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The global e-rickshaw market size was valued at US$ 1.55 Bn in 2023 and is expected to reach US$ 4.11 Bn by 2030, grow at a compound annual growth rate (CAGR) of 14.9% from 2023 to 2030.

E-rickshaws are electric three-wheeler 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.

The e-rickshaw market is segmented by battery type, seating capacity motor power, end user, and region. By battery type, the lithium ion battery segment is expected to grow significantly due to its higher energy density and lighter weight compared to lead acid batteries. Lithium ion batteries also require less maintenance.

E-Rickshaw Market Regional Insights

  • The Asia Pacific market is expected to be the largest market for e-rickshaw, accounting for over 43% of the market share in 2023. The growth of the market in Asia Pacific is attributed to rapid urbanization, rising pollution levels, and large untapped rural markets.
  • North America is expected to be the second-largest market for e-rickshaw during the forecast period, accounting for over 26% of the market share in 2023. The growth of the market in North America is attributed to favorable government subsidies and initiatives promoting sustainable mobility solutions.
  • The Middle East & Africa market is expected to be the fastest-growing for e-rickshaw market, with a CAGR of 14% during the forecast period. The growth of the market in Middle East & Africa is attributed to improving rural connectivity and growing demand for cost-effective transportation.

Figure 1. Global E-Rickshaw Market Share (%), by Region, 2023


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Global E Rickshaw Market: Analyst’s Viewpoint

The e-rickshaw market in India has shown promising growth over the past few years. The low-cost and last-mile connectivity offered by e-rickshaws have helped serve those residing in remote areas. However, a lack of adequate charging infrastructure and high upfront costs continue to restrain widespread adoption. Additionally, a lack of standardization in the design of batteries and electric motors across different manufacturers has also negatively impacted the market.

That said, growing concerns over pollution levels and rising fuel costs have pushed more and more consumers to opt for environment-friendly alternatives. Several state governments now offer subsidies to promote the use of e-rickshaws as well. This could accelerate the market's growth trajectory going forward. Moreover, the increased usage of e-rickshaws for goods delivery is also opening new revenue streams for manufacturers.

From a geographic perspective, northern and eastern regions of India have emerged as early adopters, with states like UP, Bihar, and West Bengal accounting for the bulk of sales. However, growing acceptance in tier-2 and tier-3 cities across central and southern states is expected to boost regional expansion. In the coming years, domestic production is likely to rise as well with several OEMs setting up local manufacturing units.

E-Rickshaw Market Drivers:

  • Supportive Government Regulations and Policies: The government has implemented various policies and initiatives to promote the adoption of e-rickshaws as an eco-friendly mode of transportation. For instance, the Indian government launched the FAME scheme, offering purchase incentives for electric 3-wheelers. Many Indian states provide permits and licenses to e-rickshaw drivers at minimal cost. Countries like Bangladesh, Sri Lanka, Nigeria, and Kenya also provide subsidies and tax exemptions for e-rickshaws. Such supportive policies are aiding market growth.
  • Rising Fuel Prices: The consistent rise in petrol and diesel prices globally over the past decade has increased the cost of operating conventional autorickshaws. On the other hand, e-rickshaws offer nearly 90% savings on fuel costs as electricity is cheaper than liquid fuels. This cost advantage is driving many commercial 3-wheeler operators and fleet owners to switch to e-rickshaws for last-mile connectivity needs.
  • Growth in the E-commerce Industry and Logistics: The boom in the e-commerce sector has led to massive growth in last-mile delivery requirements in urban areas. E-rickshaws provide an efficient and cost-effective mode of transportation and delivery of goods due to their high maneuverability in traffic congested cities. The increasing use of e-rickshaws to meet surging last-mile logistics demand is boosting market growth.
  • Rapid Urbanization in Emerging Economies: Rapid urbanization in emerging economies like India, Indonesia, Nigeria, and Mexico has led to growth in intra-city transportation needs. E-rickshaws have emerged as an integral part of urban mobility owing to their affordability and ability to navigate congested city roads. The elevating urbanization trend, coupled with a lack of adequate public transport, is propelling e-rickshaw adoption in cities.

