As one of the early adopters of electric vehicles (EVs) in the country, the three-wheeler segment has reported an EV penetration of 53 per cent in this fiscal, while the penetration of EVs in the two-wheeler and passenger vehicle segments stands at about 5 per cent and 1 per cent, respectively, in FY23, according to the data Vahan Dashboard.
However, the three-wheeler segment is currently driven by unorganised e-rickshaws. Affordability, lower maintenance costs and minimal compliance requirements seem to lead to faster adoption of e-rickshaws
“Given the lower upfront costs and operational savings, coupled with minimal compliance needs, this segment has flourished over the past 5-7 years. However, e-autos, with a higher load-bearing capacity and top speed vis-à-vis e-rickshaws, are also gaining prominence now,” says Shamsher Dewan, Senior Group Vice President & Group Head — Corporate Ratings, ICRA Ltd.
The adoption of e-autos could be faster if only the financial institutions come forward to lend to this segment.
“Since over 95 per cent of the vehicles are bought through financing, the government could ensure in providing adequate financing options to these buyers. This will also help the manufacturers to achieve scale. We have come out with 6 years warranty for our E3Ws to give confidence to banks and other lenders. But, this space still faces challenges in getting adequate financing,” says Uday Narang, Founder and Chairman, Omega Seiki Mobility, a manufacturer of electric three-wheelers.