Electric Rickshaw Market Size, Share, Industry Analysis, Trends, Growth, 2032

Electric Rickshaw Industry Prospective:

The global electric rickshaw market size was worth around USD 1,062.40 million in 2023 and is predicted to grow to around USD 2,739.90 million by 2032 with a compound annual growth rate (CAGR) of roughly 11.10% between 2024 and 2032.

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Electric Rickshaw Market: Overview

Electric rickshaws (e-rickshaws) are three-wheeled vehicles that are powered by energy-storing electric batteries. E-rickshaws run on motors with power capacity that ranges between 650 to 1,400 watts unlike electric cars or commercial vehicles that are known to have stronger battery packs. The fuel cost of electric rickshaws is considerably lower than auto rickshaws. They also offer greater mobility and hence have become widely popular in some parts of the world. The primary manufacturing of electric rickshaws occurs in Asian regions such as China, India, Nepal, and Bangladesh. Electric rickshaws are also known as electric tuk-tuks and operate on the electric propulsion principle.

Thus, electric rickshaws completely eliminate the need to use fuel such as diesel and gasoline. The primary system deployed in electric rickshaws is regenerative braking technology. Electric tuk-tuks have to be regularly charged for proper functioning. Essential information to the driver is provided through instrumentation and a control panel including indicators such as odometer, speed, battery level, and other critical components. The four main components of an electric rickshaw are the chassis, wheel & differential mechanism, motor, and electrical system. During the forecast period, the industry for electric rickshaws is expected to generate high revenue in certain parts of the world.

Key Insights:

• As per the analysis shared by our research analyst, the global electric rickshaw market is estimated to grow annually at a CAGR of around 11.10% over the forecast period (2024-2032)
• In terms of revenue, the global electric rickshaw market size was valued at around USD 1,062.40 million in 2023 and is projected to reach USD 2,739.90 million by 2032.
• The market is projected to grow at a significant rate due to the growing demand for effective public transport systems.
• Based on seating capacity, the 4-seater segment predicted to show a maximum market share
• Based on end-users, the global market will be dominated by the passenger carrier segment.
• On the basis of region, Asia-Pacific will dominate the global market during the forecast timeframe.

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Electric Rickshaw Market: Growth Drivers

Growing demand for effective public transport systems to drive the market demand rate

The global electric rickshaw market is expected to grow due to the rising demand for cost-effective public transport systems. Electric rickshaws do not consume fuel. They are powered by batteries and hence considered cost-efficient. In addition to this, the recent Russia-Ukraine war has led to fuel price fluctuations in several parts of the world. Hence electric rickshaws offer insulation to rickshaw drivers from price changes and volatility. Public transport systems are the backbone of the transportation industry. However, there is a lack of efficient transportation solutions for the general public.

In addition to this, commercial vehicles that run on fuel also lead to severe environmental pollution. As per the US Environmental Protection Agency (EPA), more than 29% of the greenhouse gas emissions in the US are caused by the transport industry. This has led to governments seeking sustainable transport units such as electric vehicles that do not emit any form of harmful gas and showcase limited reliance on non-renewable fuel.

Regional governments are offering tax subsidies to e-rickshaw drivers along with other promotional campaigns to encourage more buyers to opt for electric versions of rickshaws. In September 2023, the Uttar Pradesh government of India announced that e-buses and e-rickshaws will soon be available at all essential tourist spots in the region. In August 2023, the Indian government approved USD 7 billion for electrification of the regional public transport.

Rising concerns over pollution caused by traditional fuel-run vehicles will drive more customers toward electric rickshaws

The traditional e-rickshaw industry is one of the top-ranking environment-polluting sectors. This is especially applicable to aged or older rickshaws. In addition to this, the traditional rickshaws do not offer space efficiency. Electric rickshaws are not only environmentally friendly but they also offer larger space and can be used for seating more passengers. The global electric rickshaw market is expected to benefit from the growing congestion caused by traditional rickshaws.

Electric Rickshaw Market: Restraints

Limited application of the rickshaws and selective consumption in certain countries will restrict the market expansion rate

The global industry for electric rickshaws is expected to be restricted due to the limited application of the rickshaws in general when used for public transport. Electric rickshaws cannot be used over longer routes. They are ideal for short distances, especially the rickshaws designed for transporting people. The maximum average distance that can be covered through an electric rickshaw is between 50 to 80 kilometers.

In addition, the cost of replacing dead batteries can be high. Lithium-ion batteries have to be replaced between 4 to 6 years while lead acid batteries have to be replaced between 1.5 to 3 years as per market research.

