Three-wheelers refer to motorised vehicles with three wheels, commonly used for last-mile logistics and affordable public transport in urban and semi-urban areas.

India’s three-wheeler market is witnessing rapid electrification driven by government incentives and rising environmental concerns. Adoption in the three-wheeler segment — passenger and commercial rickshaws — increased by 12.8% on a YoY basis in 2024, with 6.59 Lakh units sold. On a YoY basis, the number of electric three-wheelers registered grew 67% from 5.84 Lakh in 2023.The market is supported by subsidies under the FAME scheme and rising adoption in Tier II and Tier III cities.

Startups are addressing pain points like high operating costs, limited vehicle range and lack of financing options. They provide electric models with longer battery life, telematics for fleet management and flexible leasing plans. Challenges include battery recycling, infrastructure gaps and regulatory hurdles in vehicle certification. Solutions involve battery swapping stations, IoT-enabled maintenance and customised financing products for drivers.

Notable Indian startups in the three-wheeler space include Mahindra Electric, Gayam Motor Works, Kinetic Green and Euler Motors. These companies are advancing electric mobility with innovative vehicle design and integrated fleet services.

Three-Wheelers