) sold between January and November 2024, across, electric three-wheelers – 631,853 units – account for 56% of the sales, effectively translating into every second three-wheeler sold in India being an EV. CNG-powered three-wheelers, at 327,712 units, are the next highest and have a 29% share of the overall market, and are followed by diesel (127,035 units, 11% share), LPG (30,192 units, 2.67% share) and petrol (10,739 units, 1% share).

Like the e-two-wheeler industry, there’s fierce competition too in this segment, albeit amongst the Top 6 players – Mahindra Last Mile Mobility (MLMM), Bajaj Auto, YC Electric, Saera Electric Auto, Dilli Electric Auto and Piaggio Vehicles. They are part of an industry which, at last count as per Vahan, has all of 575 players!

In October as well as for January-October 2024, these Top 6 e3W OEMs have registered strong sales – their combined sales in October are 24,995 units (39% of total industry sales) and 209,922 units in January-November 2024 (33% of total industry sales). The real battle though is being fought at the podium level – between Mahindra Last Mile Mobility, Bajaj Auto and YC Electric.

MAHINDRA LAST MILE MOBILITY – November 2024: 7,137 units, up 28% YoY
Market share: November 2024 – 11% / November 2023 market share: 10%
Jan-Nov 2024: 62,545 units, up 26% YoY (Jan-Nov 2023: 49,498 units), CY2023: 54,624 unitsMahindra Last Mile Mobility (MLMM), the market leader in the e3W segment, is setting the pace with strong double-digit growth. The company, whose EV portfolio comprises the Treo, Treo Plus, Treo Zor, Treo Yaari, Zor Grand, e-Alfa Super and e-Alfa Cargo which cater to multiple mobility operations in the passenger and cargo domains, has clocked retails of 7,137 units in November, up 28% YoY. This is the second straight month of over 7,000 units for MLMM, after the record 7,475 units in festive October.

While it has a market-leading share of 11% in November, MLMM’s cumulative January-November 2024 retails at 62,545 units (up 26% YoY) give it a market share of 10 percent. It was in October itself that the EV maker had surpassed its CY2023 retails of 54,599 units, and with November numbers added, it is well set to target the 70,000-units mark in CY2024.

To ensure sustained supplies to meet growing demand, MLMM has tripled its production capacity, leveraging its manufacturing plants in Bengaluru, Haridwar, and Zaheerabad. In July, MLMM signed an MoU with Ecofy to offer ease of finance for 10,000 units through leasing and subscription schemes. This move seems to have paid off given the enhanced volumes in the past few months. MLMM has recently expanded into the electric commercial four-wheeler segment with the launch of the Mahindra Zeo e-SCV.

Suman Mishra, MD and CEO of Mahindra Last Mile Mobility, is strongly bullish on the growth of the sector. In a recent interview with Autocar Professional, she said: "The fundamental value proposition of EVs will only improve with scale. Range and efficiency will increase, and customers will earn more through lower operational costs. This category has seen consistent growth while other sectors have slowed. The demand is organic, and as financing improves and infrastructure develops, the future of electric three-wheelers is brighter than ever.”

She added, "The fundamental value proposition of electric three-wheelers will only get better as the scale increases, and with the right policy and infrastructure support, the growth will continue.” Mishra remains confident about the long-term viability of the Indian electric three-wheeler market, even without subsidies (which is slated after FY2026). "Today, customers are willing to pay a premium of Rs 50,000 to Rs 60,000 for an EV over an ICE vehicle. This reflects the cost-efficiency of EVs.”

BAJAJ AUTO – November 2024: 6,122 units, up 397% YoY
Market share: November 2024 – 9.65% / November 2023 market share: 2%
Jan-Nov 2024: 37,633 units, up 1037% YoY (Jan-Nov 2023: 3,311 units), CY2023: 4,574 unitsBajaj Auto, which is just 17 months old in the electric three-wheeler market, has already made its presence felt in the sector. The Pune-based OEM, which India’s largest three-wheeler manufacturer as well as exporter, has clocked retails of over 6,000 units for the second straight month. While it had sold 6,301 units in October, in November, it sold 6,122 units (up 397% on a low year-ago base).

As in the electric two-wheeler industry, where it is eyeing the No. 2 rank and remains close behind TVS Motor Co – the difference was just 808 units in November 2024 –, Bajaj Auto seems to be attempting the same in the e3W industry albeit MLMM numbers are still some distance away.

