E-RICKSHAW MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

E-Rickshaw Market Size and Forecast – 2025 to 2032

The global e-rickshaw market size was valued at USD 2.16 Bn in 2025 and is expected to reach USD 5.79 Bn by 2032, grow at a compound annual growth rate (CAGR) of 15.1% from 2025 to 2032.

Key Takeaways

• By Battery Type, Lead Acid acquired the prominent share of 50% in 2025 as cost-effectiveness.
• By Seating Capacity, 4-seater hold the largest market share in 2025 owing to its high demand for last-mile connectivity.
• By Motor Power, up to 1000W dominates the overall market share in 2025 owing to the high demand in rural and tier-2/tier-3 markets.
• By End User, Passenger Carrier hold the largest market share in 2025 owing to high demand for affordable last-mile transportation.
• By Region, Asia Pacific dominates the overall market with an estimated share of 43% in 2025 owing to the high demand for low-cost urban and semi-urban transport.

Market Overview

E-rickshaws are electric vehicles used for public transportation. They provide an eco-friendly, convenient, and cost-effective mode of last-mile connectivity. The key drivers of the e-rickshaw market include supportive government initiatives, rising fuel costs, and rapid urbanization.

Current Events and their Impact on the E-Rickshaw Market

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End-user Feedback and Unmet Needs in the E-Rickshaw Market

• Comfort and Ride Quality: End-users often report that E-rickshaws lack adequate suspension and seating comfort, leading to rough rides on uneven roads. Improving shock absorption and ergonomic design is a key unmet need, especially for passenger-focused models where comfort directly impacts user satisfaction and repeat ridership.
• Battery Life and Reliability: Many drivers express concerns over the short lifespan and inconsistent performance of lead-acid batteries. Longer-lasting, reliable battery solutions with faster charging times are needed to reduce downtime and operational costs, helping drivers maximize daily earnings without frequent battery replacements.
• Maintenance and Service Support: Users highlight limited availability of affordable and skilled service centers, causing delays and high repair costs. Expanding service networks with trained technicians and affordable spare parts would enhance vehicle uptime and customer confidence, particularly in rural and semi-urban markets.

Price Segments Overview

1. Entry-Level (₹60,000 – ₹1.2 Lakh)
   • Basic models ideal for first-time buyers and rural markets.
   • Typically equipped with modest 1,000 W motors and lead-acid batteries.
   • Usual range: ~60–80 km per charge.
2. Mid-Range (₹1.3 Lakh – ₹2.5 Lakh)
   • Offers durable build, stronger motors (1.2–1.5 kW), and optional lithium-ion batteries.
   • Enhanced features include enclosed cabins, improved suspension, and better safety.
3. Premium (₹2.5 Lakh and above)
   • Designed by established automotive brands with top-grade safety, features, and tech.
   • Incorporate lithium-ion packs, digital dashboards, GPS, and longer range (120–180 km).
4. Ultra-Premium Segment (SUV‑level pricing)
   • Models like Bajaj RE E‑TEC 9.0 and Mahindra Treo Plus are priced around ₹3.7–3.8 Lakh.
   • Offer superior range (~150–178 km), power, and build quality.

Segmental Insights

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E-Rickshaw Market Insights, By Battery Type - Lead Acid contribute the highest share of the market owing to its availability of local manufacturing

Lead Acid acquired the prominent share of 50.0% in 2025. Low cost, wide availability, and a strong manufacturing and recycling network drive the demand for lead-acid batteries in the E-rickshaw market. Small-scale operators prefer these batteries due to their affordability, especially in cost-sensitive regions. Their simple technology enables users to maintain and replace them easily, making them suitable for both urban and rural areas. Although they have a shorter lifespan than lithium-ion options, users continue to adopt them widely because of their accessibility and compatibility with existing E-rickshaw models.

In January 2025, Urja Mobility launched a B2C battery leasing program for e-rickshaw drivers in ten Indian cities, offering affordable monthly payments for high-performance Lithium-Ion batteries, with an option to own after 12 to 24 months. Such initiatives are proliferating the e-rickshaw market demand.

E-Rickshaw Market Insights, By Seating Capacity - 4-Seater contribute the highest share of the market owing to its increased urbanization & traffic congestion

Urban and semi-urban commuters increasingly choose 4-seater E-rickshaws for their affordability and efficiency in passenger transport. These vehicles serve as a practical solution for last-mile connectivity in cost-sensitive areas. Their compact design helps drivers navigate narrow streets and congested traffic with ease. Operators favor them for their ability to carry more passengers, which enhances daily income. Government policies, along with low operating expenses and rising interest in clean mobility, continue to drive the adoption of 4-seater E-rickshaws across various regions.

