Piaggio sees electric 3W penetration hitting 50% by 2028 amid structural shift

Time of India

4 days ago

Piaggio Vehicles Pvt Ltd
(PVPL), the Indian arm of Italian auto major
Piaggio
Group, expects
L5 electric three-wheeler penetration
in India to reach 50 per cent by mid-2028. The company attributes this to a fundamental shift in the market, rather than temporary factors such as subsidies,
PTI
reports.
Despite the government's decision to slash incentives under the FAME scheme to one-fourth over the past 18 months, the segment has continued to grow. According to
Diego Graffy
, Chairman and Managing Director of PVPL, the momentum has not only held but accelerated, indicating a more permanent transformation. He believes that even in the absence of incentives, the structural change underway will drive adoption toward the 50 per cent mark over the next few years.
e3W market
The electric three-wheeler market is divided into two categories — L5 for passenger and cargo use, and L3 for smaller e-carts. While the government introduced the PM E-Drive Scheme with ₹10,900 crore in funding over two years after FAME Phase 2 ended in March 2024, industry players continue to seek clarity on long-term policy. Graffy said the lack of certainty on incentives can disrupt planning and urged the government to communicate clearly, even if it intends to end the subsidies.
Industry data shows that L5 passenger three-wheelers accounted for 22.8 per cent of total EV sales in FY25, while goods e-three-wheelers contributed 21.5 per cent. The penetration climbed further in Q1 FY26, with 32.4 per cent of EV sales coming from the passenger L5 segment and 22.8 per cent from the cargo category. Adoption remains lower in the southern and western parts of India, but Piaggio expects these regions to catch up in the coming years, further boosting the national penetration rate.
Piaggio's market ready product
According to Graffy, the market shift has been enabled by improved charging infrastructure, reduced acquisition costs, better servicing, and more accessible financing options. He said the company is keeping pace with the market's growth and has taken a measured approach to product upgrades, refreshing its electric three-wheeler lineup every two years since 2019.
Commenting on the launch of the new Ape E-City Ultra and upgraded Ape FX Maxx, priced at ₹3.80 lakh and ₹3.30 lakh respectively, Graffy said they deliver strong performance, low battery degradation, and minimal operating costs. He described the models as future-ready solutions designed for both cities and smaller towns, aimed at enhancing economic mobility and supporting a more inclusive, sustainable transport ecosystem.
Despite concerns around policy continuity, Piaggio remains confident in the long-term prospects of the electric three-wheeler space, backed by rising demand, product innovation, and the ongoing market transition.