In CY2023 (six months since its market entry), Bajaj Auto was ranked 28^th in the field with 2,428 units. In FY2024, in just 10 months after its EV rollout, Bajaj grabbed a 2% market share with 7,525 units and was ranked No. 13. Seventeen months later, its market share has risen five-fold.

From January’s 1,578 units to averaging monthly sales of 6,211 units in October-November, Bajaj is witnessing strong growth. This performance is reflected in its growing market share – from the 3% it had in January 2024, Bajaj Auto’s e3W share has risen to 9.65% in November. On the cumulative sales front, January-November 2024’s 37,633 units give it a 6% market share. From market entry in June 2023 to November 2023, Bajaj Auto has clocked total sales of 42,258 units and risen to podium position in a field of nearly 600 players. What has helped the company is sustained demand for both its products, ramped-up production and an expanded EV sales network.

Bajaj Auto has two products – the RE E-Tec 9.0 passenger EV and Maxima XL Cargo E-Tec 12.0 in the fray. The Maxima XL Cargo E-Tec 12.0, which develops 5.5 kW power and 36 Nm, has a bigger battery and higher range of 183km per charge than the RE E-Tec 9.0 passenger model.

YC ELECTRIC – November 2024: 3,977 units, up 8% YoY
Market share: November 2024 – 6% / November 2023 market share: 7%
Jan-Nov 2024: 40,176 units, up 9% YoY (Jan-Nov 2023: 36,967 units), CY2023: 40,787 units

YC Electric, the longstanding No. 2 e-three-wheeler OEM, has been ranked No. 3 since August when Bajaj Auto went past it and continues to do so. In November, YC sold 3,977 units which constitutes its second-best month after October 2024 (4,601 units). This performance gives the company, which has five products – the Yatri Super, Yatri Deluxe and Yatri for passenger duties and E-Loader and Yatri Cart for cargo operations – a market share of 6%, below MLMM’s 11% and Bajaj Auto’s 10 percent.

SAERA ELECTRIC AUTO – November 2024: 2,263 units, down 16% YoY
Market share: November 2024 – 3.56% / November 2023 market share: 5%
Jan-Nov 2024: 26,192 units, down 2% YoY (Jan-Nov 2023: 26,668 units), CY2023: 29,321 units|
Saera Electric Auto, which manufactures the Mayuri brand of e-rickshaws and e-karts, is ranked fourth in the 3W industry. At 2,263 units (down 16%), November was the third straight month-on-month decline. This is reflected in the reduced market share of the company which currently stands at 3.56% compared to 6% in November 2023. In end-October, the company announced a collaboration with Porter, an on-demand logistics platform to deliver L3 and L5 e-carts. The pilot project will be facilitated in Delhi and Bangalore with the initial projection of delivering 500 vehicles per month in respective cities. The company will be hopeful the strategic partnership gives a fillip to its retails in the months ahead.

PIAGGIO VEHICLES – November 2024: 2,463 units, up 9% YoY
Market share: November 2024 – 4% / November 2023 market share: 4%
Jan-Nov 2024: 20,408 units, up 8% YoY (Jan-Nov 2023: 18,981 units), CY2023: 21,081 unitsNovember 2024 saw Italian major Piaggio Vehicles register its best-ever monthly retails this year – 2,463 units, up 9% YoY – which takes its 11-month total to 20,408 units (up 8% YoY) which is just 773 units fewer than its CY2023 retails of 21,081 units. The company maintain the same market 4% market share it had a year ago. Piaggio’s Apé E-City FX Max passenger model (with 145km range) and Apé E-Xtra FX Max cargo carrier (115km range) are fully assembled by an all-women team at its Baramati factory in Maharashtra. In an effort to simplify e3W ownership and eliminate upfront battery costs, Piaggio has launched a battery subscription model for its Apé Elektrik earlier tyhis year in key markets across India.

Meanwhile, in a manner akin to Bajaj Auto’s growth in the e3W industry, Murugappa Group company TI Green Mobility (Montra Electric), which has recently forayed into this sector, is fast climbing up the ranks. In August, Montra Electric delivered its 5,000th three-wheeler Passenger Auto (L5M category) within one year of launch and market entry. The Chennai-based company registered retail sales of 703 units in November, which gives it a 1% market share, while its January-November cumulative sales are 5,585 units. This performance gives the company No. 16 position, up from No. 23 in October and far below at the start of the year. This is a noteworthy performance given that this sub-segment of the EV industry has the highest number of players – 575 companies – all vying for a slice of the zero-emission action on three wheels only.

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