E-Rickshaw Market Insights, By Motor Power - Up to 1000W contribute the highest share of the market owing to its ease of licensing and regulation

Affordability, energy efficiency, and suitability for short-distance travel drive the demand for E-rickshaws with up to 1000W motor capacity. Operators prefer these low-power models because they consume less electricity, reducing daily operating costs in rural and semi-urban areas. Their simple design enables easy maintenance, attracting small-scale operators and first-time buyers. Minimal licensing requirements in some regions further encourages adoption. Drivers use these vehicles as practical solutions for light passenger and cargo transport where speed is less important. For instance, Hero Electric, a leading name in electric two-wheelers in India, has launched its highly anticipated electric rickshaw, Raahii. The vehicle comes equipped with a 1000W motor, a 220V 50Hz SMPS-based charger, a 12V 100AH battery, and a 55A 36MOSFET controller, delivering unmatched performance in its category.

E-Rickshaw Market Insights, By End-User - Passenger Carrier contribute the highest share of the market owing to its livelihood generation & self-employment

High demand for affordable and convenient last-mile transportation in urban and semi-urban areas drives the passenger carrier segment. Drivers prefer these vehicles because their low operating costs and easy maintenance help maximize daily earnings. Governments actively support this segment by providing subsidies and promoting clean energy policies. The growing urban populations and worsening traffic congestion increase the need for compact, efficient, and eco-friendly passenger transport, making E-rickshaws a popular choice among commuters and operators. For instance, in January 2024, Hyderabad-based EV start-up ZERO21 introduced Project Gagan, an initiative designed to transform passenger auto-rickshaw mobility in India. The company stated that Project Gagan supports its broader mission to promote sustainable living and aims to bring 100,000 electric autos on the road over the next five years, either through retrofitting existing vehicles or exchanging them for new electric models.

Regional Insights

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Asia Pacific E-Rickshaw Market Trends

Asia Pacific dominates the overall market with an estimated share of 43% in 2025. The increasing urbanization and rising demand for affordable, eco-friendly transportation drive rapid growth in the Asia Pacific E-rickshaw market revenue. Governments promote electric mobility by offering subsidies and implementing favorable policies, encouraging widespread adoption. Advances in battery technology and the expansion of charging infrastructure improve vehicle performance and convenience. The growing informal transport sector and the need for efficient last-mile connectivity in congested cities further boost market expansion. Local manufacturers produce cost-effective models, supporting broad acceptance in both urban and rural areas. For instance, in August 2025, Bajaj Auto introduced its new brand, Riki, to enter the electric rickshaw segment. It will begin sales in four markets, with a phased rollout scheduled for the coming quarters.

North America E-Rickshaw Market Trends

Sustainable urban mobility and niche commercial applications drive the emerging North America E-rickshaw market. Unlike in Asia-Pacific, customers here focus on eco-friendly last-mile delivery, tourism, and campus transportation instead of mass public transit. Strict environmental regulations and rising consumer awareness encourage adoption. Companies enhance operational efficiency by integrating advanced technologies like IoT and GPS tracking. Although limited charging infrastructure and higher vehicle costs create challenges, increasing investments and pilot programs support steady market growth, distinguishing it from more mature, high-volume markets elsewhere. For instance, Made-in-India rickshaws are heading to the USA, as BILITI Electric, a U.S.-based electric vehicle manufacturer, has launched the GMW Taskman—an electric three-wheeler built in India featuring battery swap technology for last-mile cargo delivery. The launch coincides with the ongoing Los Angeles Auto Show.

India E-Rickshaw Market Trends

Affordability and strong government support through subsidies and favorable policies drive widespread adoption of e-rickshaw. Unlike North America’s focus on niche applications, India’s market thrives on mass use for passenger transport and last-mile connectivity across urban and rural areas. Lead-acid batteries dominate, and a large informal driver base distinguishes India’s market, while growing interest in lithium-ion technology signals a gradual transition. Local manufacturers produce cost-effective models that further accelerate rapid e-rickshaw market growth. For instance, in June 2025, Battery Smart and Delhi Police unveiled an e-rickshaw safety campaign, training over 100 drivers on traffic regulations, battery safety, and monsoon precautions to promote safer urban mobility and encourage electric vehicle adoption.

Japan E-Rickshaw Market Trends

Manufacturers in Japan focus on producing compact, lightweight electric vehicles tailored for elderly mobility and small-scale cargo transport, distinguishing their market from larger passenger-focused markets like India. They emphasize safety, advanced technology, and environmental sustainability by integrating smart features such as autonomous driving assistance and IoT connectivity. Strict regulations and high consumer expectations drive innovation and quality. Limited gaps in public transport result in niche adoption in urban and suburban areas, as manufacturers target convenience and accessibility for aging populations instead of mass transit solutions.

