The global electric vehicle (EV) market is still emerging. Electric two-wheelers (2Ws) and three-wheelers (3Ws) remain the most electrified road transport sectors. More than 9% of the world’s 2/3W fleet was electric in 2024 (with over 75 million bikes and scooters) and sales of electric 2/3Ws approached 10 million units globally in 2024 (about 15% of total 2/3W sales).
Despite challenges in leading markets like China, the sector shows steady growth across India, Southeast Asia, and Africa, thanks to affordability, evolving policy frameworks, and infrastructure developments.
This article explores how electric 2Ws and 3Ws are reshaping urban mobility and supply chains in key regions while identifying how India is emerging as the nerve center of this transformation.
The Resilience of the Electric Two- and Three-Wheeler Market
Electric 2/3Ws continue to outperform all other electric vehicle segments in terms of affordability and market penetration. Unlike electric cars, most 2/3W models do not require dedicated charging infrastructure, thanks to removable batteries. Gig workers, delivery services, and other urban commuters are using these vehicles more frequently than ever before (with recharging). Battery swapping, as a fast and convenient way to keep EVs operational, especially in 3W commercial markets, is gaining traction.
Electric 2/3Ws are the first economical introduction into the electric mobility ecosystem globally, and especially in emerging economies. This trend is essential for countries where 2/3Ws dominate personal and commercial transport—such as India and Southeast Asian nations.
China: From Global Leader to Regional Exporter
China, long the dominant force in the electric 2W segment, has seen a dip in 2024 electric scooter sales. This decline is in line with the overall drop in the domestic 2W market. At 7 million electric 2W sales, more than half of the world’s sales, China still dominates the global market, but urban tastes are shifting to high-end motorbikes and electric. Furthermore, new purchases have been constrained by 2Ws laws tightening in major cities.
Chinese OEMs are focusing on exporting to maintain their growth. Yadea, a leading manufacturer, has begun construction on a $150 million assembling facility in Indonesia with a plan to produce 3 million vehicles per year by 2028. Also, Chinese enterprises now have operations in Vietnam, the Philippines, and Thailand, and are often among the top five brands in those markets.
India: The Fastest-Growing Hub for Electric 2/3Ws
India is currently the most dynamic electric two-wheeler market, recording sales of 1.3 million electric 2Ws in 2024—a 6% share of the overall 2W market. The four leading manufacturers contribute to 80% of total sales, yet the number of OEMs in the country has expanded from 180 in 2023 to more than 220 today.
Although electric 2Ws initial costs are higher than ICE vehicles, Indian OEMs are always launching more affordable choices. Ola’s S1X, equipped with a 2 kWh battery and 6 kW peak power, is priced around ₹70,000—cheaper than the average ICE two-wheeler.
Government policy support has been vital. Purchase incentives of ₹5,000/kWh for electric 2Ws with lithium-ion batteries remain available under PM E-DRIVE scheme. With overall budget of $1.3 billion, this program intends to support 2.5 million electric 2Ws by 2026. PM E-DRIVE is the successor program to both FAME-II and Electric Mobility Promotion Scheme.
India also represents the leader of electric 3W use, with sales exceeding one million units in 2024, up 10% year-on-year, and constituting a quarter of the 3W market. The global market is highly concentrated between China and India, where they collectively account for more than 90% of ICE 3W and electric 3W sales.
On the manufacturing front, the top 80 Indian electric 2W OEMs now boast a combined capacity of 10 million units, nearly eight times the domestic sales volume. Planned expansions could raise capacity to 17 million, setting the stage for major export and domestic market expansion.
Southeast Asia: Rapid Expansion with Chinese Support
Southeast Asian countries are making swift progress in electric 2W adoption, with Vietnam leading the way. Vietnam sold 250,000 electric 2Ws in 2024, achieving a nearly 10% sales share. Indonesia followed with 105,000 units and the Philippines with over 25,000. While Indonesia’s sales share remains below 2%, policy and investment trends suggest strong future growth.
Chinese OEMs are setting up localized manufacturing in these markets. In Indonesia alone, the government allocated nearly $0.5 billion to support the deployment of 800,000 electric 2Ws over the coming years. Similarly, Vietnam has embraced local champions like VinFast and Pega, alongside Chinese entrants like Yadea. Models like the VinFast Evo200 and Yadea Orla are priced under $780 and supported by battery leasing programs that cut upfront costs and enable integration with battery swapping networks.
These developments are driving new ecosystem growth around battery access, financing, and leasing models—key enablers for mass adoption.
Africa: Early Growth with Localized Manufacturing and Financing Models
Africa, though starting from a smaller base, recorded 9,000 electric 2W sales in 2024—a 40% year-on-year growth. Companies like Spiro, Roam, and Ampersand are investing in localized manufacturing. Spiro’s new Nigeria facility aims for 100,000 units annually, a hundred-fold increase over its West African plants.
Asset financiers such as M-KOPA, Mogo, and Watu are also helping African consumers and delivery riders adopt EVs through flexible lease-to-own and pay-as-you-go schemes. This unique model is proving critical in a region with limited upfront purchasing power and weaker EV infrastructure.
Europe and North America: Modest Progress
Outside Asia and Africa, adoption has been slow. Europe’s 2W electrification rate fell to 6% in 2024, despite total sales growth. Türkiye emerged as the top market in the region with over 50,000 electric 2W sales, followed by France and the Netherlands.
In North America, adoption remains marginal due to market preferences for higher-speed vehicles and limited policy support for 2/3Ws. However, urban last-mile delivery fleets are exploring low-speed electric mopeds and 3Ws for logistics and cost savings.
Conclusion: Toward a More Electrified, Equitable Future
The global electric 2/3W market is a powerful lever for emissions reduction, particularly in urban areas of developing countries. With minimal infrastructure requirements, battery swapping innovations, and increasing affordability, 2/3Ws are enabling low-income users to transition to sustainable transport.
India is emerging as the epicenter of this transition—not just as a market, but also as a production and innovation hub. With ambitious policies like PM E-DRIVE and strong domestic manufacturing capacity, India is poised to lead the global push toward affordable electric mobility.
Meanwhile, China’s attention to international markets and Southeast Asia’s policy-driven acceleration signal strong regional momentum. Africa, too, is finding its own path through manufacturing and financing innovations.
For B2B stakeholders—OEMs, suppliers, policymakers, and financiers—the next frontier lies in building scalable, interoperable, and customer-friendly ecosystems that support the mass electrification of two- and three-wheelers worldwide.