APAC three wheeler market is anticipated to account highest CAGR during the forecast period
According to the new research report published by The Insight Partners, titled “Three Wheeler Market - Global Analysis and Forecast to 2027”, the global three wheeler market is expected to reach US$ 13.73 Bn by 2027, registering a CAGR of 4.9% during the forecast period 2019-2027.
The Asia Pacific is expected to be the region experiencing ample of opportunities for the automotive manufacturers of three-wheeler vehicle. The Asia Pacific has several growing economies, which is leading the growth of a wide variety of sectors, which includes manufacturing, technology, retail, and others. Many emerging economies in the APAC region are developing economies and therefore attracting investment from regulatory bodies of these countries to bring enhancement in their technologies. The international automotive manufacturers has a considerable opportunity to expand as well as invest in developing economies. This would eventually propel the growth and adoption of three-wheeler in these economies. Many emerging economies in the APAC region are considered to be developing economies and therefore attracting investment from the regulatory bodies of these countries to bring enhancement in their technologies. The three-wheeler market is witnessing massive growth in the developing countries of this, especially in India. APAC market for three-wheeler includes the market of South Korea, India, China, Japan, Australia, and the Rest of APAC.
The massive populations of China and India and the mounting middle-class population in these countries, as well as booming automotive sector scenarios in both countries, are anticipated to have a bright future for the adoption of three-wheeler vehicles. These countries are the hub for various local automakers, which are focusing on the development of a three-wheeler vehicle, most commonly known as auto-rickshaw/ tuk-tuk. Furthermore, China is the largest producer of passenger cars across the globe; also, India, Japan, and South Korea are some of the primary vehicle manufacturing countries. The continuous economic growth in developed and developing countries such as India and China, coupled with the presence of a high number of manufacturers in countries such as China and Japan, has facilitated the rapid growth of the automotive industry in this region. APAC is one of the rapidly growing passenger car markets, with Chinese brands accounting for 99% of EV production in the country in 2018. China has already seen massive growth in electric vehicle production as well as sales in the country, and the automaker in the country are concentrating on the manufacturing of EV three-wheeler market. Similarly, it has been noted that the adoption rate of e-rickshaw and e- scooters are relatively high as compared to other countries globally.
Some of the major three wheeler vehicle manufacturer present in the region are ATUL Auto Limited, Piaggio & C. SpA, Bajaj Auto Ltd., J.S. Auto (P) Ltd., Speego Vehicles Co Pvt Limited, and Mahindra & Mahindra Ltd.
Key findings of the study:
The key players in the market are focusing on investing in the production of three wheelers in African and South American countries. There have been prominent strategies made in recent years by automakers to increase the usage of three wheelers in these regions. For instance, in August 2016, Lohia Auto Industries entered Africa with three wheeler operated on diesel. Also, in May 2017, TVS Motor Company Ltd. shipped three-wheeler of its brand TVS King DLX to Central America. With this company aimed to make the region its sales target. Furthermore, Piaggio & C. SpA expanded and strengthened its operations in Mexico by marketing the Ape, its three-wheel vehicle.
A reduction in organized public transport systems has led to rapid growth in non-conventional means of public transport, initially provided by minibuses and shared taxi/vans, and more recently by commercial three-wheelers. Unlike cities in South and East Asia, ownership and use of motorized and electric three-wheelers as a personalized vehicle is extremely small in sub-Saharan cities. However, over the past decade, there has been significant growth in the use of three wheelers as a commercial, public transport mode.
Also, Tugende, in Uganda and Kiva in Kenya are the non-profit organization that took the initiative to offer access to credit for people wanting to own their own motorcycle taxis via a hire purchase scheme. With a schedule of affordable down-payments, Boda Boda operators contribute a portion of their income and are able to purchase their three-wheelers within two years. The three-wheeler offered by Tugende is fitted with tracking software to manage the risk of supplying credit to applicants.
In 2018, 900 beneficiaries of the Tugende organization paid the entire cost of their vehicles. Initiatives such as this have the potential to favorably alter the uptake of a motorcycle taxi and three-wheeler transport services by women, particularly if they proactively target women as potential beneficiaries. Thus, the adoption of three-wheelers is increasing in South America and Africa region.
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