India Electric Rickshaw Market Outlook by Vehicle (Passenger Carrier, Load Carrier), Motor Power (<1000W, 1000-1500W, >1500W), Battery Capacity (<101Ah, >101Ah) - Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The Indian e-rickshaw market size was at USD 273.6 million in 2022, and it is expected to reach USD 456.2 million in 2030, with a growth rate of 6.6% during 2022–2030. The major factors behind this are the government incentives and environmental policies, declining battery prices, and the fact that these vehicles are a low-priced, convenient solution for commuting. These vehicles serve as the backbone of the last-mile mobility and low-weight cargo/logistics ecosystems in the country presently.

The upfront cost of an e-rickshaw is quite lower compared to its internal combustion engine (ICE)-based counterpart. The initial cost of the former is $811.6–1,488.0 (INR 0.6–1.1 lakh), while that of an ICE-based auto-rickshaw is $2,029.1–4,058.1 (INR 1.5–3 lakh). Similarly, the running cost is only $0.005 (INR 0.4) per km for the former, as compared to $0.028–0.031 (INR 2.1–2.3) per km for ICE variants. The handling and maintenance problems with e-rickshaws are also quite few, which saves additional costs. Further, they offer better employment opportunities to cycle-rickshaw drivers, whose business is swiftly winding up.

Moreover, electric three-wheelers help in mitigating air and noise pollution. At least 1,036.6 tons of CO2 emissions can be alleviated per day (378,357 tons of CO2 annually) if a CNG three-wheeler auto is substituted by an e-rickshaw. Moreover, the localization of lithium-ion battery production helps in encouraging people to buy lithium-ion-battery-based e-rickshaws. The current operation stock of lead–acid e-rickshaws, however, cannot be overlooked, and therefore, manufacturers are focusing on launching buyback schemes, under which the scientific disposal of lead–acid-battery-based e-rickshaws can be connected to discounts on the purchase of new lithium-ion-battery-based ones.

Increasing Demand for Solar-Operated E-Rickshaw Boosts Sales

The increasing demand for e-rickshaws that charge with solar power is the new trend in the Indian e-rickshaw market. A normal battery e-three-wheeler uses the conventional form of electricity to charge its batteries. But, in a solar-powered variant, the batteries can be charged on the run on a sunny day. Additionally, these vehicles offer higher energy efficiency, while solar panels can raise their mileage by approximately 10% to 15%, with a lifecycle of 10 years. Such characteristics are propelling the traction for these vehicles for transportation purposes, and manufacturers, such as Inter IKEA Systems B.V. and Lohia Auto Industries, are launching such new products to earn a competitive advantage.

Passenger Carrier Demand To Grow Faster during Forecast Period

The passenger carrier category is projected to corner the higher CAGR, of 7.8%, during the forecast period. With the rapidly growing urban population fueling the demand for cost-effective first- and last-mile transportation, the deployment of passenger carrier e-rickshaws is mushrooming, to offer cheap transportation services.

1,000–1,500W Variants To Dominate Market

E-rickshaws with 1,000–1,500W motor power held the largest share in the market in 2022. A large number of e-rickshaws are equipped with 1,000–1,500W motors as they offer operational cost benefits. Companies are concentrating on leveraging their experience and knowledge in the production of automotive electrical parts and motors to diversify their production capacity and augment the supply of these motors over time.

Batteries with Capacity of more than 101 Ah To Sell Faster during Forecast Period

E-rickshaw with batteries of less-than-101Ah capacity held the largest share of the revenue, of 68%, in 2022. Moreover, since these variants cost less than those with higher-capacity batteries, this is expected to retain its dominance over the forecast period. Moreover, unorganized OEMs dominated the market in the initial period, and they majorly offer such cost-effective and low-battery-capacity variants.

However, during the forecast period, e-rickshaws with a more-than-101Ah battery capacity are expected to witness the faster growth in sales. This can be credited to the rising popularity of vehicles that can travel long distances without requiring frequent charging.

Organized Sales Channel To Grow Faster

The organized sales channel will witness the higher CAGR, throughout this decade. With the proliferating significance of organized automakers who specialize in manufacturing and providing better-quality products with powerful motors, they are registering higher sales revenue.

Increasing Number of Partnerships with Government Authorities Boosts Growth

As the Government of India (GOI) and state authorities regularize the use of e-rickshaws, there have been numerous public–private partnerships to drive the usage of these automobiles. For instance, in June 2017, the first e-rickshaw service of Delhi Metro Rail Corporation was formally flagged off at Vaishali station, in order to offer last-mile connectivity from and to metro stations. Moreover, by February 2020, the services, offered by SmartE, had been extended to a total of 17 stations, with over 800 such vehicles catering to approximately 100,000 commuters every day.

Similarly, ETO Motors, an electric mobility as a service (EMaaS) company headquartered in Hyderabad, launched such short-distance shared mobility services at a few Delhi Metro stations in March 2020. ETO Motors also offers these services in partnership with Noida Metro Rail Corporation (NMRC), Kochi Metro Rail Ltd. (KMRL), Hyderabad Metro Rail (HMR), Nagpur Metro Rail Project (NMRL), Telangana State Road Transport Corporation (TSRTC), and South Central Railway. As state governments prepare regulations and start investing in electric mobility and infrastructure, shared mobility services are expected to witness tremendous growth.

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Uttar Pradesh Is Principal Revenue Contributor

In 2022, Uttar Pradesh accounted for the largest share in the Indian e-rickshaw market, primarily due to the growing demand for these vehicles from tier-1 cities, tier-2 cities, and rural–urban fringes. Essentially, the expanding customer base is driving the use of these vehicles, thus propelling sales growth in the state.

In 2019, e-rickshaws were launched in 65 new tier-2 and tier-3 cities due to the high demand for them and customers’ requirements for last-mile connectivity. Apart from UP, other states, such as Bihar, West Bengal, and Assam, have a significant number of these vehicles. Further, Chhattisgarh, Tripura, Orissa, and other eastern states are among the fastest-growing markets in the country.

Top E-Rickshaw Producing Companies Are:

• Electrotherm (India) Ltd.
• Terra Motors Corporation
• Hero Electric Vehicles Pvt. Ltd.
• Kinetic Green Energy & Power Solutions Ltd.
• Lohia Auto Industries
• ATUL Auto Ltd.
• Saera Electric Auto Pvt. Ltd.

Market Size Breakdown by Segment

The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017–2030.

Based on Vehicle

• Passenger Carrier
• Load Carrier

Based on Motor Power

• <1000W
• 1000-1500W
• >1500W

Based on Battery Capacity

• <101Ah
• >101Ah

Geographical Analysis

• Madhya Pradesh
• Uttar Pradesh
• Delhi
• West Bengal
• Rajasthan
• Bihar
• Haryana
• Chhattisgarh
• Uttarakhand
• Punjab
• Jharkhand
• Assam
• Tripura