by E-Rickshaws or battery-powered three-wheelers have gained immense popularity in urban as well as rural areas of India as an affordable and eco-friendly mode of transportation. E-Rickshaws offer a efficient solution for short distance commutes and last-mile connectivity. They have a higher carrying capacity compared to conventional e-rickshaws and can accommodate 6-8 passengers comfortably. In addition, they are easy to operate, emit zero carbon emissions and have lower maintenance costs than diesel rickshaws. Coupled with incentives provided by the central government like subsidies on purchase of e-rickshaws, this has triggered their adoption across the country.
The global E-Rickshaw Market is estimated to be valued at US$5.88 Billion in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the e-rickshaw market is the increasing focus of manufacturers on design and technological innovations. Various companies are developing e-rickshaws with improved battery systems, efficient powertrains and ergonomic designs for enhanced riding comfort and performance. For instance, some players are offering e-rickshaws with lithium-ion batteries that can travel longer distances on a single charge compared to lead-acid batteries. There is also a rising demand for e-rickshaws integrated with telematics devices that enable fleet operators to track vehicle location, monitor driver behavior and optimize fleet utilization. This is expected to further fuel the sales of e-rickshaws across India in the coming years.
Porter’s Analysis
Threat of new entrants: Low-to-moderate. E-rickshaw market has low entry barriers but being highly fragmented, new entrants face saturation risks.
Bargaining power of buyers: Moderate. Buyers have varied options but brand loyalty and low unit costs maintain buyers’ bargaining power at moderate levels.
Bargaining power of suppliers: Low. Market has several small component suppliers with low switching costs and dependence on few buyers.
Threat of new substitutes: Moderate. Cycles, motorcycles, public transport pose threat but e-rickshaws’ affordable last-mile connectivity maintains its demand.
Competitive rivalry: High. Market sees aggressive price wars as players fight for limited market share in the fragmented landscape.
Key Takeaways
The global E-Rickshaw Market Size is expected to witness high growth over the forecast period. Asia Pacific dominates the market currently due to the large consumer base in countries like India and China. India is the largest market for e-rickshaws presently owing to the government’s support for eco-friendly last-mile transportation solutions.
Key players operating in the e-rickshaw market are Seattle’s VillageReach, Flirtey, Ehang, and ZipLine. Seattle’s VillageReach is one of the leading manufacturers and suppliers of electric rickshaws in India. Flirtey specializes in developing autonomous cargo delivery drones for various applications like medical deliveries.
E-rickshaws find significant demand in densely populated areas as an affordable means of last-mile connectivity. As such, metros and tier 2-3 cities across Asia and Africa will majorly drive the market over the coming years. Additionally, growing investments by OEMs in developing advanced lithium-ion batteries with higher capacities and durability are also fueling the industry expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
