India is largest buyer and exporter of three wheelers
Globally, India is the largest consumer and exporter of three wheelers, having registered growth in both domestic sales and exports in the last decade.
India exports three wheelers to Sri Lanka, Bangladesh, Egypt, Nigeria, Tanzania, Kenya, Ghana, Guatemala, Sudan, Botswana and Nepa. While not rampant, three wheelers market in India is faced with increased competition from light commercial vehicles (LCVs), Electric Rickshaws and Quadricycles, such as Bajaj RE.
TechSci Research on India’s three wheeler industry reveals growth here is projected to grow at a CAGR of over 5% through 2014-19. Need for economic and convenient public conveyance in India’s rural and semi urban areas coupled with increased number of permits issued by state governments is driving three wheeler market growth.
Growing number of CNG filling stations in semi urban and rural areas and introduction of new engine and fuel tech are likely to boost three wheeler market over the next 5 years here.
Passenger carrier three wheelers are used for public conveyance, and load carrier three wheelers for goods and materials over short and medium distances. Passenger carrier three wheelers exceeds that of load carriers in domestic, and export markets.
Max demand for three wheelers outside India comes from countries in Africa and South America. Passenger carrier segment accounted for majority of 3-wheeler exports in 2013. Need for public transportation, underdeveloped logistic infrastructure, low per capita income and unemployment contribute to more demand for three wheelers in African countries.
Resultantly, India-based three wheeler manufacturers are targeting African countries for exports. Growth within India is anticipated based on rural and semi urban regions in the next 5 years as per Karan Chechi, Research Director with TechSci Research.