India Outpaces China to Dominate Global Electric 3-Wheeler Segment

Introduction

India has once again asserted its dominance in the global electric mobility sector by emerging, for the second straight year, as the world’s leading market for electric three-wheelers. According to the International Energy Agency’s (IEA) Global EV Outlook 2025, the country sold nearly 700,000 electric three-wheelers in the calendar year 2024—an impressive 18% year-on-year increase. In contrast, China, historically the frontrunner, witnessed a 6% decline, with its total sales dropping to 300,000 units.

Electric 3-Wheelers: The Heart of India’s EV Momentum

In 2024, electric three-wheelers accounted for 57% of total three-wheeler sales within India—up from 53% in 2023. The trend wasn't erratic; it was consistently upward, culminating in October’s peak of 67,182 units sold, marking the strongest month in the segment's history.

From January through April 2025, India recorded sales of 235,157 electric three-wheelers, reflecting a 14% increase over the same period in 2024.

Interestingly, while the global three-wheeler market contracted by 5%, the electric sub-segment expanded by over 10%, driven almost entirely by India and China—who together represent over 90% of global e-3W sales.

Read More: Euler Motors Secures 638 Crore INR in Series D Round Led by Hero MotoCorp

PM E-DRIVE Scheme: A Strategic Policy Intervention

Launched in October 2024, the PM E-Drive scheme has been instrumental in catalyzing this growth. The policy, in effect until March 2026, offers targeted subsidies that lower the financial barrier for commercial adoption:

• ₹25,000 (Year 1) and ₹12,500 (Year 2) for passenger e-rickshaws
  
• ₹50,000 (Year 1) and ₹25,000 (Year 2) for cargo e-3Ws in the L5 category
  

Market Landscape: Crowded, Competitive, and Consolidating

With over 550 manufacturers currently active, the Indian electric three-wheeler market is as competitive as it is dynamic. Yet within this saturated ecosystem, a handful of dominant players are steadily defining the market narrative:

• Mahindra Last Mile Mobility (MLMM)
  
• Bajaj Auto
  
• YC Electric Vehicles
  
• Saera Electric Auto
  
• Dilli Electric Auto
  
• Piaggio Vehicles
  
• TVS Motor
  

Among these, MLMM, Bajaj, and YC Electric are locked in a close race for supremacy. Meanwhile, smaller and less-resourced players are expected to either exit the arena or consolidate, leading to a market correction that favors scale, resilience, and innovation.

Conclusion

The electric three-wheeler, once seen as a niche solution, has evolved into a pillar of India's EV ecosystem, thanks to a confluence of fiscal incentives, industrial readiness, and societal demand. As the government continues to invest in sustainable transportation and manufacturers expand their capabilities, India’s trajectory suggests not a peak, but a platform—a launchpad for broader EV leadership on the global stage.

• Stay updated with 91trucks for more articles and news.
• Subscribe to our YouTube channel.
• Follow us on Facebook, Instagram, and LinkedIn.