Electric 3-wheeler market hots up as companies look at alternate mobility

CHENNAI: The electric three-wheeler market is suddenly red hot right now as a host of technology startups and vehicle manufacturers look to enter alternative mobility.
First, Chetan Maini co-founded Sun Mobility announced its tieup with Piaggio to launch electric Ape three wheeler variants on their swappable battery architecture. Now Bengaluru-based Altigreen is all set to roll out cargo and passenger three-wheelers based on their own patented drivetrain platform through ‘multiple’ OEM partnerships.While Amitabh Saran, CEO, Altigreen Propulsion Labs is tightlipped, industry sources say tieup talks are on with the likes of Bajaj Auto, Scooters India and Lohia Auto. Meanwhile OEMs like Lohia Auto say three-wheelers — including those on the Altigreen platform — will be their focus area for an electric mobility play.
Altigreen, said Saran, is currently getting product type approvals from ARAI and the three wheelers, both cargo and passenger, should hit the market by February-March. “The current order and focus is on cargo,” said Saran. “Commercial vehicle category becomes obvious choice for electrification because this segment is driven by rupee per kilometre. But the customer needs rugged variants for last mile connectivity which can match petrol, diesel, CNG versions in terms of price and performance,” he added.
Mobility experts expect India’s roughly 8 lakh strong domestic three wheeler market to move to electric in the next decade. “Internal combustion version will continue to be manufactured for export market which is a good 40% of the total three wheeler sales in India,” said Ayush Lohia, CEO, Lohia Auto Industries. His own company, he added, is “majorly focussing on electric three wheelers only and launching a few products starting March.” Lohia Auto, he added is “working on multiple platforms including an Altigreen platform for three wheelers. We are expecting a big boom in the electric three wheeler market and in 5-7 years the entire domestic three-wheeler market should go electric,” added Lohia.
Industry experts say the focus on electric three-wheelers is also because it is low hanging fruit particularly in the last-mile segment, a market that has produced hugely successful ICE (internal combustion engine) products like the Tata Ace for example. “A cargo customer uses two wheelers for last mile transportation of small packages or a small four-wheeler for more load,” said Saran. “That segment — last mile transportation with 200-500 kg payload — fits with what Altigreen is focussing on,” he said.
On the passenger side too last mile transportation will be the focus. What helps is the export angle. In the April-November period, exports at 3,49,295 units were nearly 47% of the total three-wheeler market. Domestic sales were 4,53,459 units. Since vehicle companies are pursuing electric export options, for tech startups it’s another opportunity. “We are pursuing business opportunities outside India in terms of sales and marketing opportunities — the OEMs with whom we are working are pitching it to global vehicle manufacturers,” said Saran.
Of course not all electric mobility players are looking at three wheelers. For some, two wheelers continue to be the focus. “We had launched electric three wheelers but it is not a focus area for us anymore. It’s a big potential market but we believe more in our two wheeler play at this point,” said Naveen Munjal, MD, Hero Electric.