Rising Penetration of L5 Passenger E3Ws in India’s Urban Transport

Electric three-wheelers (E3Ws) have become a vital part of India’s urban transportation landscape, especially for last-mile passenger connectivity in tier 2 and tier 3 cities, where they offer affordable, efficient, and eco-friendly mobility solutions. Among these, the L5 passenger category, which refers to more powerful and larger E3W-passenger, is emerging as a game-changer in making urban mobility cleaner, more affordable, and efficient. The growing focus on electrification is transforming this segment rapidly.

India’s L5 electric three-wheeler (E3W) passenger segment is rapidly shifting from traditional internal combustion engine (ICE) vehicles to electric models. Between FY2023 and FY2025, the segment grew at a CAGR of 193.6%, This transition is fueled by:

  • Cost Efficiency & Lower Total Cost of Ownership (TCO): Although electric three-wheelers have a higher upfront cost, they offer significant savings in the long run. Higher the running kms, lower is the cost per kilometer—around INR 0.50–0.70/km compared to INR 3–4/km for ICE vehicles. This means operators spend less on fuel and maintenance, recovering their initial investment within 12–18 months when used 8–12 hours daily.
  • Growing Urban Mobility Demand & Fleet Electrification: The increasing need for clean, affordable transport in growing cities is driving demand. Fleet operators, including companies like Uber and Rapido, are actively adopting electric autos, fueling institutional demand and helping scale electric mobility.

Figure 1: L5 E3W-Passenger Sales trend and Penetration (FY2023-FY2025)

Source: Vahan Dashboard, JMK Research

To truly grasp the surge in the electric L5 segment, it’s important to understand how OEMs are innovating to meet India’s unique market needs. They are engineering L5 E3Ws specifically for Indian road conditions, prioritizing durability, extended range, and minimizing downtime. With enhanced warranties and improved charging infrastructure, these offerings provide operators with greater reliability and convenience. Below is a snapshot of key OEMs and how their products are tailored to drive the growth of this segment.

Table 1: Product details of Leading OEM’s in L5 E3W passenger segment

Source: Company website, JMK Research

On analyzing the sales trend of these leading OEM’s in this segment, it is observed:

  • In FY2025, Mahindra Last Mile Mobility led the L5 electric three-wheeler segment with 52,246 units sold, with over 90% of its L5 sales being electric vehicles. Their strong after-sales support and accessible financing options have significantly boosted EV adoption, especially among solo operators and small fleet buyers.
  • Legacy automakers Bajaj Auto and TVS Motor are steadily expanding their presence in the electric L5 passenger three-wheeler segment. Bajaj, having entered in FY2024, sold 46,118 units in FY2025 with a notable 12% EV penetration, reflecting strong consumer trust and swift market capture. TVS Motor, which joined the segment in January 2025, recorded 1,696 units with 7% penetration, marking a promising entry and signaling long-term growth ambitions in the electric mobility space.
  • Piaggio continues to maintain a presence in the EV market but still relies heavily on internal combustion engine models, indicating a slower approach to electrification.
  • Omega Seiki Mobility (OSM) stands out through innovative offerings such as swappable battery solutions and social initiatives like the “Pink Auto Rickshaws,” which focus on empowering women drivers and enhancing convenience for operators.

Looking ahead, the trajectory of L5 electric passenger three-wheelers will increasingly be shaped by policy support from states, innovations in battery technology, financing models tailored for middle-income buyers, and the scaling of charging infrastructure and battery swapping stations.

On the policy front, Delhi is taking bold steps in its draft EV Policy 2.0, which proposes phasing out CNG auto-rickshaws by halting the issuance and renewal of their permits—reserving all future permits exclusively for electric autos. Such initiatives could spark a transformative shift in Delhi’s public transport system, driving the widespread adoption of cleaner and more sustainable mobility solutions. Clearly, the collaboration between policymakers, OEMs and EV financing companies, will be essential in unlocking the full potential of this segment, establishing it as a cornerstone of India’s sustainable urban transport ecosystem.