Murugappa Group to enter India's fast-growing electric 3W market
Published On Jul 12, 2022
The Chennai headquarter conglomerate eyes a pie of the booming last-mile, affordable 3W market which has surpassed the conventional vehicles in sales with a big headroom for growth.
Intensifying the already heated all-electric 3W market in India, the diversified Murugappa Group has announced plans to enter this growing market taking on established players including Mahindra, Piaggio and start-ups like Euler Motors, Altigreen, OMEGA SEIKI MOBILITY among others.
With the global auto sector making a rapid shift towards electric vehicles, India isn’t immune to this transition. However, unlike the developed world where personal vehicles are taking the EV route, here the last-mile public transport is becoming the first adopter of EVs.
Related: India’s e-rickshaw market is booming
Demand for last-mile, affordable electric three-wheelers has shot up considerably and is gradually taking over the conventional vehicles in sales. This presents an enormous opportunity for brands to introduce value for money, compelling electric vehicles that provide an alternative to IC engine-powered vehicles which are getting expensive to run, thus eroding the potential earning power of the buyers. Whereas the battery-operated vehicle offers the benefits of ease of driving, lower operating cost per km, incentives from the government and zero-emission/greener vehicles.
The three-wheeled electric vehicle market in India is crowded with several brands enticing customers with a range of vehicles in the segment. Yet, not a single player emerged as the winner which offer a window for new players.
Murugappa Group is betting big on this new emerging vehicle segment in the auto sector with a potential for exponential growth over the next 5 years. The group has established a new firm TI Electric under the Group company Tube Investments of India (TII) which makes bi-cycles in India.
The new range of electric three-wheeler is likely to cater to the passenger and cargo carrier segment, branded as Montra. The group has earmarked sizable investment towards this new business segment with an expected commercial launch in the next 3-4 months.