Market Report Scope

E-Rickshaw Market Trend

• Growing Demand for Last-Mile Connectivity

The surge in urbanization and traffic congestion fuels demand for E-rickshaws as efficient last-mile transport solutions. They offer affordable, eco-friendly alternatives to traditional autos and taxis, especially in densely populated cities. This trend highlights the importance of compact, maneuverable vehicles that can navigate narrow streets and provide quick, accessible rides for daily commuters, strengthening E-rickshaws’ role in urban mobility ecosystems worldwide.

E-Rickshaw Market Opportunity

• Expansion in Rural and Semi-Urban Areas

Rural and semi-urban regions offer significant opportunities for E-rickshaws due to limited public transport and growing demand for affordable mobility. These areas benefit from low operating costs and ease of maintenance, making E-rickshaws attractive for daily commuting and small cargo delivery. Manufacturers and operators can tap into these underserved markets by offering customized models suited for rougher terrains and longer travel distances, creating new revenue streams beyond congested urban centers.

E-Rickshaw Market News

• In April 2025, the Maharashtra government launched the Pink E-Rickshaw Scheme to empower women and support their financial independence. Deputy Chief Minister Ajit Pawar officially launched the scheme at an event in Pune, where selected beneficiaries received electric three-wheelers.
• In March 2025, The Uttar Pradesh Transport Department will launch a statewide crackdown on illegal e-rickshaws. The transport commissioner has directed all district magistrates, police commissioners, and senior superintendents of police to enforce the drive strictly.
• In December 2024, ZELIO Ebikes entered the e-rickshaw segment by launching its first models, the Tanga Butterfly and Tanga SS. It has priced the Tanga Butterfly at INR 1,45,000 and the Tanga SS at INR 1,40,000 (ex-showroom). The company had earlier showcased these models at the EV India Expo 2024 in New Delhi.

Analyst Opinion (Expert Opinion)

• The E-rickshaw market, particularly in South Asia, is not merely a passing trend but a transformative force reshaping urban mobility for the lower and middle-income segments. However, the industry is at a critical juncture where survival hinges on addressing core challenges rather than relying on superficial growth narratives.
• The persistent reliance on lead-acid batteries—a technology that accounts for over 90% of India’s E-rickshaw fleet—remains a major bottleneck. These batteries, while cheap, limit vehicle range and lifespan, burdening operators with frequent replacements and downtimes. For example, a typical lead-acid battery pack requires replacement every 12-18 months, driving up operational costs disproportionately. The slow shift towards lithium-ion batteries, which currently represent less than 10% of the market, reflects an industry hesitant to innovate beyond short-term affordability.
• The market’s fragmentation and lack of stringent regulation exacerbate quality and safety concerns. Despite over 1.5 million E-rickshaws operating in India alone, there is no uniform standard governing vehicle manufacturing or driver licensing. This chaotic ecosystem fuels frequent accidents and vehicle failures, undermining consumer trust. Contrast this with China’s stringent EV regulations, where standardized safety protocols and certification have boosted consumer confidence and technology adoption.

Market Segmentation

• By Battery Type
  • Lead Acid
  • Lithium Ion
  • Others
• By Seating Capacity
  • 2 Seater
  • 4 Seater
  • 6 Seater
  • 8 Seater
  • Others
• By Motor Power
  • Up to 1000W
  • 1000W-1500W
  • Above 1500W
• By End User
  • Passenger Carrier
  • Goods Carrier
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Mahindra Electric Mobility Limited
  • Saera Electric Auto Pvt. Ltd.
  • Telco E-Vehicles Pvt. Ltd.
  • Gamma Industries
  • Knox Fuels Tech
  • Yuva E-Rickshaw
  • ATUL Auto Limited
  • Bajaj Auto Limited
  • J.S. AUTO (P) LTD.
  • Speego Vehicles Co Pvt Limited
  • Dilli Electric Auto Pvt. Ltd.

Sources

Primary Research Interviews

• E-rickshaw manufacturers
• Battery suppliers
• Fleet operators
• Government officials
• End-users/drivers

Databases

• Government transport and energy databases
• Vehicle registration databases
• Patent databases
• Electric vehicle charging infrastructure databases

Magazines

• Electric & Hybrid Vehicle Technology Magazine
• Automotive Manufacturing Solutions
• Renewable Energy World
• E-Mobility Magazine

Journals

• Journal of Cleaner Production
• Transportation Research Part D Transport and Environment
• Energy Policy Journal
• International Journal of Sustainable Transportation

Newspapers

• The Times of India
• The Hindu Business Line
• South China Morning Post
• The Straits Times
• The Guardian (Environment section)

Associations

• Society of Indian Automobile Manufacturers (SIAM)
• Electric Vehicle Association of Asia Pacific (EVAAP)
• International Association of Public Transport (UITP)
• National Electric Mobility Mission (NEMM) India

Public Domain Sources

• Government policy papers
• National Electric Mobility Mission reports
• World Bank transport and environment datasets
• UN Environment Programme publications
• Patent filings

Proprietary Elements

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years