Electric Rickshaw (E-Rickshaw) Market in India Expected to Reach US$ 2.3 Billion by 2028

By | July 21, 2023

India is one of the largest markets for electric rickshaws (e-rickshaws) in the world, with an estimated 1.2 million units sold in 2022. E-rickshaws are battery-operated three-wheelers that offer a low-cost and eco-friendly alternative to conventional auto rickshaws and taxis. They are widely used for passenger and goods transportation in urban and rural areas of India.

The Indian e-rickshaw market is projected to grow at a compound annual growth rate (CAGR) of 10.7% during 2023-2028, reaching US$ 2.3 billion by 2028. The market growth is driven by several factors, such as:

  • Rising environmental awareness and government support: E-rickshaws do not emit harmful pollutants and greenhouse gases, unlike diesel or petrol vehicles. They also consume less energy and have lower operational and maintenance costs. The Government of India has been promoting electric vehicles (EVs) in public transportation and fleets, by providing incentives, subsidies, tax exemptions, and infrastructure development. The government has also implemented stringent emission norms and fuel efficiency standards for conventional vehicles, which are expected to boost the demand for e-rickshaws.
  • Increasing affordability and availability: E-rickshaws are cheaper than auto rickshaws and taxis, both in terms of purchase price and running cost. They are also easily accessible, as they can be charged at home or at public charging stations. The average price of an e-rickshaw in India ranges from Rs. 80,000 to Rs. 1.5 lakh, depending on the battery type, capacity, motor power, and features. The battery cost accounts for about 40% of the total cost of an e-rickshaw. The availability of financing options from banks and non-banking financial companies (NBFCs) has also made it easier for buyers to purchase e-rickshaws.
  • Growing demand from end users: E-rickshaws are preferred by both passengers and goods carriers, as they offer convenience, comfort, safety, and flexibility. They can navigate through congested roads and narrow lanes, where other vehicles cannot enter. They can also carry more passengers or goods than manually pulled rickshaws or cycle rickshaws. The passenger carrier segment dominates the Indian e-rickshaw market, accounting for about 90% of the market share in 2022. However, the goods carrier segment is also expected to witness significant growth in the coming years, due to the increasing e-commerce activities and last-mile delivery services.

Indian e-rickshaw market is segmented by motor power, battery capacity, battery type, sales channel, end user, and state. Based on motor power, the market is divided into <1000 W, 1000 – 15000 W, and >1500 W segments. Based on battery capacity, the market is split into <101 Ah and >101 Ah segments. Based on battery type, the market is categorized into lithium-ion battery, lead acid battery, and other types of battery segments. Based on sales channel, the market is bifurcated into organized and unorganized segments. Based on end user, the market is classified into passenger carrier and goods carrier segments. Based on state, the market is distributed among Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Punjab, Karnataka, Delhi, Telangana, and Rest of India segments.

Indian e-rickshaw market is highly fragmented and competitive, with a large number of local unorganized players operating in the market. These players offer low-priced products with varying quality standards and features. Some of the key organized players in the market are:

  • Kinetic Green Energy & Power Solutions Ltd.
  • Hero Electric Vehicles Pvt. Ltd.
  • Mahindra Electric Mobility Ltd.
  • Lohia Auto Industries
  • Terra Motors Corporation
  • Saera Electric Auto Pvt. Ltd.
  • Nibe Motors Pvt. Ltd.
  • Xxplore Automotive Pvt. Ltd.
  • Jezza Motors
  • Gayam Motor Works Pvt. Ltd.

These players are focusing on product innovation, differentiation, expansion, and partnerships to gain a competitive edge in the market.

Indian e-rickshaw market is expected to witness significant growth opportunities in the future, as the demand for clean and affordable mobility solutions increases in the country. The market is also likely to benefit from technological advancements, such as smart batteries, GPS tracking systems, digital meters, solar panels, etc., that can enhance the performance and efficiency of e-rickshaws. Moreover, the market is expected to witness a shift from lead acid batteries to lithium-ion batteries, as the latter offer higher energy density, longer lifespan, faster charging, and lower weight. The government’s initiatives to promote EV adoption, such as the FAME II scheme, the National Electric Mobility Mission Plan (NEMMP) 2020, and the National Mission on Transformative Mobility and Battery Storage, are also expected to support the market growth in the coming years.

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