TVS’s EV three-wheelers are significantly more cost-effective in terms of total ownership compared to CNG and petrol models, allowing owners to save INR 30,000 to 40,000 annually despite a slightly higher initial cost of INR 2.95 lakh, says . Rajat Gupta, Business Head Commercial Mobility, of TVS Motors Company. This makes EV three-wheelers increasingly attractive to fleet owners and individual buyers in India, Gupta Added. Additionally, the adoption rate of EV three-wheelers in the passenger segment has reached 27% of the Indian three-wheeler market, with expectations of rapid growth due to government support, green mobility incentives, and reduced operating costs. This signifies a transformational shift in India’s three-wheeler market toward electric vehicles.
Rajat Gupta speaks exclusively to Buzzplus on the future of EV three wheeler market of India.
Question: Why should owners of petrol vehicles, CNG vehicles buy TVS EVs.
Answer: The thing is that in this vehicle total cost of ownership is very low compared to CNG or petrol vehicle. If this vehicle (EV three wheeler) runs for one year for in the same range – what they do in CNG and petrol, an owner will be able to save at least 30 to 40,000 rupees a year. So, that is why this is the reason. And second biggest reason is government is promoting adoption of EV vehicle because of zero emission. So, green mobility they are promoting and there is no noise pollution and it is easy to ride.
Question: What is the total 3 wheeler market in India and what do you think is the future for 3 wheeler EVs?
Answer: All put together all type of segment Indian 3 wheeler market is about 54 to 55,000 units per month – which includes passenger and cargo. The market is growing at the CAGR of 7 to 8%. However, this passenger segment EV three wheeler adoption is now 27% and it is expected to grow very fast.
Question: How much of this is conversion rate from petrol or CNG three wheeler to EV and how much of it is organic?
Answer: So, I think it is about 50-50 I would say.
Question: TVS is very active in the African market. Do you see you also getting there with the 3 wheelers – what are your plans for those markets?
Answer: So, Africa is a very important and big market even for 3 wheeler also. This is a global product. In Africa there are some issues in the market there as of now, which is due to government issues and that has nothing to do with TVS motor. But TVS Motors has got a significant position there and the African market will improve in the fourth quarter of 2024-25.
Question: Are you looking forward to the export market for this EV three wheeler also apart from India?
Answer: This product is a global product. As of now we are focusing on India because EV adoption in India is fastest as and when the other market opens up we have plans.
Question: Can you give me a price comparison of existing EV and petrol models of 3 wheelers from TVS?
Answer: CNG and petrol three wheeler models roughly cost about INR 2,50,000 to INR 2,60,000. This EV model is INR 2,95,000. So, it is 35,000 pricier. But as I said that in total cost of ownership – annual saving will be much more.
Question: How important is fleet customers?
Answer: Fleet owner are increasing because of EV so that is one of the as I shown three
type of customer. So fleet owner is very important part of it like fleet companies which are coming they are buying this vehicle as a fleet and they are also eventually getting subsidy. So fleet owner are equally important for us.
Question So current owners with two or three vehicles would be shifting to becoming a fleet using the app that you are offering?
Answer: Yes of course there will be a shift. There ae many who are unable to buy a three wheeler but are hired instead to drive. Hence EV three wheeler fleets are expected to increase.
Question: Will there be any financial incentives for fleet operators?
Answer: That will depend on dealers, and as and when fleet companies discuss – it is deal that will be finalised on a case to case basis. Our price of this EV three wheeler itself is highly competitive, I do not think there will be any room for more negotiations in pricing.
Question: What about charging stations?
Answer: Charging point setting up is a joint responsibility. See if you expect that OE (Original Equipment) maker should open charging stations – it is not going to happen. It is with the government help as well as the various start-ups which are coming up. They are trying to open – a number of charging start-ups are in touch. They would like to support for their (Charging) network.
Key Takeaways
Rajat Gupta seems very optimistic of the promising future of EV three-wheelers in India, driven by their cost-effectiveness, environmental benefits, and growing market demand. With an annual cost-saving of INR 30,000–40,000 for owners and a 27% market adoption rate in the passenger segment, EV three-wheelers are expected to rapidly become a preferred choice for fleet operators and individual buyers. TVS sees significant opportunities in the Indian market, supported by government incentives for green mobility and collaboration with startups to enhance charging infrastructure. While exports are part of the long-term strategy, the primary focus remains on India’s fast-growing EV adoption. This transformation positions EVs as a crucial driver of sustainable mobility in the three-wheeler segment.
