India has retained its position as the largest market for electric three-wheelers (3Ws) in the world for the second year running, according to the International Energy Agency’s (IEA) Global EV Outlook 2025. In 2024, sales of electric 3Ws in India rose by nearly 20%, reaching approximately seven lakh units.
This growth stands in sharp contrast to the 5% contraction in the overall global three-wheeler market. Despite this global dip, electric 3W sales surged over 10% worldwide, crossing the one million mark. India and China together accounted for over 90% of global electric 3W sales, but India led the pack with an impressive 57% electric share, up from 54% the previous year.
Read More: Government Supporting EV Sector Via Various Schemes: EV Stocks in Focus.
The strong momentum in India’s electric 3W sector is largely supported by targeted government schemes, particularly the PM E-DRIVE initiative. This programme aims to facilitate the rollout of over 3 lakh electric 3Ws for commercial purposes.
India’s three-wheeler fleet crossed 10 million vehicles in 2023, forming a vital part of its public and goods transport system. The increasing electrification of this fleet marks a significant shift towards sustainable urban mobility.
India continues to be a leading market for electric two-wheelers (2Ws) as well. In 2024, around 1.3 million electric 2Ws were sold, making up about 6% of the total two-wheeler market.
The number of domestic OEMs rose to 220, with four dominant players accounting for 80% of all sales. Ola Electric’s competitively priced S1X model, introduced at ₹70,000 (US$ 818), has disrupted the market by offering a cost-effective alternative to petrol-powered 2Ws.
Under PM E-DRIVE, subsidies of up to ₹5,000 (US$ 58.43) per kilowatt-hour are available for 2Ws fitted with lithium-ion batteries. Backed by a budget of ₹11,117 crore (US$ 1.3 billion), the scheme targets 2.5 million electric 2W deployments by March 2026.
India’s transition to electric mobility is also evident in the four-wheeler and public transport segments. In 2024, electric car sales neared 1 lakh units, registering a 45% year-on-year increase. In the first quarter of FY25 alone, 35,000 units were sold.
The electric bus sector has also seen notable growth. From fewer than 3,000 electric buses in 2020, India’s stock rose to over 11,500 units by the end of 2024, reflecting a robust push towards decarbonised mass transit solutions.
India’s position as the largest electric 3W-wheeler market globally highlights the country's accelerating shift towards electric mobility. Supported by comprehensive government incentives, strong domestic manufacturing, and rising consumer interest, India is building a diversified and scalable EV ecosystem.
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Published on: May 19, 2025, 3:45 PM IST
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