India Electric Rickshaw Motor and Controller Market Overview
The market of India electric rickshaw motor is estimated to reach $59.8 million by 2024, growing at a CAGR of 15.1% during the forecast period. Whereas the market for electric rickshaw controller is projected to reach $26.2 million by 2024, growing at a CAGR of 14.4% during the forecast period. Proliferation of electric rickshaws on Indian roads and increase in average age of electric rickshaws are the two major factors driving the growth of electric rickshaw motor and controller market in India. Electric rickshaw market has boosted rapidly in the country, owing to low operating cost over auto rickshaw and added advantage it offers over cycle rickshaw. Also, the support of government in form of incentives has increased the adoption of these vehicles in India.
Electric Rickshaw Motor Market Segment Analysis
On the basis of vehicle, the electric rickshaw motor market has been categorized into battery rickshaw, e-auto, and retrofitted rickshaw. Of these, battery rickshaws recorded the largest demand in 2018, with around 95% of total volume sales. Battery rickshaws are considered a better alternative to cycle rickshaws, as they are comparatively easy to operate and require no human power for propulsion. Furthermore, they are less expensive and have low operating cost than conventional auto rickshaws. Such factors led to increased demand of battery rickshaws and its motor.
OEM and aftermarket are the two broader users of electric rickshaw motors. The demand of these motors has been more from OEMs than aftermarket.
Geographically, Delhi contributed the largest share to the Indian electric rickshaw motor market during the historical period, owing to increased sales of electric rickshaws in the state, which picked up since 2013. Also, in response to the increasing level of air pollution, the Delhi government in 2016 announced a subsidy of $439.6 (INR 30,000) on the purchase of electric rickshaws, which has led to the proliferation of these vehicles in the state in recent years, further benefitting the market of electric rickshaw motors.
Electric Rickshaw Controller Market Segment Analysis
Based on vehicle, the electric rickshaw controller market has been categorized into battery rickshaw, e-auto, and retrofitted rickshaw. Among these, controllers used in battery rickshaw dominated the market in the historical period both in terms of volume and value. In 2018, the category alone held more than 95% market share in terms of volume and is estimated to continue dominating the market during the forecast period.
Geographically, Delhi has been the largest market for these controllers during the historical period, where it held near about 30% share in total volume sales in 2018. However, Uttar Pradesh is expected to become the largest market in 2023 and 2024.
India Electric Rickshaw Motor and Controller Market Dynamics
Proliferation of electric rickshaws on Indian roads and increase in average age of electric rickshaws are the major factors driving the growth of the Indian electric rickshaw motor and controller market. The electric rickshaw market in India has boosted rapidly, owing to low operating cost over auto rickshaw and added advantage it offers over cycle rickshaw, in addition with government support in form of incentives. In 2018, there were more than 7 lakh electric rickshaws on roads in the country, an increment of about 6 lakh units from 2014. This sudden upsurge occurred primarily due to incentives and environmental policies implemented by the Government of India, which resulted in increased adoption of electric rickshaws in the country.
The Indian electric rickshaw market is further expected to grow during the forecast period. Some known automotive players, such as Mahindra & Mahindra Ltd. and Hero Electric Vehicles Pvt. Ltd., have entered the electric rickshaw market in recent years. Hence, with the increase in number of organized players, electric rickshaws on roads is expected to grow, driving the growth of the electric rickshaw motor and controller market in the country.
Lack of clarity on operational guidelines for electric rickshaws and substandard motors and controllers provided by local players are the main factors hampering the growth of the Indian electric rickshaw motor and controller 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 market growth to some extent. Under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India Scheme, the government provides subsidies for electric rickshaws to encourage their adoption in the country. However, lack of proper guidelines regarding these vehicles has a negative impact on their sales. Also, these vehicles are often considered unsafe and unreliable, owing to their light weight. Such lack of regulations restricts the adoption of these vehicles to some extent, with their application limited to last-mile connectivity.
India Electric Rickshaw Motor and Controller Market Competitive Landscape
Some of the major electric rickshaw motor and controller manufacturers are CY International, Changzhou Yufeng Vehicles Co. Ltd., Changzhou Xieheng Power Technology Co. Ltd. and Hangzhou Yuyang Technology Co. Ltd.
The report also includes state-wise analysis of the market. The major states covered in the report are Madhya Pradesh, Uttar Pradesh, Delhi, West Bengal, Rajasthan, Bihar, Haryana, Chhattisgarh, Uttarakhand, Punjab, Jharkhand, Assam, Tripura.