E-Rickshaw Market Opportunities:

  • Entry in Untapped Rural Markets: E-rickshaws have massive potential for boosting rural connectivity and mobility, given the limitations of public transport in villages. Countries like India have over half a million villages lacking efficient transportation systems. Players can tap into the large untapped rural markets by developing cost-optimized e-rickshaw variants and business models tailored for rural needs.
  • Partnerships with Ride-Hailing and e-Commerce Companies: Strategic tie-ups between e-rickshaw OEMs and ride-hailing platforms like Ola and Uber can increase penetration in urban markets. E-rickshaw manufacturers can also collaborate with e-commerce firms for cargo delivery services. Such partnerships provide opportunities for increasing sales, while ride-hailing firms can expand their fleet with cost-effective e-rickshaws. In December 2023, a consortium of auto rickshaw and taxi drivers from Hyderabad unveiled the introduction of Yaary, a ride-hailing platform similar to Ola and Uber. This service operates on the Open Network for Digital Commerce (ONDC), an e-commerce initiative introduced by the government. With a current fleet of over 20,000 drivers in Hyderabad, Yaary is joining forces with other driver associations across various Indian cities to broaden its footprint. The company's goal is to onboard over 100,000 drivers, catering to an estimated two million customers throughout India within the upcoming six months.
  • Top of Form
  • Advancements in Battery Technologies: Continued advancements in EV battery technology like increased energy density, faster charging capability, and reduced charging times offer opportunities for developing e-rickshaws with higher range and improved performance. Incorporating advanced battery chemicals can enhance vehicle range, reduce operating costs, and drive further adoption.
  • Development of Charging Infrastructure: There is significant scope for developing charging and swapping station networks targeted for e-rickshaws to address range anxiety concerns. Collaborations between fleet operators and infrastructure providers to set up affordable charging solutions can enable expansion into new markets and drive adoption.

E-Rickshaw Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 1.55 Bn
Historical Data for: 2017 to 2021 Forecast Period: 2023 - 2030
Forecast Period 2023 to 2030 CAGR: 14.9% 2030 Value Projection: US$ 4.11 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa:  GCC Countries, Israel,  South Africa, North Africa, and Central Africa and Rest of Middle East
Segments covered:
  • 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 and Goods Carrier
Companies covered:

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., NDS Eco Motors Private Limited, Goenka Electric Motor Vehicles Private Limited, Sarthak Industries, Perfexorld, V.H.V.O Industries Pvt. Ltd, Mini Metro EV LLP, Pariti, Kinetic Green Energy & Power Solutions Ltd., A G INTERNATIONAL PVT LTD

Growth Drivers:
  • Supportive Government Regulations and Policies
  • Rising Fuel Prices
  • Growth in E-commerce Industry and Logistics
  • Rapid Urbanization in Emerging Economies
Restraints & Challenges:
  • High Upfront Purchase Cost
  • Lack of Standardization in Products
  • Safety and Regulatory Concerns

E-Rickshaw Market Trends:

  • Introduction of Connected and IoT-Enabled E-Rickshaws: Several original equipment manufacturers (OEMs) are launching IoT-enabled e-rickshaw models with smart features like Global Positioning System (GPS), remote tracking, sensors, data analytics, etc. These trends allow for monitoring driver behavior, geo-fencing, predictive maintenance, and fleet optimization. Market Players are also integrating payment systems and partner apps into vehicle dashboards.
  • Product Development for Cargo Segment: Rising demand for last-mile logistics has led OEMs to develop specific e-rickshaw variants for cargo delivery with increased loading capacity and safety enhancements. Custom models are being designed for food delivery, e-commerce transportation, and garbage collection applications. Cargo segment contributed to a major chunk of industry sales.
  • Rising Penetration in the Fleet Market: Large-scale adoption is seen in the fleet market as e-rickshaw manufacturers collaborate with fleet operators providing transportation and logistics services in Tier II and III cities. OEMs offer customized fleet solutions with financing support, training drivers and providing charging infrastructure.
  • Launch of Premium and Luxury Models: Several launches of premium e-rickshaws targeted at tech-savvy consumers in urban markets cater to rising demand for comfort and stylized vehicles. Luxury models feature amenities like onboard navigation, entertainment systems, swivel seats, adjustable seats, CCTV cameras, etc. Premium models account for a considerable market share. In August 2023, Mahindra Last Mile Mobility (LMM), a branch of Mahindra & Mahindra, introduced its newest electric three-wheeler for passengers, named the Mahindra e-Alfa Super, priced at Rs 1.61 lakh (excluding showroom costs).

