US$446 subsidy for e-rickshaw

Backed by government incentives, the Indian electric rickshaw market is estimated to witness a sale of 935.5 thousand vehicles by 2024, according to a report by ResearchAndMarkets.

The market has seen significant growth in the recent past owing to rising government incentives, environmental awareness, and implementation of stringent regulations to control air pollution.

In addition, the increasing affordability of e-rickshaws and a relative increase in investments by manufacturers for the designing and development of more efficient and affordable variants are estimated to boost the market growth.

Passenger carrier and load carrier are the two categories when the Indian electric rickshaw market is segmented on the basis of vehicle type. Of these, passenger carriers dominated the market in 2018, accounting for over 95.0% revenue share and are expected to continue holding the larger share in the near future as well. The reason for their dominance would be the growing requirement for public transportation, rising demand for low-cost shared mobility, and the increasing urban population in the country.

E-rickshaws with 1,000-1,500 W motor power held the largest share in the Indian electric rickshaw market in the past. A large number of e-rickshaws in the country are equipped with a 1,000-1,500 W motor, as it provides benefits in the form of low operational costs. However, with increasing demand for quality products and the entry of organized players, the demand for vehicles with higher motor power is predicted to increase in the future.

Similarly, e-rickshaws with a battery capacity less than 101 Ah led the Indian electric rickshaw market in the historical period. The reason for this was the market monopoly of unorganized local players, most of whom manufacture low-cost e-rickshaws with less-than-101-Ah battery capacity. Coming to the battery type, the SLA battery is presently preferred as these are initially cheaper than Li-ion ones. But, manufacturers are increasing the installation of Li-ion batteries, as SLA variants are harmful if not disposed of properly.

Specifically talking about the Indian electric rickshaw market on a regional ground, Delhi held the largest share in 2018. It is a major market, where sales picked up rapidly after 2013. Due to the increasing levels of air pollution in the capital, the state government announced a US$446 subsidy on the procurement of such rickshaws in 2016, leading to an increase in their demand, which further pushed the market growth.

The Indian electric rickshaw market is currently dominated by small, unorganized local players, who together registered around 85.0% of the total e-rickshaw sales in 2018.

The major market players include Kinetic Green Energy and Power Solutions Ltd, Terra Motors Corporation, Lohia Auto Industries, Hero Electric Vehicles Pvt Ltd, Saera Electric Auto Pvt Ltd, and Clean Motion India. fiinews.com