Legacy Automakers Accelerate into India's Electric Three-Wheeler Boom

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  Automotive and Transportation on Sat, Nov 15th, 2025 by The Financial Express

Legacy Automakers Accelerate into India’s Electric Three‑Wheeler Boom

The electric three‑wheeler (e‑3W) market in India is no longer a niche niche. With a projected annual sales volume of over 4 lakh units by 2026, the sector has become a focal point for both start‑ups and established OEMs. While players such as Ola Electric, Ather Energy, and Piaggio have set the pace, a wave of legacy automakers is now racing to secure a share of this rapidly expanding market. The Financial Express piece “Legacy brands make fast moves in e‑3W market” chronicles how giants like Mahindra & Mahindra, Tata Motors, Bajaj Auto, and Hero MotoCorp are reshaping their product lines and manufacturing footprints to capture the e‑3W boom.

1. The E‑3W Landscape in India

The 3‑wheeler market is traditionally dominated by three‑wheelers that run on compressed natural gas (CNG) or diesel. In recent years, the government’s Faster Adoption of Mobility in Electric (FAME‑III) scheme has accelerated the transition to electric variants, offering up to ₹15,000 in subsidies for purchase and charging infrastructure. The result is a staggering compound annual growth rate (CAGR) of 12‑15 % in e‑3W sales, reaching roughly 1.7 lakh units in 2022.

The sector’s appeal lies in its low operating cost and high deployment density—especially in urban and semi‑urban corridors where delivery, transport, and last‑mile logistics dominate. In addition, the regulatory push to phase out all conventional auto‑rickshaws by 2030 makes the e‑3W market a natural target for OEMs looking to diversify.

2. Why Legacy Brands Are Jumping In

Legacy automakers bring to the table vast manufacturing expertise, supply‑chain reach, and brand equity—all essential for scaling EV production. Several strategic reasons explain the urgency:

Mahindra, for example, has announced an e‑3W platform that will be manufactured at its Nagpur plant, leveraging its experience in light‑weight aluminum chassis.

3. Key Players and Their Moves

A number of legacy brands are leveraging existing 3‑W production lines to produce both dual‑fuel and full‑electric variants simultaneously, ensuring a smoother transition.

4. Strategic Partnerships and Ecosystem Building

While the core vehicles are under development, the ecosystem is equally important. The article highlights that many legacy OEMs are forging alliances with:

• Battery manufacturers (LG Chem, BYD, Olympe) for cost‑effective, high‑capacity cells.
• Charging infrastructure firms (Airtel, Tata Power, State Grid) to set up public and private charging stations.
• Software providers (Bosch, Magna) for connected‑vehicle platforms that enable over‑the‑air updates, fleet management, and real‑time diagnostics.

For instance, Mahindra’s collaboration with LG Chem is set to deliver 1‑kWh battery packs at ₹10,000 per kWh, cutting cost parity with conventional 3‑wheelers.

5. Challenges on the Road Ahead

Despite the momentum, several hurdles remain:

1. Battery Cost & Supply – The high cost of lithium‑ion cells and raw material volatility could push up vehicle prices.
2. Charging Infrastructure – The limited number of fast‑charging stations, especially in Tier‑2 cities, hampers user convenience.
3. Regulatory Complexity – Different states have varying subsidy schemes and certification norms that can delay market entry.
4. Technological Lag – Legacy OEMs may face skill gaps in EV software and battery management systems.

The article quotes a senior executive from Tata Motors who says, “We are not just building a vehicle; we are building an entire ecosystem that supports a sustainable future.”

6. The Road Map for Legacy Brands

The Financial Express piece outlines a phased roadmap that legacy OEMs are adopting:

• Phase 1 – Pilot & Validation (2023–2024): Small‑batch production, targeted pilots in Delhi, Bengaluru, and Mumbai to gather data on range, charging times, and fleet performance.
• Phase 2 – Scale‑Up (2025–2026): Expand production to 100,000 units per annum, establish dedicated 3‑W EV plants, and roll out a nationwide charging network.
• Phase 3 – Market Leadership (2027+): Target a 20 % share of the e‑3W market, with plans for plug‑in hybrid variants as a transition bridge.

7. Conclusion

The electric three‑wheeler market in India is evolving from a niche niche to a high‑velocity battleground. Legacy automakers are moving decisively, leveraging their manufacturing muscle, supply‑chain depth, and brand heritage to capture a share of what could become a ₹10 trn industry. While the path is fraught with technical and regulatory challenges, the collective push—from Mahindra’s e‑3W launch to Tata’s partnership with Olympe—signals that the electric future of India's streets is no longer a distant dream but a tangible reality. As the government’s clean‑mobility agenda intensifies, legacy brands that can combine speed of production with innovation in technology will likely emerge as the leaders in the next wave of urban transport.