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TVS Motor Company expects strong demand for electric three-wheelers in the coming years. Driven by urban mobility needs and lower operating costs, the company projects that by the end of this decade, 60% of three-wheeler sales in the L5 category (high-speed three-wheelers) will be electric. In line with this strategy, the company has also entered the electric cargo three-wheeler segment.
Rajat Gupta, Business Head – Commercial Mobility at TVS Motor, said, “We expect 60% of the market to be electric vehicles by 2030. The passenger three-wheeler segment is currently growing faster than cargo, but demand for last-mile logistics is also rising steadily.”
In FY2025, around 1.6 lakh electric L5 three-wheelers were sold, while total three-wheeler sales (including ICE and electric) stood at around 7.2 lakh units. The passenger segment contributed over 80%, while EV penetration in the L5 category remained at 23%.
India is now the world’s largest market for electric three-wheelers (including both L3 and L5), and this segment is witnessing the fastest EV adoption in the country. Mahindra and Bajaj Auto are currently dominant players, while TVS Motor entered the space earlier this year with its first electric passenger three-wheeler, the “King EV Max.” Now, the company has expanded into the cargo segment as well.
Government schemes such as PM E-Drive (formerly FAME) and the PLI scheme have played a crucial role in boosting sales of electric three-wheelers. Currently, electric three-wheelers receive a subsidy of ₹2,500 per kWh, capped at ₹25,000 per vehicle. However, the government is gradually reducing this support and is expected to withdraw it by the end of this financial year.
Gupta noted that while the market still depends on subsidies, companies are preparing to operate independently once these incentives are phased out.
Meanwhile, the L3 category (e-rickshaws/e-carts) continues to grow, largely driven by smaller, unorganised players. Among OEMs, Mahindra is already present in this segment, and Bajaj Auto is expected to launch its first L3 model soon. North India, especially Uttar Pradesh and Delhi, remains the largest market for e-rickshaws.
In FY2025, registrations of electric three-wheelers in both L3 and L5 categories together reached about 7 lakh units, crossing 50% penetration of total three-wheeler sales in the country.