E-Rickshaw Market Restraints:

  • High Upfront Purchase Cost: Despite government subsidies, e-rickshaws have a relatively high upfront cost compared to ICE auto-rickshaws. This limits adoption among low-income drivers and owners who prefer buying conventional vehicles at lower price points. Bringing down costs through localized production and economies of scale is a key challenge. However, electric rickshaws benefit from reduced fuel costs, as electricity is cheaper than gasoline or diesel, and they also have fewer moving parts, potentially leading to lower maintenance costs. This can result in substantial savings over the vehicle's lifetime, effectively offsetting the higher initial purchase price.
  • Lack of Standardization in Products: The e-rickshaw market is highly fragmented with multiple regional players. Lack of standardization in product design, specifications, and components used leads to quality issues. Non-standardization also causes problems in maintenance and sourcing spare parts. Establishing nationwide standards will enable higher product quality. However, regional variations might allow for a more adaptable and flexible approach, as different areas might have distinct infrastructural or consumer demands. While standardization can streamline processes like maintenance and parts sourcing, it's essential to strike a balance. Over-standardization might stifle innovation, limit consumer choices, and overlook unique regional nuances. Thus, while there are undeniable advantages to establishing some level of nationwide standards, it's crucial to approach this with consideration for preserving the benefits that regional diversity and competition bring to the table.
  • Safety and Regulatory Concerns: Issues around vehicle safety, a lack of mandatory testing protocols for components, and a lack of driver training have led to the banning of e-rickshaws in some cities. Lack of clarity in regulations and compliance requirements acts as a barrier to new geographical expansion. Formulating national level regulations and safety standards is vital. On the other side, there is an opportunity for significant improvement and industry advancement. Implementing rigorous nationwide regulations and safety protocols could provide a framework for enhancing e-rickshaw security and reliability. This would not only address the main safety issues but also foster consumer confidence and acceptance of e-rickshaws.

Recent Developments

New product launches

  • In November 2023, Lohia Auto Industries Ltd, a leading producer of electric two-wheelers and three-wheelers, is strategically gearing up to introduce high-speed scooters and fresh models of passenger-carrying three-wheelers. With ambitions to broaden its dealership network, the company foresees a surge in sales, aiming to capitalize on economies of scale and subsequently lower its overall expenses.
  • In January 2022, Omega Seiki Mobility is an end-to-end mobility solutions provider, launched electric cargo 3-wheelers Stream and Rage+. The vehicles have a range of up to 250 km on a single charge. This strengthened the company's position in the e-rickshaw cargo segment.
  • In June 2022, Nunam, an Indo-German non-profit startup, announced plans to introduce three electric rickshaws equipped with repurposed batteries from Audi’s e-tron test vehicles into the Indian market through a pilot initiative. The objective of this project is to empower women in India by providing them with access to these electric rickshaws, thus enhancing their employment prospects.

Acquisition and partnerships

  • In February 2022, Euler Motors building electric commercial three wheeler vehicle manufacturers, partnered with Three Wheels United is a tech-enhanced financier for light electric vehicles, for financing and promoting adoption of Euler electric 3-wheelers. This partnership aims to accelerate EV adoption among drivers through easy financing.
  • In March 2021, Lithium Urban Technologies is a business that accelerates sustainability, by bringing solutions to the marketplace, acquired smart electric rickshaw company SmartE. This acquisition strengthened Lithium's position in EV fleet operations across India.
  • In February 2022, Oye Rickshaw!, which is recognized as a leading and rapidly expanding electric vehicle mobility operator in India, entered into a collaboration with RevFin, a FinTech company known for its sophisticated digital lending platform. This partnership is aimed at facilitating finance options for the e-rickshaw batteries for drivers associated with Oye Rickshaw!’s Energy network, making loan acquisition for electric vehicles more straightforward and accessible for them.

Figure 2. Global E-Rickshaw Market Share (%), by Motor Power, 2023


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Top companies in E-Rickshaw Market

  • 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.
  • NDS Eco Motors Private Limited
  • Goenka Electric Motor Vehicles Private Limited
  • Sarthak Industries
  • Perfexorld
  • V.H.V.O Industries Pvt. Ltd
  • Mini Metro EV LLP
  • Pariti
  • Kinetic Green Energy & Power Solutions Ltd.

Definition: The e-rickshaw market refers to the industry and ecosystem involved in the manufacturing, sales, and usage of electronic 3-wheeler vehicles, commonly known as e-rickshaws. E-rickshaws are battery operated vehicles used for the last-mile transportation of passengers and goods in urban, semi-urban, and rural areas.

Frequently Asked Questions

High upfront purchase cost, lack of standardization in products, and safety and regulatory concerns are the key factors hampering growth of the E Rickshaw Market.

Supportive government policies and subsidies, Rising fuel prices, Growth in E-commerce Industry and Logistics, and Rapid Urbanization in Emerging Economies are the major factors driving the E Rickshaw Market growth.

Up to 1000W segment is the leading component segment in the e-rickshaw market owing to the critical role played by batteries in vehicle performance.

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.

Asia Pacific is expected to dominate the e-rickshaw market owing to high adoption in India and other South Asian countries like Bangladesh and Sri Lanka.

The e-rickshaw market is projected to grow at a CAGR of around 14.9% from 2023 to 2030.

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