Demand For Electric Rickshaws To Grow By 40 Per Cent In Tier 3 And Tier 4 Cities
By Carandbike Team
2 mins read
Published on May 30, 2023
- Projected to register a CAGR of 31.8 per cent during the forecast period
- The successful penetration of EVs has been observed in Delhi, Maharashtra, Haryana, and Uttar Pradesh states across India
- According to industry estimates, there are currently 2.4 million e-rickshaws operating in India
The electric three-wheeler and electric rickshaw market is experiencing a surge in popularity and demand, particularly in tier 3 and tier 4 towns in India. Industry experts are projecting a substantial growth rate of 40% in this particular sector. Consequently, e-rickshaws are rapidly replacing traditional rickshaws in many smaller towns, with Punjab, Haryana, Uttar Pradesh, and Bihar emerging as key markets.
The demand for electric rickshaws has witnessed a rise of approximately 38-40%. This shift can be attributed to initiatives in rural electrification and improved access to bank loans, facilitating the transition to e-rickshaws for rickshaw pullers. The E-rickshaw market is projected to register a CAGR of 31.8% during the forecast period, up from US $ 1.3 Billion in 2021 to reach a valuation of US $ 27.5 Billion by 2032.
According to industry estimates, there are currently 2.4 million e-rickshaws operating in India, and this number is expected to grow rapidly as the demand continues to surge. However, the market is currently dominated by unorganized players, holding a 70% market share, while organized players have yet to fully penetrate in the market. The current penetration level stands at around 40% due to factors such as limited awareness about the benefits of electric vehicles, infrastructure challenges in certain regions, and initial investment costs associated with transitioning to electric rickshaws.
One of the key factors driving the soaring demand for electric three-wheelers is their cost-effectiveness. With charging costs at around 10 paisa per km and operating expenses averaging less than 50 paisa per km, these vehicles present an attractive option for drivers and businesses.
The successful penetration of EVs has been observed in Delhi, Maharashtra, Haryana, and Uttar Pradesh states across India, with an equal number of towns ready to accept the EV revolution. E-rickshaws, with an average cost of 1 Lakh per unit, can be recovered within two years. The compact size, easy availability, and elimination of charging concerns have been driving the increasing popularity of electric rickshaws, cargo vehicles, and loaders.
Ayush Lohia, CEO of Lohia, highlights the need for a shift in demand toward organized players as the market matures, despite the existing challenges. The advantages of electric three-wheelers are evident, as they can comfortably transport up to 4 passengers, addressing the transportation needs of larger groups efficiently. Additionally, e-rickshaws offer a reliable solution for businesses requiring efficient logistics, with a significant load capacity of 300-350 kg.
Written by: - RONIT AGARWAL
Last Updated on May 30, 2023
Great Deals on Used CarsView All Used Cars
- 41,489 km
- 1,18,054 km
- 22,376 km
- 84,000 km
- 77,000 km
- 44,300 km
- 47,549 km
- 53,763 km
- 24,110 km
- 72,000 km
45 minutes ago
Now in its 10th year on sale, Maruti’s compact sedan found the least amount of takers this year in the month of November.
TVS Motor Company saw a growth of 50 per cent in domestic sales from November 2022.
The company witnessed an increase in numbers due to the festive season registering a growth of 20 per cent compared to the corresponding month last year
The Thunder Edition is up to Rs 2 lakh more affordable than the standard Jimny and is available for a limited period.
Tesla Motors has begun deliveries of the Cybertruck in USA. Currently, there are two models on sale, an AWD variant and the top-spec model, which is dubbed ‘Cyberbeast’.
2 hours ago
The brand has witnessed a YoY growth of 9.7 per cent compared to the corresponding period last year.
3 hours ago
Maruti continued to see strong demand in the utility vehicle and van segments, though small car sales continue to sag.
3 hours ago
The brand has witnessed a dip in sales of 18 per cent when compared to sales from the previous month.
3 hours ago
Previously, in October 2023, the Exter bagged over 75,000 bookings, and the 50,000 mark was reached within the first month of its launch.
5 hours ago
New tech moves the EV's reduction gear into the wheel hub allowing for more compact electric motors and greater space efficiency
1 month ago
Nissan Motor North America is recalling 9,813 units of the 2023 Ariya electric SUVs due to a software defect in the drive motor's inverter.
6 months ago
Magenta Mobility has appointed Satyen Sail as its new Business Head to grow existing logistics and last-mile delivery operations after receiving a fresh wave of funding.
8 months ago
Indian electric three wheeler dealers have seen double-digit growth in sales in the last two years.
11 months ago
The Mahindra Zor Grand electric three-wheeler will be used at Gul Panag's farmhouse in Mulshi, Maharashtra for transporting goods and farm essentials.
12 months ago
The businessman shared a video of a multi-rider electric passenger car built for busy locations.