Abstract:

The electrification of two-wheelers (2Ws) and three-wheelers (3Ws) continues to gain traction around the world, especially in emerging markets. Both established OEMs and start-ups will find opportunities to capture value in this competitive but exciting market, and other industry players could also see strong growth. Equally important, E2Ws and E3Ws will provide many consumers with affordable, environmentally friendly transportation options for the first time. Following the strategies we outlined can help industry stakeholders contribute to the momentum of this promising sector. To gain more insight into the burgeoning market, this article examined worldwide trends for small-format EVs, looking at both geographic growth patterns and the forces shaping the industry. This analysis shed some light on strategies that can help OEMs and other players succeed as small-format EVs gain traction. McKinsey research shows that E2Ws and E3Ws have surged in worldwide popularity since COVID-19 began to spread, partly because people are avoiding subways and other shared mobility solutions.