Piaggio Vehicles, a leading manufacturer of small commercial vehicles, expects the electric three-wheeler segment to reach 50% penetration in the domestic market by mid-2028. According to Diego Graffy, Chairman and Managing Director of Piaggio Commercial Vehicles Pvt Ltd, the penetration of L5 electric three-wheelers has been increasing despite a reduction in government incentives under the FAME program. The company believes that this growth is due to a structural shift in the market, driven by factors such as improved charging infrastructure, lower cost of acquisition, and ease of financing and servicing.
The electric three-wheeler segment is divided into two categories: L5 and L3. L5 refers to three-wheeler auto-rickshaws for carrying passengers or cargo, while L3 refers to e-carts. The government has been promoting the adoption of electric vehicles through various fiscal incentives, including the FAME program, which ended in March last year. A new program, PM E-Drive Scheme, was announced in September 2024 with an outlay of Rs 10,900 crore to boost EV sales.
Graffy noted that despite the reduction in incentives, the demand for electric three-wheelers has continued to grow, with L5 passenger electric three-wheeler penetration accounting for 22.8% of total EV sales in FY 25. The company has launched two new electric passenger three-wheelers, the Ape E-City Ultra and Ape FX Maxx, priced at Rs 3.80 lakh and Rs 3.30 lakh, respectively. These vehicles are designed to provide best-in-class range, low battery degradation, strong performance, and minimal operating costs.
However, Graffy emphasized the need for clarity on the continuation of government incentives, which is currently uncertain. He stated that even if the government wants to discontinue incentives from a particular date, it should be declared clearly so that OEMs can plan their strategy accordingly. Piaggio Vehicles is maintaining its pace with the industry’s growth and is focused on innovating and introducing new features and technologies every two years. The company believes that electric vehicles are an opportunity to reshape urban transport and improve livelihoods, and it is committed to contributing to a more inclusive and sustainable future.