LONDON--(BUSINESS WIRE)--According to the latest research report released by Technavio, the market growth for electric three wheelers is predicted to grow at a CAGR of 7% until 2020.
This report titled ‘Electric Three Wheeler Market in APAC 2016-2020’ provides an in-depth analysis of the market in terms of both revenue and emerging market trends. This market study also presents up to date analysis and forecast estimates for various market segments and leading countries.
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Technavio’s lead aerospace manufacturing industry analyst, Faizan Akthar, says, “Three-wheelers are widely used as both passenger and goods carriers in China, India, and Japan. Traditional three-wheeler vehicles are major contributors to air and noise pollution. Therefore, with low ownership and operating costs, electric three-wheelers are predicted to witness significant growth in APAC over the next four years.”
“The cost of replacing damaged parts caused by acid leakages in vehicles has also significantly increased the advantage of electric three-wheelers in this region. To leverage their advantage over ICE (internal combustion engine) vehicles, electric three wheeler manufacturers are expected to increase the efficiency of Li-ion batteries over the next four years,” adds Akthar.
The market is also witnessing the influx of wireless technology for charging three wheeler vehicle batteries. The key findings of the market study indicate, in the future, wireless charging equipment will provide immense traction to the sales of electric three wheelers. Currently, Bosch sells plugless power units developed by Evatran that are installed as a retrofit for vehicles such as the Chevrolet Volt and Nissan LEAF. To leverage the opportunity presented by the three wheeler market, many new vendors are expected to enter APAC until 2020.
Some of the other driving forces behind the growth of the three wheeler market in APAC are:
- Growing demand for eco-friendly transportation
- Shift in manufacturing base for Li-ion batteries from Japan to China
- Subsidy schemes
Growing demand for eco-friendly transportation
Zero exhaust emissions, noiseless operation, low space requirement, and low costs are some of the advantages offered by three wheeler electric vehicles. Our research predicts electric three-wheelers to emerge as one of the key modes of transportation over the next four years due to its convenience and ease of use in dense stop-start traffic conditions in the APAC region.
We expect a substantial share of small distance transport up to 12.5 miles to be enabled by electric three-wheelers in the coming years in this region. In addition, shrinking parking spaces in large cities should create market potential for the use of electric three-wheelers as these vehicles require moderate to low parking space.
Shift in manufacturing base for Li-ion batteries from Japan to China
Uncertain economic scenarios in Japan and other developed countries following the 2008-2009 financial crisis resulted in the gradual shift of manufacturing bases for Li-ion batteries to China. Following the recession, investments and global trade declined considerably. However, China registered sustainable growth during 2008-2009 which encouraged Japanese manufacturers to shift their base to China. These developments have encouraged three wheeler manufacturers to develop Li-ion batteries at lower costs thus giving a price advantage to buyers of these vehicles.
Subsidy schemes
Strong government support and financial incentives for both customers and manufacturers are boosting the popularity of EVs in APAC. Countries such as China, South Korea, Indonesia, and Bangladesh are implementing incentive programs, subsidies, and tax exemptions to boost the sales of electric three-wheelers and other electric and hybrid vehicles.
“The faster adoption and manufacturing of electric and hybrid vehicles (FAME) program was initiated in India to provide USD 132.5 million (until 2020) to increase the manufacturing and sales of electric and hybrid vehicles. Technological development, demand creation, pilot projects, and infrastructure development are the key focus areas of this program,” said Akthar.
This program and others just like it, have made electric three-wheelers eligible for an incentive ranging from $50 to $1,000. This kind of support will result in the development of infrastructure for EVs, encouraging OEMs to invest in R&D to develop high-quality products and expand their base.
Browse Related Reports:
- Electric two wheeler market (E2Ws) in China 2015-2019
- Electric two wheeler market (E2Ws) in China 2015-2019Electric vehicles market in US 2015-2019
- Electric two wheeler market (E2Ws) in China 2015-2019Electric vehicles market in US 2015-2019Global hybrid electric vehicles (HEVS) market 2015-2019
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