Three Wheeler Market Size, Share, and Industry Analysis, By Propulsion (Petrol/CNG, Diesel, Electric), By End-use (Passenger Carriers and Goods Carriers), By Component (Powertrain, Body & Chassis, Electrical & Electronics, Wheels & Tires), and Regional Forecast, 2025-2032

A three wheeler is a vehicle with three wheels instead of the typical four, used for short-distance travel in urban areas. It comes in various types, including passenger and goods carriers, often powered by internal combustion engines or electric motors. The global three wheeler market is experiencing a significant surge in demand for three wheelers, driven by various factors, such as urbanization, increasing transportation needs, and a growing emphasis on fuel efficiency and environmental sustainability. Three wheelers, also known as auto rickshaws or tuk-tuks, are versatile vehicles that serve as an essential mode of transportation in several countries and regions, particularly in densely populated urban cities and developing regions.

Major trends that drive the market growth of three wheelers is the adoption of electric three wheelers. Electric three wheelers have lower operating costs compared to their gasoline or diesel counterparts. Electric motors are more energy-efficient, and electricity is often cheaper than gasoline or diesel fuel in many regions. Additionally, electric vehicles have lesser moving parts, resulting in lower maintenance costs over the lifetime, which attracts consumers to adopt electric three wheelers. For instance, in February 2024, Hyderabad's ZERO21 Renewable Energy Solutions Pvt Ltd. launched Project Gagan to transform auto-rickshaw mobility in India. The initiative offers fossil fuel auto-rickshaw owners the choice to retrofit or exchange for electric three-wheelers. The Conversion Kit enables quick electric conversion in under four hours. ZERO21 aims to convert or exchange 100,000 autos within five years.

The COVID-19 pandemic had a significant impact on the global three wheeler market. Lockdowns, restrictions in travel, and economic uncertainty led to a decline in demand for three wheelers, particularly in regions heavily affected by the virus. Production and supply chain disruptions also affected manufacturers, leading to delays and inventory challenges. However, as restrictions eased and economic activities resumed, there was a gradual recovery in demand, driven by factors, such as the need for affordable transportation options and the rise of delivery services. Additionally, the pandemic accelerated trends toward electric mobility and sustainability, leading to increased interest in electric three wheelers as cleaner and more efficient alternatives.

Key Insights

The report covers the following key insights:

• Latest Developments


• Porter's Five Forces Analysis.


• Technological Developments


• Impact of COVID-19 on the Market

Segmentation

Analysis by End-use

The end-use segment is bifurcated into passenger carriers and goods carriers. The passenger carriers segment dominates the market due to its application in urban transportation. In crowded cities and towns, three-wheelers provide a convenient and cost-effective mode of transportation for short-distance travel. They are able to navigate through narrow streets and congested traffic, making them popular among commuters for daily transportation needs. Three-wheelers often fill the gap in public transportation networks by providing last-mile connectivity to areas not easily accessible by buses or trains. They serve as feeder services, transporting passengers from transit hubs to their final destinations, which drives the market growth of the segment over the forecast period.

Regional Analysis

The global market is geographically segmented into North America, Europe, Asia Pacific, and the Rest of the world. The Asia Pacific region is attributed to dominating the market due to cultural and economic factors. In many Asian cultures, three-wheelers have long been a familiar sight on the streets. They are deeply ingrained in the transportation landscape and are often preferred by both operators and passengers due to their convenience and familiarity. Additionally, three-wheelers are often cheaper to purchase and operate compared to traditional four-wheel vehicles. They require less fuel, maintenance and are generally more affordable for both operators and passengers. This affordability makes them a preferred mode of transportation, especially in emerging economies of the Asia Pacific region.

Key Players Covered

The report includes the profiles of key players, such as Bajaj Auto (India), Piaggio Group (Italy), TVS Motor Company (India), Mahindra & Mahindra (India), Atul Auto Limited (India), Lohia Auto Industries (India), Scooters India Limited (India), Kinetic Engineering Limited (India), Terra Motors Corporation (Japan), Qiangsheng Electric Tricycle Factory (China), Chongqing Zongshen Tricycle Manufacturing Co., Ltd. (China), Jiangsu Kingbon Vehicle Co., Ltd. (China), and Chongqing Tengzhou Motorcycle Co., Ltd. (China).

Key Industry Developments

• In October 2023, Altigreen, the electric three-wheeler manufacturer, signed a partnership with MathWorks, a developer of mathematical computing software, to accelerate the development of Altigreen's flagship electric three-wheeler, the NEEV. These electric three-wheelers were designed and priced to make them accessible to small business owners, independent drivers, and fleet operators in India.


• In September 2022, TI Clean Mobility introduced the Montra Electric three-wheeler. The vehicle featured a 10 kWh battery pack delivering a superior range of 197 km with ARAI Certification and 155+/-5 km in typical conditions. It also boasted an industry-leading peak torque of 60 Nm and max speed of 55 kmph. Additionally, Park Assist and multiple-drive models are available to enhance fuel efficiency.