India eRickshaw Market 2020-2025
The market for eRickshaws to reach close to a million units by FY25 owing to a revival of public transportation and tourism, demand from tier 1 & 2 cities, growing replacement demand, and an increase in penetration of vehicle financing. These will go a long way in shaping the future of eRickshaws in the country such that the market has the potential to be fully electrified by 2030.
The evolving eRickshaw market in India is expected to witness increasing changes in the next 5 years driven by a myriad of factors. The country’s urban mobility modal is largely dominated by two and three wheelers (2Ws & 3Ws) , which account for close to a 50% share. With the advent of more public transport initiatives, the modal share of last-mile modes like 3Ws is likely to rise in key urban centers.
Urbanization, increasing levels of pollution, climate change challenges, growth in new mobility solutions such as ride sharing services, and the emergence of innovative last-mile solutions have propelled a shift from internal combustion engine (ICE) driven vehicles to eRickshaws.
In addition, electrification in India is likely to be driven by government incentives; growing need for clean, shared and public transportation; and the lower operational cost of electric vehicles (EVs). The Government of India (GOI) has initiated regulatory measures to drive this transformation to electric solutions in the 3W segment. This has prompted OEMs to look at innovative solutions within this space.
The eRickshaw market faces various challenges. Inadequate charging infrastructure, coupled with frequent charging issues, high battery replacement costs, poor build quality, and moderate battery life are some of the primary concerns that need to be addressed.
For instance, the market is suffering from range anxiety issue where a concern persists whether the vehicle would have sufficient range to reach its destination. Various stakeholders in the ecosystem are working towards addressing major issues with a focus on 2030.