India Electric Rickshaw Market Overview
The Indian electric rickshaw market is projected to reach 935.5 thousand units by 2023, registering a CAGR of 15.9% during the forecast period. The market has witnessed significant growth in the recent past, owing to rising environmental awareness, government incentives, and implementation of stringent regulations to curb environmental degradation. In addition, the growing end-user affordability for electric rickshaws, declining Li-ion battery prices, and a relative increase in investments by manufacturers for the designing and development of more efficient and affordable rickshaws are expected to benefit the market growth during the forecast period.
INDIA ELECTRIC RICKSHAW MARKET, BY MOTOR POWER, '000 UNITS (2013-2023)
Based on vehicle type, the Indian electric rickshaw market has been categorized into passenger carrier and load carrier. Passenger carriers dominated the market during the historical period and are expected to continue holding a larger market share, in terms of both value and volume, in the coming years. This can be majorly attributed to the growing need for means of public transportation in the country. The market for this category is also driven by the rapidly increasing urban population in the country.
Rickshaws of 1,000–1,500 W motor power contributed the largest revenue to the Indian electric rickshaw market during the historical period, accounting for more than 50% in 2017. This can be ascribed to the optimum benefit–cost ratio offered by these vehicles. During the forecast period, however, the market is expected to witness the fastest growth in the category of rickshaws of motor power greater than 1,500 W, as the demand for rickshaws with higher speed and range continues to rise in the country.
The Indian electric rickshaw market has also been categorized into rickshaws with battery capacity of less than 101 Ah and rickshaws with battery capacity of more than 101 Ah. Faster growth in the market during the forecast period is expected from electric rickshaws having battery capacity of more than 101 Ah. The growing demand for rickshaws that can travel long distances without requiring frequent charging is a major growth driver for this market category.
Among all the regions in the country, North India contributed the largest revenue to the Indian electric rickshaw market, crossing USD 417.8 thousand in 2017. High population density in cities such as Delhi, Faridabad, and Kanpur, coupled with a large passenger base, is a major factor driving the growth of the market in this region.
India Electric Rickshaw Market Dynamics
The government’s implementation of incentives is one of the key drivers for the Indian electric rickshaw market. The Indian government is increasingly focusing on providing incentives in the form of subsidies and tax refunds in order to make high-priced electric rickshaws affordable and replace their conventional counterparts.
Under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, the government is providing subsidies ranging from $364 (INR 25,000) to $887 (INR 61,000), based on the model, in order to boost the sales of these vehicles. Moreover, to promote the manufacturing of these vehicles, the government is bearing up to 60% of the research and development (R&D) cost for the development of an indigenous low-cost electric technology, which can be used to run these rickshaws. Thus, the government’s support in the form of incentives is driving the growth of the Indian electric rickshaw market.
Although the number of electric rickshaws across the Indian states continues to grow, the lack of operational guidelines for these vehicles is slowing down the Indian electric rickshaw market growth to some extent. Also, these vehicles are often considered unsafe and unreliable, owing to their light weight. Besides, the driver needs only a learner’s license to operate the electric rickshaw. Such lack of regulations restricts the adoption of these vehicles, with their application limited to last-mile connectivity.
Thus, close coordination at several levels and among various departments and ministries of the central and state governments is required for the framing of operational guidelines and policies for these rickshaws in the country. Other private and public stakeholders can also prove instrumental in policy making by making recommendations on the required changes.
India Electric Rickshaw Market Competitive Landscape
The Indian electric rickshaw market has boomed in the last couple of years, with few established players in the market. The industry is offering ample opportunities for product innovation and improvement in terms of cost efficiency; however, it is primarily dominated by local unorganized players. Some of the key players operating in the market are Lohia Auto Industries, Kinetic Green Energy and Power Solutions Ltd., Hero Electric Vehicles Pvt. Ltd., Terra Motors Corporation, Clean Motion India, and Saera Electric Auto Pvt. Ltd.