TVS Motor Company is hinting at broader ambitions in India’s electric mobility sector following the launch of its first electric cargo three-wheeler, the King Kargo HD EV. Speaking at the launch event, Executive Vice President Rajat Gupta emphasized that TVS is keeping all options open in the electric three-wheeler market. He added, “We expect that by 2030, 60% of the three-wheeler market will consist of electric vehicles,” leaving room for potential expansion into e-rickshaws.
India’s Rapidly Electrifying Three-Wheeler Market
The three-wheeler market in India is electrifying at an unprecedented pace. In the fiscal year 2025, electric L5 vehicles accounted for 160,000 of the 720,000 units sold, pushing EV penetration to 23%. Passenger models dominated this segment, though cargo adoption is rapidly growing.
When including L3 e-rickshaws, penetration surpasses 50%, with around 700,000 units registered last year, making India the largest electric three-wheeler market globally.
Opportunities in the E-Rickshaw Segment
The e-rickshaw segment, currently led by Mahindra and with Bajaj Auto preparing to scale aggressively, remains highly fragmented and informal. Analysts suggest that a player like TVS could bring structure and professionalism to the market through:
Structured financing and leasing models
Expanded after-sales networks
Higher-quality vehicles
TVS is reportedly in talks with fleet operators and exploring leasing options for both passenger and cargo EVs, aiming to reduce upfront costs and decrease reliance on informal credit systems.
Focus on Cargo EVs and Last-Mile Logistics
TVS’s initial focus will be on cargo EVs, particularly for last-mile delivery in tier-2 and tier-3 cities, driven by the growth of e-commerce. Government policies, such as the PM E-Drive scheme (₹2,500 per kWh, capped at ₹25,000 per vehicle) and the PLI Auto scheme, provide key incentives for organised L5 EVs, including the King Kargo HD EV. However, many smaller L3 e-rickshaws do not qualify due to limited battery sizes and speeds.
Gupta highlighted that the King Kargo HD EV complies with both incentive schemes, giving TVS a competitive edge as subsidies begin to phase out, which could accelerate market consolidation and challenge smaller assemblers.
Competitive Landscape and Future Plans
Currently, Mahindra Last Mile Mobility and Bajaj Auto lead the L5 segment. Other players like Piaggio, Atul Auto, Omega Seiki, Euler, and Montra are rapidly scaling. As a newcomer, TVS is positioning itself to compete in both passenger and cargo EV segments, while keeping e-rickshaws under consideration for future expansion.
With pilot programs also being tested internationally, TVS aims to become a major contender in India’s electric three-wheeler transition, signaling ambitions that go far beyond a single product launch.
