India’s LPG Shortage Accelerates Electric Three-Wheeler Adoption

India’s April 2026 LPG shortage has disrupted last-mile connectivity, pushing drivers to embrace electric three-wheelers as a hedge against fuel volatility. 

Thousands of auto-rickshaw operators, especially in Bengaluru, have faced long queues and loss of daily income, with nearly 80 percent of LPG outlets closed due to West Asia supply disruptions. 

Drivers are reportedly losing half their earnings waiting four to five hours for refills, while electric auto operators continue working seamlessly at minimal running costs.

Structural Shift Toward EVs

The ongoing crisis has accelerated the shift from internal combustion engine (ICE) autos to electric vehicles (EVs). 

Electric three-wheelers are emerging as the preferred solution, offering running costs as low as 50 paise per kilometre. 

Government initiatives like FAME-III incentives and green loans further support EV adoption, making 2026 a turning point for India’s last-mile mobility.

TVS Motors Leads the Charge

TVS Motor Company continues to dominate the three-wheeler market, with the iconic TVS King brand now fully embracing electric vehicles. 

The King EV MAX passenger rickshaw boasts a 179 km certified range with an 11 kW motor, while the King Kargo HD EV provides rapid three-hour charging for logistics operations with a 6.6-foot load deck.

In March 2026, TVS Motor recorded total sales of 519,358 units, up 25 percent from 414,687 units in March 2025. Three-wheeler sales grew 46 percent, and EV segment sales surged 44 percent, reflecting rising demand amid the LPG crisis.

Bajaj Auto Expands EV Portfolio

Bajaj Auto Ltd has strengthened its position in the EV market with high-performance vehicles like the RE E-TEC 9.0 and Maxima XL Cargo E-TEC 12.0. The passenger EV offers a 178 km range with an 8.9 kWh IP67-rated battery, while the Maxima XL Cargo supports logistics with a 183 km range and 500 kg payload capacity.

Bajaj Auto reported a 20 percent growth in total sales for March 2026, reaching 445,377 units compared to 369,823 units in March 2025. Commercial vehicle sales mirrored this growth, underlining the demand for EVs in urban transport and logistics.

Atul Auto and Montra Electric Push High-Performance EVs

Atul Auto Ltd, via its subsidiary Atul Greentech, continues to serve both low-speed (L3) and high-speed (L5) e-rickshaw segments. 

Meanwhile, Montra Electric (under Tube Investments) focuses on high-performance L5 vehicles, targeting both passenger and cargo operations. These companies are well-positioned to benefit from the ongoing shift toward electric last-mile mobility in India.

The Road Ahead

Analysts believe that the 2026 LPG crisis has highlighted the fragility of fuel-dependent transport and accelerated India’s move toward sustainable alternatives. 

With strong government support, rising consumer awareness, and proven cost advantages, electric three-wheelers are likely to dominate urban and semi-urban transport markets in the near future.