Africa ICE Three-Wheeler Market will witness a CAGR of 5.32% during the forecast period between 2023 and 2030. The global three-wheeler market was valued at USD 8.41 billion in 2022 and will register a lower CAGR of 4.51% in value terms during the same period due to subdued growth of internal combustion engine powered three wheelers vis-à-vis electric three wheelers. Three-wheelers are frequently used for last mile passenger and cargo transportation. The demand for three-wheelers in the African region is further influenced by the need for faster and less expensive options for public and goods transportation in the numerous developing nations.
In order to address the growing demand and evolving needs of customers, manufacturers are expanding their range of three-wheeler vehicle models. For instance, the Alfa CNG three-wheeler passenger and cargo vehicles was introduced in April 2022 by Mahindra Electric Mobility Limited, India based Mahindra & Mahindra Ltd’s subsidiary operating in Africa. A 395cm water-cooled engine that could provide 23.5 Nm of torque was used to propel the vehicle.
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Increase in Fuel Prices
In many countries in Africa, three-wheeler engines are primarily powered by gasoline, CNG or diesel. The region’s three-wheeler sales had been adversely impacted due to the high cost of fuel in several countries. The cost of fuel has significantly increased during the last three years. Furthermore, it is projected that prices would rise soon further due to the increased demand and restricted supply of crude oil from Russia due to the sanctions imposed.
Post lifting of restrictions imposed due to the pandemic and rapid recovery in global economic activity, prices of crude oil is anticipated to rise over the near term. Higher taxes will cause oil prices to rise rapidly further. Sales of three-wheelers powered by gasoline/CNG and diesel are expected to suffer in the near future as a result of the oil price increase. Rising fuel costs are inadvertently driving users’ preference towards electric three-wheelers in the African region.
Increasing Popularity of Shared Mobility
Shared mobility services lessen traffic in urban areas and cut down on overall vehicle emissions. As a result, digitally enabled ride-hailing and car sharing efficiently manage transportation demands while also offering a convenient and sustainable alternative to owning a private vehicle. A single mobile app can manage the entire process of sharing and ride-hailing, from arranging a trip to making payments.
Ride-hailing services are anticipated to play a significant role in this market over the next few years by eliminating manual labour and lowering overall time and cost. The ICE Three-Wheeler Market in Africa is expected to grow because of this trend.
Impact of COVID-19 on Africa ICE Three-Wheeler Market
The COVID-19 caused a production standstill that hampered the sales of ICE three-wheeler market in Africa. The three-wheeler sector had been impacted by a mix of supply and demand concerns because most of the countries in and outside the African region had announced lockdown. Due to a unavailability of port infrastructure and workers, many three-wheeler manufacturing companies were unable to finish their export shipments nor import components. Additionally, even if some governments had not placed restrictions on the import and export of these goods, producers primarily concentrated on meeting domestic demand in order to reduce costs. These actions had severely disrupted import-export operations throughout Africa.
After experiencing the shocks due to COVID-19 induced lockdown, Africa’s economy is gradually recovering from the lows experienced in the first half of 2020. There is a significant rebound in supply & value chain operations, growth in demand and import & trade in automobile and transportation industry. Many manufacturers are showing interest in export of ICE three wheelers to the African regions as there is rising demand for shared mobility and also growing economic condition after COVID-19.
Impact of Russia-Ukraine War on Africa ICE Three-Wheeler Market
The Russia Ukraine war had adversely impacted Africa’s economic recovery from the shocks of COVID-19 pandemic. Rising fuel prices, disruption in trade of goods and components for automobile industry specially for two wheelers and three wheelers sector. Supply chain disruption affected the production of ICE three-wheeler market and also lowered the demand of ICE three-wheeler among consumers due to increased price of fuel and lower offtake of three wheelers by B2B sectors such as e-commerce and tourism.
Africa ICE Three-Wheeler Market Assessment, Opportunities and Forecast, 2016-2030
“Africa ICE Three-Wheeler Market Assessment, Opportunities and Forecast, 2016-2030F” is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the current state of business in the ICE three wheeler market in Africa, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities and forecasts (2023-2030). Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.