We Might Have More Electric Three-Wheelers In India Before Personal Electric Cars, Here Is Why

Many of us eyeball the electric car launches taking place in the Indian automobile market with an increasing frequency. But the electric vehicle revolution in India is being spearheaded by a different category altogether and Mahindra and Mahindra (M&M) now plans to double down on that.

Mahindra is coming up with a new strategy to focus on the sales of electric three-wheelers in India. In case you wonder why, know that the electric three-wheelers are the fastest growing EV segment in the country. Back in July 2019, the sale of electric three-wheelers in India surpassed their IC engine counterparts.

Being aware of the increasing adoption in the segment, it is only natural that Mahindra wants to capture the market going forward. India¡¯s leading electric vehicle manufacturer by volumes, Mahindra will be focusing ¡°aggressively¡± on electric three-wheelers, confirms a new report by Mint.

Mahindra Treo Electric (Image: Mahindra Electric)

To put a number to these efforts, M&M¡¯s EV subsidiary Mahindra Electric Mobilty Ltd. has set a target of selling 10,000 units of electric three-wheelers per month as per the report. The firm has been in touch with different state governments and private entities for the sale of these zero-emission vehicles, the report cites two people close to the matter.

The segment is also being propelled by the Indian government under its FAME scheme. A budget of Rs 525 crore has been earmarked for supporting the sales of 5 lakh units of electric three-wheelers by 2022.

Why the shift from electric cars?

M&M understands that the adoption of personal electric cars in India is still in the distant future. Even for its electric cars, the company has adopted business strategies focussing on the corporate sector and government tie-ups. Mahindra¡¯s partnership with various government departments as well as Lithium - an electric cab aggregator for corporates, and SmartE - a ride sharing platform for last-mile trips. is a proof of that.

The high cost of electric cars at present is the deterrent for an increased adoption of EVs for personal mobility. An easier transition, however, can be seen in shared mobility options - four wheelers and three-wheelers alike. But since the EV charging infrastructure is not as widespread as needed, electric four wheelers still face a major roadblock.

Mahindra Treo Electric (Image: Mahindra Electric)

Electric three-wheelers, in comparison, are much easier to adopt. Partly because of the lower investment required in their production. Another strong reason is the embedded battery swapping technology that requires no recharging time and instead allows an easy swap of drained out batteries with fresh ones. Battery swapping stations are also coming up in various parts of the country to enable this at a larger scale.

Mahindra seems to have a good grasp of the situation. Being involved in almost all aspects of the electric three-wheeler market, the auto OEM is now pushing its strands even further.

It launched its electric three-wheeler range - Treo, in 2018 that uses its home grown powertrain and lithium ion battery. That same year, Mahindra Electric Mobility opened up a Rs 100 crore manufacturing plant in Bengaluru, increasing its total manufacturing capacity to 25,000 EV units per annum.

Now that the company is already in the process of supplying these EVs to various aggregators, it is easy to see why the firm might be attracted to the idea of expanding its presence in the segment. Going forward, we can expect the strategy to work in its favour, and reach the larger goal of an increased zero-emission transport in India.