The global low-speed electric vehicle (LSEV) market was valued at $35.2 billion in 2017, and it is expected to reach $68.0 billion by 2025, exhibiting a CAGR of 8.7% during 2018–2025. On the basis of product, two-wheeler was the largest category in 2017, and it is expected to remain the largest during the forecast period as well. Moreover, the category is also expected to witness the fastest growth in the coming years, owing to the growing adoption of electric two-wheelers in sharing services.
Increasing Penetration of Electric Three-Wheelers in APAC is a Major Trend in LSEV Market
Growing penetration of electric three-wheelers in the APAC region is a major trend witnessed in the LSEV market. The electric three-wheeler category comprises load carriers/cargo vehicles and passenger vehicles. In the past decade, CNG-based three-wheelers were introduced in the market as an alternative to conventional gasoline-based three-wheelers to control the rising air pollution levels. But in the last couple of years, the demand for electric three-wheelers has surged, owing to regional governments’ efforts toward the complete electrification of vehicles in public transport system. Adoption of these vehicles is increasing at a significant pace in APAC, with China leading the transformation in terms of manufacturing, export, and deployment.
Investment Toward Development and Expansion is Driving the Growth of the Market
Key players in the LSEV market are increasingly making investments for the development and production of improved and affordable three-wheelers. Investments are also being made to increase the production capacity to address the growing needs in the market through expansion of manufacturing facilities. At present, cost of an electric three-wheeler, even after subsidization, is more than that of a conventional fuel-based three-wheeler. Manufacturers in the market are therefore making efforts to bring down the cost of electric three-wheelers on par with that of gasoline-based three-wheelers. Thus, increasing number of investments is acting as a major growth driver for the market.
Segmentation Analysis of LSEV Market
Geographical Analysis of LSEV Market
Globally, APAC was the largest market for LSEVs during the historical period. Whereas, the LSEV market in Europe is expected to witness the fastest growth during the forecast period. This is attributed to the fact that several European Union (EU) member countries, such as France, Germany, and Spain, have subsidy schemes for the purchase of LSEVs, benefiting their sales. Technological developments in batteries, reducing cost of the vehicles, and changing social perception are further resulting in increasing sales of these vehicles in the region.
Competitive Landscape of LSEV Market
Some other players operating in the global LSEV market are Terra Motors Corporation, Zero Motorcycles Inc., Changzhou Yufeng Vehicle Co. Ltd., Jiangsu Kingbon Vehicle Co. Ltd., Hero Electric Vehicles Pvt. Ltd., Jiangsu East Yonsland Vehicle Manufacturing Co. Ltd., and ZHIDOU Electric Vehicle Co. Ltd.
In recent years, the LSEV market players have been involved in several strategic developments, such as geographic expansions and product launches, to increase its value in the market. For instance, in February 2018, Hero Electric Vehicles Pvt. Ltd. announced its plans to setup the second manufacturing facility in India by November 2018. The company has a manufacturing facility in Ludhiana (Punjab) in western India and now plans to set up the second manufacturing unit in southern India. Further, in November 2017, Yadea Technology Group Co. Ltd. launched a new electric scooter, C-Umi, at the VIETNAM CYCLE 2017, an international e-vehicle exhibition, held in Hanoi, Vietnam. Additionally, in October 2017, Zero Motorcycles Inc. announced the launch of its 2018 model line. The new range of motorcycles has an increased range and battery capacity, with six times faster charging capability, as compared to the earlier range.
Global LSEV Market Segmentation
Europe LSEV market
North America LSEV market