Bajaj Auto, a company that has long been engaged with the three-wheeler segment, is looking to strengthen its presence in the electric three-wheeler space as well.
26 Nov 2025 | 13736 Views | By Shahkar Abidi
India’s fast-evolving three-wheeler (3W) market, which serves as the backbone of last-mile connectivity, is experiencing a surprising stagnation in its most basic electric segment.
While the overall industry has nearly doubled in size over the past six to seven years, driven largely by new electric entrants, the explosive growth ...
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India’s fast-evolving three-wheeler (3W) market, which serves as the backbone of last-mile connectivity, is experiencing a surprising stagnation in its most basic electric segment.
While the overall industry has nearly doubled in size over the past six to seven years, driven largely by new electric entrants, the explosive growth of the entry-level electric rickshaw (e-rickshaw) category has recently slowed down over the past 3–4 quarters.
Samardeep Subandh, President of the Intra-City Business Unit at Bajaj Auto Ltd., an industry leader long dominant in the three-wheeler ecosystem, pointed to a slowdown that reflects a significant shift in driver preferences and competition dynamics.
"If you look at the last three–four quarters, the e-rickshaw growth has stopped," said Subandh, on the sidelines of his company's entry into the e-rickshaw category with the launch of Bajaj Riki in Delhi.
He characterized this as "some sort of temporary stagnation."
Growth Jump Post-Pandemic
The overall three-wheeler market, including larger passenger autos and smaller rickshaws, grew from approximately 60,000 units per month in fiscal years 2019 and 2020 to roughly 115,000 to 120,000 units per month today. A massive driver of this historic expansion was the e-rickshaw and e-cart segment, which grew significantly and now accounts for nearly 45,000 units sold monthly. These affordable vehicles quickly became a "true last-mile solution" in many regions across the country.
Entry of Major OEMs Changes Dynamics
The primary reason for this halt, according to Subandh, is a consumer migration driven by greater product availability and competitive forces in the segment immediately above the e-rickshaw: the larger, more sophisticated electric auto category, known in industry parlance as L5 EV autos. This L5 segment historically covered conventional three-wheelers (powered by fuels like CNG and diesel) but is now witnessing an aggressive push into electrification.
Major OEMs, including Bajaj Auto, Mahindra, Piaggio, and TVS, are intensely competing within this larger electric auto segment. This influx of high-quality, dependable vehicles is successfully luring drivers away from the entry-level e-rickshaws, which often face issues related to low range, safety, and durability due to older technologies like lead-acid batteries.
"There is a lot of action happening in the L5 EV auto category... So a lot of customers are upgrading here," Subandh explained.
Automotive Industry Focus Shifts Upmarket
Subandh indicated that this trend is likely to define the future direction of the market, predicting a long-term shift away from the basic e-rickshaw form factor.
"If looking into the future, the e-rickshaw may not grow as fast as it did in the past. I think it goes more towards L5, which is CNG and EV autos," Subandh noted, highlighting the anticipated focus on larger CNG and electric auto vehicles for future growth.
Bajaj Auto, a company that has long been engaged with the three-wheeler segment, is looking to strengthen its presence in the electric three-wheeler space as well. Historically, approximately seven out of 10 three-wheelers in India belong to Bajaj Auto. The company launched Bajaj E-Tec in 2023 and the Bajaj GoGo brand in early 2025. Now, with Bajaj's entry into the e-rickshaw segment with its new ‘Riki’ brand, the company is looking to expand its share of the pie.