According to the China Electric Vehicle Association, the market size of China‘s three-wheel electric vehicle industry was expected to be $6.3 billion in 2023 and will be $9.12 billion in 2028.

Thus, over that period, it would record a compound annual revenue compound rate of approximately 6.36 percent. 

Electric three-wheelers are divided into heavy-duty tricycles (generally in rural areas) and urban tricycles for transportation purposes (generally in urban areas). 

In this market, Lobo EV Technologies manufactures and sells urban electric tricycles for transportation purposes, which require certain licenses from the PRC government. 

On November 27, 2018, the Ministry of Industry and Information Technology of the PRC issued the Administrative Measures for Road Motor Vehicle Manufacturers and Product Access Permits, which became effective on June 1, 2019. 

According to the provisions of Article 6 of the Measures, enterprises shall first obtain the industry access permit to manufacture road motor vehicle products. 

Qualified manufacturers can apply for driving permits for road motor vehicle products. 

Electric vehicle

Only products that have obtained driving licenses can be licensed by the Public Security Bureau of the People’s Republic of China to operate on public roads. 

In addition, Article 28 of the measures allows non-qualified enterprises to subcontract the production capacity of qualified enterprises.

According to the China Electric Vehicle Association, the sales volume growth of three-wheeled electric vehicles in China, including cargo tricycles, increased from 7 million units in 2017 to 14.35 million units in 2022, representing a compound annual rate of 12.7 percent. 

Among them, the number of cargo tricycles decreased and the number of urban tricycles increased to reach 30 percent of the total three-wheeled vehicle market in 2022.