e-Rickshaw Market Space

Electric Rickshaw

Electric Rickshaw Market

In India Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The report covers E Rickshaw Manufacturers in India and has been Segmented by End User (Passenger Carrier and Goods Carrier), Battery Type (Lithium-Ion Battery, Lead Acid Battery, and other types of battery), Battery Capacity (Up to 3 KWh and More than 3 KWh), and States (Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Punjab, Karnataka, Delhi, Telangana, and Rest of India). The report offers market size and forecast for the Indian electric rickshaw market in value (USD million) for all the above segments.

Source of Reports been organized:

India Electric Rickshaw Market Analysis

The Indian electric rickshaw market was valued at USD 1,146 Million in last year and is expected to reach USD 2,810 billion, registering a CAGR of more than 11% during the forecast period.

The COVID-19 pandemic impacted the growth of the Indian electric rickshaw market, as lockdowns and curfew-like situations in infection hotspots reduced the demand for public transportation substantially. However, post the pandemic, the situation normalized, and the automotive industry witnessed significant growth in demand for electric rickshaws, backed by supportive government policies and the availability of cost-friendly models in the market.

Over the medium term, growing concerns over pollution and the rise in stringent emission regulations have encouraged countries to include more electric rickshaws. This has led to major growth for the market during the forecast period.

The Indian government promotes electric vehicles in public transportation and fleets, emphasizing two-wheelers and three-wheelers, taxis, and buses. The lower cost of transport, affordable price of rickshaws, and flexibility across congested urban roads are some advantages of rickshaws, driving their demand across the country.

Moreover, stringent emission norms, rising fuel prices, incentives for e-rickshaws, and an increased range of e-rickshaws are shifting consumer preference toward e-rickshaws. Furthermore, the expected ban on fuel-powered vehicles will likely propel the demand for e-rickshaws.

Uttar Pradesh is expected to be the largest e-rickshaw market in India, followed by Delhi during the forecast period due to the growing demand for these rickshaws in Tier-1 cities, Tier-2 cities, and the rural-urban periphery. In addition, other states, such as Bihar, West Bengal, and Assam, are witnessing significant demand for these rickshaws.

India Electric Rickshaw Market Analysis

This section covers the major market trends shaping the India Electric Rickshaw Market according to our research experts:

Passenger Carrier Segment Likely to Have Fastest Growth

The passenger carrier segment is expected to hold a large share of the Indian electric rickshaw market in the future, based on the end user. Due to the increasing urban population driving the demand for cost-effective first and last-mile transportation, the number of passenger carrier e-rickshaws is burgeoning on the country's roads. Factors such as growing end-user affordability, cost advantage over auto-rickshaws, better daily earnings than cycle rickshaws, and increasing investments by manufacturers in the design and development of more efficient and affordable rickshaws are expected to benefit and boost the market during the forecast period.

Currently, the dominant mode for last mile connectivity in several states, including Delhi, Bihar, West Bengal, and Uttar Pradesh, the three-wheeler market is expected to witness strong growth in currently under-penetrated states, such as Chhattisgarh, Madhya Pradesh, and Odisha, in the coming years. This growth will primarily be driven by the low running costs of electric three-wheelers, which offer savings of 70-80%, compared to the currently dominant gas-powered three-wheelers. Several electric rickshaw manufacturers across the country are launching their new model, which, in turn, is likely to witness major growth during the forecast period. For instance, in July 2021, Piaggio Vehicles Pvt. Ltd launched its new Ape electric in Hyderabad, India. The Ape electric has a range of up to 90 km on a single charge and has a maximum speed of up to 45 kmph. A three-wheeler sharing service is seen as a viable economic and quick solution for daily commuters. Electric rickshaws cause zero tailpipe emissions and are widely used for first/last-mile connectivity in cities across the country. These electric three-wheeled vehicles also help bridge public transport service gaps for commuters. Thus, electric rickshaws can be viewed as the most suitable low-cost shared mode of public transport for last-mile connectivity in the country.

India Electric Rickshaw Industry Overview

The Indian electric rickshaw market is primarily dominated by a large number of small, unorganized local players, accounting for a major market share. Some of the major players in the market are Lohia Auto Industries, Kinetic Green Energy and Power Solutions Ltd, Terra Motors Corporation, ATUL Auto Ltd, and YC Electric Vehicle Corporation, among others. However, several state governments offer policies and subsidies to promote the sale of electric three-wheelers throughout the country. For instance,

  • In July 2022, Chargeup, the company building Bharat's largest battery-swapping network for electric two and three-wheelers, collaborated with Paisalo Digital Ltd and Goenka Electric Motors (GEM), to support customers in financing and battery swapping.
  • In 2021, the Government of Maharashtra announced the provision of an incentive of INR 5000/kWh for all e-vehicle categories. The maximum subsidy for electric three-wheelers is about INR 57,000-92,000.
  • In 2021, the Gujarat government provided a subsidy of INR 10,000 per kWh. The state government provides a subsidy of up to INR 20,000 for two-wheelers, 50,000 for three-wheelers, and up to 1.5 lakh for four-wheelers. This will be credited directly to the bank account through DBT.
  • In September 2020, EV Motors India and Hero Electric partnered to offer advanced battery solutions and charging infrastructure for electric vehicles in India. This partnership focuses on developing two-wheeler and three-wheeler electric vehicles.

India Electric Rickshaw Market Leaders

  1. Mahindra Electric Mobility Limited

  2. Kinetic Green Energy & Power Solutions Ltd

  3. Terra Motors India Corp.‚Äč

  4. Piaggio Vehicles Pvt. Ltd

  5. Zuperia Auto Pvt. Ltd

India Electric Rickshaw Market News

  • In March 2022, Zuperia Auto Pvt. Ltd launched a new three-wheeler electric vehicle, the Narain Xi. The vehicle has a battery capacity of 85 AH Li-Ion and has a range of up to 100 km on a single charge.
  • In December 2021, Mahindra Electric launched a new passenger three-wheeler, the Treo EV, on the Indian market. Powering the Mahindra Treo EV is an 8 kW motor capable of generating 42 Nm of peak torque.
SCOPE OF THE REPORT

India Electric Rickshaw Industry Segmentation

E-rickshaw is an electric-powered, three-wheeled vehicle primarily utilized for commercial purposes to transport passengers and goods. E-rickshaw is also known as an electric tuk-tuk and toto. It utilizes a battery and an electrified powertrain to propel the vehicle. The Indian electric rickshaw market is segmented by end user, battery type, battery capacity, and state. Based on the end user, the market is segmented into passenger carriers and goods carriers. Based on the battery type, the market is segmented into lithium-ion, lead acid, and other battery types. Based on battery capacity, the market is segmented into up to 3 KWh and more than 3 KWh. Based on the states, the market is segmented into Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Punjab, Karnataka, Delhi, Telangana, and the Rest of India. For each segment, market size and forecast have been calculated based on value (USD million).

Source: https://www.mordorintelligence.com/industry-reports/india-electric-rickshaw-market