Electric Rickshaw Market: Opportunities

Growing innovation in the field of e-rickshaws to help the market expand further

The global electric rickshaw market is expected to generate high growth opportunities owing to the increasing launch of new offerings in the commercial market. The industry players are actively developing new technologies to be used in e-rickshaws for automotive vehicles to attain higher performance value. In 2024, Ola, India’s leading multinational ridesharing company which has recently entered the electric two-wheeler segment, announced the launch of a new range of e-rickshaws under the brand name Raahi.

The company will now compete with other more established players in the industry Mahindra Treo, Bajaj RE, and others. In August 2023, Mahindra announced the launch of a new range of electric three-wheelers. The new launch is being termed as the utilitarian workhorse and is named e-Alfa Super.

Rising investments in the development of new production facilities will be helpful in generating higher revenue

The market for electric rickshaws will be positively impacted by the growing development in the construction of new manufacturing facilities. In February 2023, electric vehicle firm Omega Seiki Mobility (OSM), announced investments toward the construction of new electric trucks in Bangladesh. Such measures will encourage e-rickshaw makers to invest more in robust manufacturing centers in the coming years.

Electric Rickshaw Market: Challenges

Lack of efficient infrastructure to support the smooth running of e-rickshaws will challenge the market expansion rate

The global electric rickshaw market will be challenged by the lack of efficient infrastructure that supports the smooth deployment of e-rickshaws. Emerging nations do not have sufficient charging stations thus e-rickshaw operators have to be careful when operating the vehicle over long distances. Additionally, the cost of electric rickshaws is significantly higher as compared to traditional rickshaws. The high competition from the conventional rickshaw segment will impact the adoption of electric counterparts.

Electric Rickshaw Market: Segmentation

The global electric rickshaw market is segmented based on seating capacity, battery type, end-user, and region.

Based on seating capacity, the global market segments are 8-seater, 6-seater, 4-seater, 3-seater, 2-seater, and others. The highest demand was observed in the 4-seater segment. A typical electric rickshaw offers comfortable seating for at least 3 passengers and the fourth seat is reserved for the driver. 4 seaters are used extensively as public transport systems over short distances. The fair prices for electric rickshaws are considerably lower as compared to traditional rickshaws.

Based on battery type, the global electric rickshaw industry is divided into lithium-ion, lead acid, and others.

Based on end-users, the global market segments are goods carriers and passenger carriers. In 2023, the highest demand was observed in the passenger carrier segment. Electric rickshaws offer an easily accessible mode of transportation. In 2023, more than 590,000 electric rickshaws were sold in India. The goods carrier electric rickshaws have limited application since the segment faces tough competition from other alternatives including e-trucks meant for transporting specific weights.

Electric Rickshaw Market: Report Scope

Electric Rickshaw Market: Regional Analysis

Asia-Pacific to register the highest growth rate during the projection period

The global electric rickshaw market will be dominated by Asia-Pacific during the projection period. The region is the largest producer and consumer of electric rickshaws. Regions such as India, China, Bangladesh, and Pakistan have long used rickshaws for transporting goods and people. These three-wheeled vehicles offer several benefits for the congested roads in these countries. They are compact vehicles and can easily carry 3 to 4 passengers navigating heavy traffic areas. In addition to this, rickshaw fairs are considerably cheaper as compared to other modes of public transport. India is the world’s largest consumer of rickshaws.

Currently, more than 8 million rickshaws are operating in the country. This has led to the regional government undertaking several initiatives to promote the adoption of electric rickshaws in a bid to curb the increasing pollution in the country along with deploying sustainable public transport systems. In January 2024, Uber India announced the launch of e-rickshaw services in the Ayodhya region of India. The company is planning expansion in the coming years. In August 2023, Saera Electric and Keto Motors in India announced a joint venture through which the companies will launch 6 new electric rickshaws.

Electric Rickshaw Market: Competitive Analysis

The global electric rickshaw market is led by players like:

• Kinetic Green Energy and Power
• vSolutions Ltd.
• Mahindra Electric Mobility Limited
• Mayuri E-Rickshaw Pvt. Ltd.
• Lohia Auto Industries
• Shenzhen Baoya New Energy Vehicle Co. Ltd.
• Piaggio Vehicles Pvt. Ltd.
• Omega Seiki Mobility Pvt. Ltd.
• Terra Motors Corporation
• Changli Electric Vehicle Co. Ltd.
• Hero Electric Vehicles Pvt. Ltd.
• Gayam Motor Works Pvt. Ltd.
• Saera Electric Auto Pvt. Ltd.
• Soni E Vehicle Pvt. Ltd.
• Electrotherm (India) Limited.

The global electric rickshaw market is segmented as follows:

By Seating Capacity

• 8-Seater
• 6-Seater
• 4-Seater
• 3-Seater
• 2-Seater

By Battery Type

• Lithium-Ion
• Lead Acid

By End-User

• Goods Carrier
• Passenger Carrier

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa