TVS Motor Company on Monday said electric vehicles will account for 60% of heavy threewheeler sales by the end of the decade. The firm has entered the electric threewheeler cargo space with the launch of the TVS King Kargo HD EV, aimed at urban and semiurban logistics.
Initially, the TVS King Kargo HD EV will be available in select markets, including Delhi, the National Capital Region (NCR) — covering Faridabad, Noida, Gurgaon, and Ghaziabad — as well as parts of Rajasthan and Bengaluru. The exshowroom price in Delhi is set at ₹3.85 lakh. TVS also showed its upcoming King Kargo HD CNG variant, which the company plans to introduce before the end of 2025.
“The overall market will continue to grow. We expect 60% of the market to be electric by 2030. The passenger threewheeler segment is expanding faster, while cargo growth will hinge on logistics demand,” said Rajat Gupta, business head for commercial mobility at TVS Motor.
In FY25, around 1.6 lakh electric L5 threewheelers were sold, out of an estimated 7.2 lakh total threewheelers, with passenger vehicles contributing over 80%. EV penetration stood at about 23% for both passenger and cargo categories.
Electric threewheelers have emerged as a key mode of urban mobility, particularly in tier2 and tier3 cities, offering affordable and ecofriendly lastmile connectivity. India remains the world’s largest market for electric threewheelers, including L3 models, with the segment witnessing the fastest EV adoption.
Mahindra Last Mile Mobility and Bajaj Auto lead the electric L5 market. TVS entered the segment with the King EV Max passenger vehicle in January, joining rivals Piaggio, Montara, Omega Seiki, Atul Auto and Euler.
So far, government incentives under the PM EDrive scheme and the productionlinked incentive (PLI) scheme have played a crucial role in driving sales. At present, electric threewheelers receive a subsidy of upto ₹25,000 per vehicle. The incentive is expected to be phased out by the end of this financial year.
While the total cost of ownership of EVs is lower, high upfront cost remains a deterrent.
“The market at present depends on subsidy. When it is phased out, everyone will be geared up for that,” Gupta said.
Meanwhile, traditional OEMs are eyeing the L3 category, comprising lowspeed erickshaws and ecarts that dominate lastmile connectivity. This segment remains largely unorganised, though Mahindra has entered and Bajaj is expected to launch its first model this quarter.
