Advances in Electric Three-Wheelers Revolutionizing the Commercial Vehicle Industry

Highlights:

• Introduction
• Latest advances in electric three-wheelers
• Hero’s convertible Surge S32
• Key acquisitions by leading players in the domain

Three-wheeler vehicles are a key vehicle segment in the overall commercial vehicle industry that are broadly categorized into cargo and passenger. In recent years, these vehicles have gained huge popularity among buyers or transport entrepreneurs because of their numerous advantages. These vehicles are compact, easy to navigate, cost-effective, and offer lower operating costs. These factors make them the most suitable vehicle type to reach the consumer door steps fast and efficiently. Such vehicles are widely used to transport goods and services from one location to another location or one city to another. They are also called e-tricycles as they include a combination of a single front wheel and two back wheels. These days, the rising emphasis on greener mobility has increased the demand for electric three-wheelers.

What advancements in electric three-wheelers can reshape the industry?

Over the past few years, the rise in e-commerce activities and intra-city logistics requirements has increased the demand for three-wheelers. Furthermore, the advancements in battery technology have further helped the industry to gain huge traction. Mostly, the electric three wheelers are powered by lead-acid and lithium-ion batteries. The vehicles fitted with lead-acid batteries are gaining consumer’s attention because of their affordability, easy availability, and high output capacity.  On the other hand, three-wheeler vehicles equipped with lithium-ion batteries are gaining immense popularity because of their high-energy density. They play a major role in increasing the mileage of vehicles without adding extra weight to the vehicles. In addition, they take less time to charge compared to lead-acid based vehicles.

With technological advancements, electric 3-wheelers are now equipped with advanced features such as cellular capability, enhanced network connectivity, and smart metering that allow for better supervision of operations. Moreover, the vehicles are enabled with preventive maintenance that help reduce downtime during business hours. In addition, better GPS navigation capabilities and app-controlled features have further enhanced the performance of the vehicle and optimized user experience and convenience.

Hero’s Surge S32 – A convertible electric three-wheeler

In January 2024, Surge, a Hero Motor-Corp's startup launched its new product, namely, Surge S32, a unique three-wheeler electric vehicle that can be converted into an electric two-wheeler scooter in just 3 minutes. According to the company, this vehicle is designed for self-employed people, offering them a flexibility of using both an electric rickshaw and an electric scooter within the same vehicle. This vehicle has drawn the concept of large vehicles with a detachable 2-wheeler. Owners of this vehicle can convert electric scooter and a 3W electric rickshaw interchangeably, enabling users to enhance both their earning potential and overall lifestyle. Surge S32 resembles a conventional 3W electric cargo vehicle, offering a front passenger cabin equipped with essentials including windscreen, headlights, turn indicators, and wipers. The company is also planning to add removable and zippered soft doors for weather protection.

How are the recent alliances made by the leading players changing the industry landscape?

The three-wheeler industry has witnessed prominent growth due to the surge in the adoption of electric three-wheelers as an electric mobility among several countries across the globe. Many leading players in the domain have made alliances such as mergers, acquisitions, partnerships, and collaborations and come up with innovative product launches to foster the industry’s competitiveness. For instance, in April 2023, TVS Motor, an Indian multinational motorcycle manufacturer announced its acquisition of Killwatt GmbH, a leading German-based electric mobility startup. With this acquisition, the companies aimed to develop, design, manufacture, sale, and distribution of high-tech components and products for electric two-wheeler and three-wheeler vehicles.

Similarly, in February 2023, Mahindra Electric Mobility Limited merged with Mahindra and Mahindra Limited. By merging, the companies aimed to synergize EV development, manufacturing, and sales. The companies aimed to promote the development of a wide range of three-wheeler and four-wheeler passenger and cargo vehicles which include the Alfa range of 3-wheelers, Mahindra Jeeto 4-wheeler, the Zor Grand electric, and electric Treo range.

To conclude, the increase in the demand for electric three-wheelers among e-commerce, pharma, FMGC, textiles, and other utility segments as last mile connectivity solutions is expected to fuel the growth of the industry in the ahead years. Moreover, the rise in concerns for governments and environmentalists to escalate global carbon emissions is expected to create extensive growth opportunities for the industry in the future.

To get more insights into the three-wheeler industry, feel free to talk to our industry analysts today! They can also help you identify potential investment opportunities across various regions.

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