Leading the charge – Electric three-wheelers set the pace for sustainable mobility in India
A silent revolution is reshaping India’s last-mile mobility – the electrification of three-wheelers. In the L5 category, electric autos are driving one of the fastest EV transitions in the world. As per the International Energy Agency (IEA)’s Global EV Outlook 2025, India is already the largest e-3W market and is uniquely positioned to deliver complete category electrification in the years to come.
This transition is notable not just in its scale and speed – going from 8% in FY23 to 32% in YTD FY26. It is also significant that it has been driven in the customer segment with the lowest affordability entirely on the basis of the total cost of ownership. Experts believe that the category can reach 50% of electrification in the next 4-5 years.
Policies – a powerful catalyst
India’s EV success is anchored in the decisive and supportive policies by the Government of India. The policies have provided long-term stability and confidence for industry and customers.
• Landmark initiatives like Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) I & II and PM e-Drive have enabled demand creation by bridging the upfront price gap. The recent scheme has expanded its scope to include roll out of the charging infrastructure which will further the rapid adoption of the technology.
For manufacturers, the Production Linked Incentive (PLI) scheme for both automotive and advanced chemistry cells (ACC) are deepening the manufacturing base, enabling local R&D and supply chain creation going beyond Tier 1 to Tier 2 and Tier 3 ecosystem providers. This thoughtfully designed scheme has ensured that India is now set on a path where we can move towards global competitiveness through domestic value addition.
• One of the big levers enabling sustainable mobility is the GST advantage offered to electric vehicles. In the recently introduced Next Gen GST Reforms – a continued flat 5% GST is levied on EVs. The government has ensured that customer sentiment remains buoyant and encourages adoption of new technology. Electric three-wheelers not only promote clean mobility but also are the tools of empowerment and entrepreneurship. More and more women drivers are coming forward and participating in this electric revolution – e-3Ws offer a smoother as well as easier driving experience with no clutch or gears. As one of our women customers from Indore, Devkanya Pande, says, “I’ve an 80% leg impairment that restricts my mobility. Driving the Mahindra Treo has transformed my life. Now, I provide for my children and household.”
Lakhs of drivers and fleet owners feel the change with lower operating costs that translate into higher daily earnings and renewed financial freedom. E-3Ws offer ~30% lower operating costs compared to CNG vehicles, making them a more affordable choice. This, along with the convenience of charging the 3W EV at home using a simple 16A socket, adds to the earning potential.
Furthering India’s green goals
The environmental dividends are equally compelling. Mahindra Last Mile Mobility’s electric three-wheelers have cumulatively saved more than 185 kilo metric tonnes of carbon dioxide emissions – equivalent to planting more than 4.3 million trees, covered in excess of 5 billion kilometres and demonstrating how industry-led innovation and climate action can go hand-in-hand.
The electric three-wheeler success story, in fact, offers a strong template for decarbonising the road transport sector. It proves that electrification at scale is possible.
The Road Ahead
India’s electric three-wheeler journey has reached remarkable milestones, yet there are several challenges and opportunities ahead. The metro cities are lagging in adoption – less than 5% adoption – due to lack of parking and charging infrastructure in the context of urban development. The solution is a concerted effort and support of state and municipal authorities along with industry participation.
We remain optimistic that with forward looking government policies, robust industry participation, and the aspirations of millions of micro-entrepreneurial citizens, this transformation is not just inevitable, it is unstoppable.
Writer : Ms. Suman Mishra (Managing Director and CEO, Mahindra Last Mile Mobility Limited)
