India’s Electric Three-Wheeler Market Set to Cross 60% Penetration by 2030, Says Mahindra LMM CEO

India’s electric three-wheeler segment has become the most electrified part of the country’s automotive industry. It is poised to cross 60 per cent market penetration by 2030, according to Suman Mishra, Managing Director and CEO of Mahindra Last Mile Mobility (LMM).

Speaking to ET Auto, Mishra highlighted the remarkable pace of growth the segment has witnessed in just a few years. “Electric three-wheelers were around six per cent of total sales in FY23. Today, we’re close to 30 per cent. This is phenomenal progress in such a short time. The segment has achieved critical mass and could reach 50 to 60 per cent penetration within the next five years,” she said.

Mishra was speaking ahead of the ETAuto EV Conclave 2025, scheduled for December 11 at the Hyatt Regency, New Delhi, which will bring together industry leaders and policymakers to discuss the future of electric mobility.

The overall Indian EV market, valued at USD 28 billion in 2023, is projected to grow to USD 110.09 billion by 2025. By 2030, annual EV sales are expected to touch 10 million units, driven by improving infrastructure, technological advancements, and growing consumer confidence.

While the three-wheeler segment shows rapid progress, Mishra acknowledged two key hurdles to full electrification — charging infrastructure and public awareness. “In metro cities, the main constraints are parking and charging availability. In smaller towns, awareness remains low. Many still don’t realise that electric vehicles offer the torque and load-carrying capacity they need for their businesses,” she explained.

Despite these challenges, customer response has been overwhelmingly positive. Mishra noted that drivers quickly recognise the financial benefits of switching to electric mobility. “Many tell us that the savings from using EVs have helped them fund their children’s education or improve their family’s living conditions. Their motivation comes from real, daily savings rather than advertisements,” she said.

Word of mouth and social media have been more influential in this space than traditional marketing, she added, as users share their positive experiences directly with peers.

Discussing the cargo segment, Mishra pointed out that last year’s surge in demand came primarily from e-commerce and logistics players. However, this growth has stabilised as metropolitan areas increasingly rely on electric two-wheelers for quick-commerce deliveries. “The next wave of growth will come from small businesses — bakeries, dairies, and shopkeepers — adopting EVs for their own logistics. That’s where we’re focusing our efforts now,” she added.

Mahindra Last Mile Mobility has already deployed 2.7 lakh electric vehicles across India, with the most recent addition of one lakh units in just 15 months. The company’s L5 EV category has recorded over 50 per cent growth year-to-date, and Mishra expects this momentum to continue.

“When you truly understand your customer, build the right product, and make it affordable, the electrification journey becomes natural,” she said.