Piaggio Sees E-Three-Wheeler Share Hitting 50 per cent by 2028

05 Aug 2025 CW Team

Speaking after the launch of two new electric passenger models — the Ape E-City Ultra and the upgraded Ape FX Maxx — Graffy emphasised the need for clear direction from the government regarding the future of subsidies.

Piaggio Commercial Vehicles Pvt Ltd (PVPL), the Indian arm of Italy’s Piaggio Group, has seen a sharp rise in L5 electric three-wheeler penetration over the past 18 months, despite the reduction of FAME scheme incentives to just one-fourth of previous levels.

"If this growth continues, we anticipate 50 per cent market penetration by late 2027 or mid-2028, even if incentives are withdrawn, because this is a structural change in the market,” Graffy said.

The electric three-wheeler market in India is categorised into L3 (e-carts) and L5 (passenger/cargo vehicles). L5 electric vehicles have been gaining traction due to improved charging infrastructure, lower acquisition costs, better financing, and servicing support.

Government support has played a role. The FAME II scheme, launched in 2019 with an outlay of Rs 100 billion and later increased to Rs 115 billion, concluded in March 2024. It was replaced by the Rs 109 billion PM E-Drive scheme to sustain EV momentum for two more years.

Despite the subsidy cuts, demand has continued to rise. In FY25, L5 passenger EVs comprised 22.8 per cent of total electric three-wheeler sales, while cargo variants stood at 21.5 per cent. In Q1 FY26, the passenger segment jumped to 32.4 per cent, and the cargo segment reached 22.8 per cent.

Graffy noted that southern and western India still show lower adoption rates, but he expects rapid uptake there in the coming years. The cargo segment, once driven by e-commerce needs, has stabilised, while the passenger segment is expanding quickly.

“This adoption is being led by a fundamental shift in the ecosystem. The passenger EV segment will continue to surge in the coming months,” he said.

Graffy also said Piaggio has aligned with market trends by renewing its product portfolio every two years since entering the EV space in 2019. “Unlike others, we do not rush frequent updates. Instead, we focus on innovation and technology with a two-year cycle,” he stated.

Small commercial vehicle manufacturer Piaggio Vehicles expects the L5 electric three-wheeler segment to reach a 50 per cent share of the domestic market by mid-2028, driven by a structural shift rather than just government incentives, according to its Chairman and Managing Director, Diego Graffy.Speaking after the launch of two new electric passenger models — the Ape E-City Ultra and the upgraded Ape FX Maxx — Graffy emphasised the need for clear direction from the government regarding the future of subsidies.Piaggio Commercial Vehicles Pvt Ltd (PVPL), the Indian arm of Italy’s Piaggio Group, has seen a sharp rise in L5 electric three-wheeler penetration over the past 18 months, despite the reduction of FAME scheme incentives to just one-fourth of previous levels.If this growth continues, we anticipate 50 per cent market penetration by late 2027 or mid-2028, even if incentives are withdrawn, because this is a structural change in the market,” Graffy said.The electric three-wheeler market in India is categorised into L3 (e-carts) and L5 (passenger/cargo vehicles). L5 electric vehicles have been gaining traction due to improved charging infrastructure, lower acquisition costs, better financing, and servicing support.Government support has played a role. The FAME II scheme, launched in 2019 with an outlay of Rs 100 billion and later increased to Rs 115 billion, concluded in March 2024. It was replaced by the Rs 109 billion PM E-Drive scheme to sustain EV momentum for two more years.Despite the subsidy cuts, demand has continued to rise. In FY25, L5 passenger EVs comprised 22.8 per cent of total electric three-wheeler sales, while cargo variants stood at 21.5 per cent. In Q1 FY26, the passenger segment jumped to 32.4 per cent, and the cargo segment reached 22.8 per cent.Graffy noted that southern and western India still show lower adoption rates, but he expects rapid uptake there in the coming years. The cargo segment, once driven by e-commerce needs, has stabilised, while the passenger segment is expanding quickly.“This adoption is being led by a fundamental shift in the ecosystem. The passenger EV segment will continue to surge in the coming months,” he said.Graffy also said Piaggio has aligned with market trends by renewing its product portfolio every two years since entering the EV space in 2019. “Unlike others, we do not rush frequent updates. Instead, we focus on innovation and technology with a two-year cycle,” he stated.

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Infrastructure Energy

06 Apr 2026

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Real Estate

06 Apr 2026

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..