India Electric Rickshaw Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.15 Billion |
| Market Size (2029) | USD 2.81 Billion |
| CAGR (2024 - 2029) | 11.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Electric Rickshaw Market Analysis
The India Electric Rickshaw Market size is estimated at USD 1.15 billion in 2024, and is expected to reach USD 2.81 billion by 2029, growing at a CAGR of 11% during the forecast period (2024-2029).
The electric rickshaw market in India holds significant importance due to its contribution to the country's transportation sector and its role in promoting eco-friendly alternatives. The market has witnessed substantial growth in recent years, driven by factors such as increasing environmental concerns, government initiatives, and technological advancements.
Several driving factors have contributed to India's increasing number of electric rickshaws. Firstly, the Indian government has launched numerous initiatives to encourage the adoption of electric vehicles (EVs) to combat air pollution and reduce carbon emissions, which has led to the provision of subsidies, tax benefits, and infrastructure development for EV charging stations. Additionally, electric rickshaws offer cost-effective solutions for operators and passengers, as they are less expensive to maintain and operate than traditional fuel-powered vehicles. E-rickshaws are user-friendly, easy to maneuver in congested urban areas, and require minimal training for drivers.
One of the primary challenges is the lack of standardization regarding quality, safety, and performance, leading to the proliferation of low-quality e-rickshaws, which may compromise safety and affect the overall market perception. However, this also presents an opportunity for manufacturers to focus on improving the quality and reliability of their products. Another challenge is the limited charging infrastructure, which can hinder the widespread adoption of electric rickshaws. To overcome this challenge, the government and private players can collaborate to establish more charging stations across the country.
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. There are around 4.53 lakh e-rickshaws in Uttar Pradesh, 1.41 lakh e-rickshaws alone in Delhi, and a total of around 9 lakh e-rickshaws in India. In addition, other states, such as Bihar, West Bengal, and Assam, are witnessing significant demand for these rickshaws.
As the market matures, it is expected to witness further growth in terms of adoption, technological advancements, and infrastructure development. Manufacturers should focus on innovation, safety, and quality to capitalize on this opportunity. The Indian government can also promote the market by increasing subsidies, providing tax incentives, and investing in charging infrastructure. In the long run, the electric rickshaw market in India has the potential to become a key player in the country's efforts to transition toward a cleaner and more sustainable transportation system.
India Electric Rickshaw Market Trends
Passenger Carrier Segment Likely to Have the Fastest Growth
The passenger carrier segment within the electric rickshaw market in India is projected to experience the most rapid growth, attributed to the increasing demand for economical and eco-friendly public transportation solutions, particularly in urban areas. The rising urban population is driving the need for cost-effective options for first and last-mile transportation, leading to a surge in the number of passenger carrier e-rickshaws on the country's roads.
Several factors are contributing to the growth of this segment, including the growing affordability of electric passenger carriers, which offer a cost advantage over auto-rickshaws, and the potential for higher daily earnings compared to cycle rickshaws. Additionally, increased 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.
Electric three-wheelers dominate the last-mile connectivity market in states like Delhi, Bihar, West Bengal, and Uttar Pradesh. In the coming years, there is a strong expectation for growth in currently under-penetrated states such as Chhattisgarh, Madhya Pradesh, and Odisha. This growth will primarily be driven by the significantly lower running costs of electric three-wheelers, which offer savings of 70-80% compared to gas-powered three-wheelers.
Several electric rickshaw manufacturers across India are launching new models, likely contributing to the market's growth during the forecast period. For instance, Bajaj Auto unveiled its first three-wheeled electric vehicle in April 2023, targeting passenger and cargo vehicle categories. Similarly, Lohia Auto Industries Ltd announced its plans to launch high-speed scooters and new passenger-carrying three-wheelers in November 2023. These developments from OEMs and consistent efforts from the Indian government may contribute to the growth of the passenger carrier segment in India.
In the coming years, the electric passenger carrier segment in India's electric rickshaw market is expected to grow substantially due to the increasing demand for affordable, eco-friendly public transportation and the government's and manufacturers' supportive efforts. As the market matures, manufacturers need to focus on innovation, safety, and quality to cater to the evolving needs of Indian consumers.
Major Cities like Uttar Pradesh and Delhi to Capture the Major Market Share
Major cities like Delhi and Uttar Pradesh have captured significant market share in the electric rickshaw market in India. The increasing awareness about the environmental benefits of electric vehicles, coupled with the need for affordable and efficient public transportation solutions, has led to a surge in the adoption of electric rickshaws in these urban areas. Additionally, the growing population and traffic congestion in these cities have made electric rickshaws an attractive alternative to traditional modes of transportation.
