Exerting a good deal of export thrust apart from enjoying a sizeable domestic market, Indian three-wheeler industry has turned out to be the largest three-wheeler industry in the world with industry volume of over 94,000 units in FY2015. According to ICRA sources, the three-wheeler industry, over the past decade, has witnessed a CAGR of 8.9 per cent in unit sales driven by steadily rising exports as well as domestic demand. The domestic three-wheeler market stood at 532,000 units in FY2015. Exports, growing at a faster pace than the domestic market at 20.4 per cent over the past decade, have been on the basis of rising demand for last mile connectivity options in markets like Africa and South-East Asia. Demand has been for passenger three-wheelers over cargo three-wheelers. Cargo three-wheeler growth has been hampered by stiff competition from Small Commercial Vehicles (SCVs). The sale of 432,000 passenger carriers in FY2015 speaks about them commanding 80 per cent of the domestic market. While the sharp hike in import duties by Sri Lanka (one of the key export destinations), currency fluctuation and reduction in export incentives, were some of the negatives, the Indian three-wheeler industry continues to gather strength. Bajaj Auto continues to lead but competition is catching up. Especially by offering diesel and CNG three-wheelers.