The Indian e-rickshaw market is estimated to be worth USD 1.4 billion in 2023. The market is expected to grow at a CAGR of 10.7% during 2023-2030. The Indian e-rickshaw market is segmented by end user, battery type, battery capacity, and state.
- End user: The market is segmented into passenger carriers and goods carriers. Passenger carriers are the larger segment, accounting for over 90% of the market share.
- Battery type: The market is segmented into lithium-ion and lead-acid batteries. Lithium-ion batteries are the more expensive option, but they offer longer range and better performance. Lead-acid batteries are less expensive, but they have shorter range and lower performance.
- Battery capacity: The market is segmented into up to 3 kWh and more than 3 kWh batteries. Batteries with capacity of more than 3 kWh are the more popular option, as they offer longer range.
- State: The market is segmented by state, with Uttar Pradesh, Delhi, and Bihar being the leading states.
The growth of the e-rickshaw market in Uttar Pradesh and other states is being driven by several factors, including the state’s large population, the rising demand for last-mile transportation, and the government’s focus on promoting electric vehicles. The state government has offered several incentives to promote the use of e-rickshaws, including subsidies for the purchase of e-rickshaws and tax breaks for e-rickshaw operators.
Understanding Market Size: Top-Down vs Bottom-Up Approach:
The top-down and bottom-up approaches are two different ways to estimate the market size of the e-rickshaw industry in India. Both approaches have their advantages and disadvantages. The top-down approach is more accurate, but it is also more difficult to implement. The bottom-up approach is less accurate, but it is easier to implement.
Ultimately, the best approach to use will depend on the specific needs of the organization. If the organization needs a very accurate estimate of the market size, then the top-down approach is the best option. If the organization needs a quick and easy estimate of the market size, then the bottom-up approach is the best option.
Major Players in India:
Mahindra Electric is still the leading player in the e-rickshaw market in India, with a market share of 22%. Terra Motors has increased its market share to 17%, while Saera Electric has maintained its market share of 11%. Hero Electric has also maintained its market share of 11%. Atul Auto has seen a slight decrease in its market share to 11%. The remaining 28% of the market is shared by a few other smaller players.
The e-rickshaw market in India is growing rapidly, and the market share of the major players is expected to change in the coming years. Mahindra Electric is well-positioned to maintain its leadership position in the market, as it has a strong brand name and a wide distribution network. Terra Motors is also well-positioned to grow its market share, as it has a strong focus on exports. Saera Electric and Hero Electric are also expected to grow their market share in the coming years.
Here are some of the factors that are driving the growth of the e-rickshaw market in India in 2023:
- The government’s continued support for the e-rickshaw industry: The Indian government has continued to support the e-rickshaw industry in 2024, with a number of policies that have helped to boost demand for e-rickshaws. These policies include subsidies for the purchase of e-rickshaws and tax breaks for e-rickshaw operators.
- The increasing awareness of the environmental benefits of e-rickshaws: The environmental benefits of e-rickshaws are becoming increasingly well-known, and this is driving demand for e-rickshaws. E-rickshaws produce zero emissions, which makes them a much more environmentally friendly option than traditional rickshaws or cars.
- The growing demand for last-mile transportation: The demand for last-mile transportation is growing rapidly in India, as more and more people are using e-rickshaws to get around. This is because e-rickshaws are a convenient and affordable way to get around, especially in crowded cities.
Overall, the e-rickshaw market in India is a promising market with a lot of potential for growth. The major players in the market are well-positioned to capitalize on this growth.