Uttar Pradesh has the largest market, with sales of 4,53,876 units in 2022. Similarly, Delhi sold around 1.41,672 units in the same year. E-rickshaw sales have been increasing in the country due to the provision of subsidies on the purchase of e-rickshaws to tackle the alarming air pollution in the country. In the coming years, the increasing demand for eco-friendly public transport in various metro cities like Bangalore, Pune, and Mumbai will likely make the e-rickshaw segment the largest revenue contributor to the EV industry.
Government initiatives and incentives have played a crucial role in boosting the electric rickshaw market in Delhi and Uttar Pradesh. Delhi government has offered INR 30,000 incentives to purchase e-rickshaws/carts with a 100% tax road exemption. The primary objective of the Delhi Electric Vehicle Policy is to drive rapid adoption of battery electric vehicles (BEVs) so that they contribute to 25% of all new vehicle registrations by 2024. Similarly, the Uttar Pradesh government has introduced a 100% tax road exemption on purchasing electric rickshaws. This benefit will be extended to EVs manufactured in the state as well, with a validity of five years.
The Indian government's 'Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME)' scheme provides financial support to promote electric vehicles, including electric rickshaws. Both cities have also set up charging infrastructure to support the growing number of electric rickshaws. The Delhi government has installed over 500 charging stations across the city, while Uttar Pradesh plans to establish charging stations every 3-5 km in major cities.
Favorable government initiatives to accelerate EV sales across the cities are likely to propel the demand for e-rickshaws during the forecast period. For instance, in February 2023, the Delhi government introduced the 'Sojo' mobile app. The application allows users to book e-rickshaws within a 10-kilometer radius of metro stations, similar to car or taxi bookings. In December 2023, the Uttar Pradesh government initiated Mission Shakti Abhiyan, offering e-rickshaws to 250 women in every district. The initiative aims to connect women with self-employment opportunities and promote their economic empowerment.
In the long run, electric rickshaws have the potential to significantly contribute to reducing carbon emissions and improving urban transportation in Delhi and Uttar Pradesh.
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. However, several state governments offer policies and subsidies to promote the sale of electric three-wheelers nationwide. For instance,
- In August 2023, Udaan announced an electric rickshaw expansion plan for Northeast India to revolutionize last-mile connectivity and contribute to sustainable urban mobility. The company expects significant sales growth in the region. Udaan has appointed Zonal Sales heads for the East and Northeast regions to strengthen its presence and is actively building a network of distributors and dealers. Udaan has also partnered with various banks and financial institutions to facilitate credit facilities, making it easier for potential buyers to adopt EVs without facing financial barriers.
- In August 2023, Lord's Automotive Pvt. Ltd, a subsidiary of Lord's Mark Industries, introduced a range of EVs. The lineup consists of six three-wheeler models: Lord's King E-Rickshaw, Lord's Samrat E-Loader, Lord's Sawari Butterfly E-Rickshaw, Lord's Gati Butterfly E-Loader, Lord's Grace E-Rickshaw designed for individuals with disabilities, and Lord's Swachh Yaan E-Garbage.
- In August 2023, Saera Keto EV unveiled plans to launch a range of new e-rickshaws and e-autos in the next six months. The company targets sales in major metros and tier 2 and 3 cities, and it aims to establish an initial retail network of 100 dealers across the country.
India Electric Rickshaw Market Leaders
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Mahindra Electric Mobility Limited
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Kinetic Green Energy & Power Solutions Ltd
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Terra Motors India Corp.
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Piaggio Vehicles Pvt. Ltd
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Zuperia Auto Pvt. Ltd
*Disclaimer: Major Players sorted in no particular order
India Electric Rickshaw Market News
- September 2023: Mahindra, a leading e3-wheeler manufacturer in India, announced its plans to introduce the EALFA Super Rickshaw. This innovative vehicle boasts an enhanced range to improve the overall performance and efficiency of last-mile connectivity solutions. The EALFA Super Rickshaw has been designed to meet customers' evolving needs, ensuring a comfortable and reliable ride. Mahindra's commitment to sustainability and advanced technology continues to drive its success in the e3-wheeler market.
- September 2022: E-FILL unveiled its new e-auto and a 60kW public fast charger at the EV India Expo 2022. The 60kW public fast charger aims to provide seamless charging experiences for electric vehicle users nationwide. The L5 category LIFT-EA features a 7kW motor and a 14.5kWh BNEW battery pack, a spacious 140 cubic feet loading area, a digital instrument cluster, ergonomic seating, and a covered top box. The EV charger, an X4 series 60kW 3-phase DC-powered unit, comes with a CCS2 dual gun connector.
- August 2023: Lord's Automotive introduced eight advanced two-wheeler and three-wheeler electric vehicles, priced between INR 49,999 and INR 175,000.
- January 2023: Godawari Electric Motors (eblu) launched India's first electric auto L5M three-wheeler, featuring complete body panels made of DCPD material.
- March 2023: TIC Motors announced its plans to launch its battery norm-compliant Montra E3W model in the first quarter of 2024. This launch aligns with the government's push toward adopting cleaner and more sustainable transportation solutions. The Montra E3W is designed to cater to last-mile connectivity needs, offering an eco-friendly and cost-effective alternative to traditional fuel-based vehicles. By introducing this vehicle, TIC Motors aims to significantly contribute to India's transition toward electric mobility.
India Electric Rickshaw Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Government Initiatives and Subsidies Help Boost Electric Rikshaw Sales in India
4.2 Market Restraints
4.2.1 Limited Charging Infrastructure and Range Anxiety May Hamper the Growth of Electric Rikshaw Sales in India
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Buyers/Consumers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD Million)
5.1 By End User
5.1.1 Passenger Carriers
5.1.2 Goods Carriers
5.2 By Battery Type
5.2.1 Lithium-ion Battery
5.2.2 Lead Acid Battery
5.2.3 Other Battery Types
5.3 By Battery Capacity
5.3.1 Up to 3 KWh
5.3.2 More than 3 KWh
5.4 By States
5.4.1 Maharashtra
5.4.2 Uttar Pradesh
5.4.3 Tamil Nadu
5.4.4 Rajasthan
5.4.5 Punjab
5.4.6 Karnataka
5.4.7 Delhi
5.4.8 Telangana
5.4.9 Rest of India
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Terra Motors India Corp.
6.2.2 Piaggio Vehicles Pvt. Ltd
6.2.3 Kinetic Green Energy & Power Solutions Ltd
6.2.4 Mahindra Electric Mobility Limited
6.2.5 ATUL Auto Limited
6.2.6 Goenka Electric Motor Vehicles Private Limited
6.2.7 Adapt Motors Private Limited
6.2.8 Saera Electric Auto Private Limited
6.2.9 Vani Electric Vehicles Pvt. Ltd (Jezza Motors)
6.2.10 Udaan E Rickshaw
6.2.11 Thukral Electric Bikes
6.2.12 Mini Metro EV LLP
6.2.13 E-Ashwa Automotive Private Limited
6.2.14 CityLife EV
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Electric Rickshaw Industry Segmentation
E-rickshaw is an electric-powered, three-wheeled vehicle primarily used to transport passengers and goods commercially. 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.
By end user, the market is segmented into passenger carriers and goods carriers. By battery type, the market is segmented into lithium-ion, lead acid, and other battery types. By battery capacity, the market is segmented into up to 3 KWh and more than 3 KWh. By state, the market is segmented into Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Punjab, Karnataka, Delhi, Telangana, and Rest of India. For each segment, market size and forecast have been calculated based on value (USD).
| By End User | |
| Passenger Carriers | |
| Goods Carriers |
| By Battery Type | |
| Lithium-ion Battery | |
| Lead Acid Battery | |
| Other Battery Types |
| By Battery Capacity | |
| Up to 3 KWh | |
| More than 3 KWh |
| By States | |
| Maharashtra | |
| Uttar Pradesh | |
| Tamil Nadu | |
| Rajasthan | |
| Punjab | |
| Karnataka | |
| Delhi | |
| Telangana | |
| Rest of India |
India Electric Rickshaw Market Research FAQs
How big is the India Electric Rickshaw Market?
The India Electric Rickshaw Market size is expected to reach USD 1.15 billion in 2024 and grow at a CAGR of 11% to reach USD 2.81 billion by 2029.
What is the current India Electric Rickshaw Market size?
In 2024, the India Electric Rickshaw Market size is expected to reach USD 1.15 billion.
Who are the key players in India Electric Rickshaw Market?
Mahindra Electric Mobility Limited, Kinetic Green Energy & Power Solutions Ltd, Terra Motors India Corp., Piaggio Vehicles Pvt. Ltd and Zuperia Auto Pvt. Ltd are the major companies operating in the India Electric Rickshaw Market.
What years does this India Electric Rickshaw Market cover, and what was the market size in 2023?
In 2023, the India Electric Rickshaw Market size was estimated at USD 1.02 billion. The report covers the India Electric Rickshaw Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Electric Rickshaw Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
E Rickshaw in India Industry Report
Statistics for the 2024 E Rickshaw in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. E Rickshaw in India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
