India Electric Rickshaw Market Research Report and Industry Forecast

India Electric Rickshaw Market Summary:

The India electric rickshaw market size reached USD 1.4 Billion in 2024. The market is projected to reach USD 3.0 Billion by 2033, exhibiting a growth rate (CAGR) of 7.90% during 2025-2033. The market growth is attributed to rising government incentives for EVs, surging fuel prices, growing demand for affordable last-mile transportation, and increased consumer awareness of eco-friendly mobility.

Market Insights:

• North India dominated the India electric rickshaw market in 2024.
• Based on motor power, the 1000–15000 W segment accounted for the largest share.
• By battery capacity, <101 Ah held the majority share.
• Among battery types, lead acid batteries dominated the market.
• By sales channel, the unorganised sector led the market.
• Based on end user, the passenger carrier segment was the leading contributor.

Market Size and Forecast:

• 2024 Market Size: USD 1.4 Billion
• 2033 Projected Market Size: USD 3.0 Billion
• CAGR (2025–2033): 7.90%
• North India: Largest market in 2024

Electric rickshaws are battery-operated three-wheelers with a better economy and lower operational and maintenance costs. They comprise a motor, controller, harness, batteries and throttle. They are strong, non-conducting, lightweight, highly durable, and resistant to fire. They are eco-friendly as e-rickshaws do not have tailpipes and emit toxic pollutants into the air during operation. They are more comfortable to drive and cheaper compared to manually pulled rickshaws. In addition, they ensure a smooth driving experience on busy and congested roads while producing fewer vibrations and noise.

India Electric Rickshaw Market Trends:

The rising awareness among the masses of India about the benefits of using e-rickshaws represents one of the key factors augmenting the e-rickshaw market share in India. Besides this, the Government of India is promoting electric vehicles (EVs) in public transportation and fleets. This, along with rising incentives provided by governing authorities to the manufacturers of electric vehicles (EVs), is contributing to the growth of the market. Moreover, the affordable price of e-rickshaws and their maneuverability across urban roads of India are positively influencing the market. In addition, there is an increase in the demand for e-rickshaws due to the expected ban on fuel-powered vehicles. This, coupled with the rising fuel prices in the country, is going to be offering lucrative growth opportunities to industry investors, as per the e-rickshaw market forecast. Apart from this, due to the increasing urban population, there is a rise in the demand for cost-effective first and last-mile transportation in India. In line with this, rising concerns about environmental pollution due to the utilization of diesel-fueled vehicles are catalyzing the demand for e-rickshaws in the country. Additionally, key market players are extensively investing in research and development (R&D) activities to introduce improved e-rickshaws with powerful motors.

India Electric Rickshaw Market Growth Drivers and Opportunities:

Several factors are driving the growth of the India electric rickshaw market, with significant opportunities emerging in urban mobility. The FAME-II subsidy extension and state incentives are pivotal in lowering the upfront costs of electric rickshaws, particularly in tier-II cities where adoption has been slow. Moreover, there is a growing need for last-mile shared mobility in rapidly urbanizing towns, where the cost-effective nature of electric rickshaws makes them an attractive option, which fuels the India electric rickshaw market demand. E-commerce logistics companies are increasingly embracing cargo e-rickshaws for intra-city delivery, tapping into the need for low-emission, cost-efficient transport. These trends, coupled with a rising emphasis on sustainable transport solutions, present an ideal opportunity for electric rickshaws to become an integral part of India’s urban infrastructure.

India Electric Rickshaw Market Challenges:

The industry faces several challenges hindering its growth potential. Fragmented and informal financing channels limit access to credit for rickshaw drivers, especially in rural areas where affordability is a primary concern, as per the India electric rickshaw market analysis. Without formal financing options, many drivers are unable to invest in electric vehicles, thereby slowing market expansion. Additionally, while the lead-acid battery recycling ecosystem is gradually evolving, it remains inefficient and costly. This impacts the total cost of ownership, as battery replacements are expensive and often a deterrent for potential buyers. Furthermore, the low availability of standardized service and repair networks increases maintenance costs, contributing to the reluctance of drivers to fully transition from traditional to electric rickshaws. These challenges must be addressed to fuel broader adoption and enhance the India electric rickshaw market share.

India Electric Rickshaw Industry Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India electric rickshaw market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on motor power, battery capacity, battery type, sales channel and end user.

Breakup by Motor Power:

• <1000 W
• 1000 – 15000 W
• >1500 W

The 1000–15000 W motor power segment dominates the market due to its balance between power and affordability. This range provides optimal performance for both passenger carriers and load carriers, making it ideal for India’s urban and semi-urban environments. Electric rickshaws with this motor power can easily navigate congested streets while offering cost-effective solutions for operators. The efficiency and performance of these vehicles help reduce the reliance on fuel-based transportation, further accelerating the adoption of e-rickshaws in India. As government incentives continue, the demand for affordable yet powerful e-rickshaws is expected to grow, driving significant India electric rickshaw market growth.

Breakup by Battery Capacity:

• <101 Ah
• >101 Ah

The <101 Ah battery capacity is the leading segment in the market, as it offers a cost-effective solution while providing adequate range for short to medium urban routes. The affordable pricing of these battery-powered rickshaws makes them attractive to a wider demographic, especially in rural and semi-urban areas, where lower capital investment is crucial. With the need for affordable first-mile and last-mile transport growing, this battery segment supports the market’s expansion by catering to cost-conscious buyers. Additionally, its ability to meet the daily commuting needs of urban drivers boosts the adoption rate and contributes to environmental sustainability by reducing emissions.

Breakup by Battery Type:

• Li-ion Battery
• Lead Acid Battery

Lead acid batteries continue to dominate the market due to their lower cost compared to Li-ion alternatives. Despite shorter lifespan and lower energy density, lead acid batteries are widely adopted by price-sensitive operators who prioritize initial affordability over long-term efficiency. Their extensive availability and well-established manufacturing infrastructure make them a practical choice for electric rickshaw manufacturers, further expanding market penetration. This battery type's popularity, particularly in the unorganised sector, drives the adoption of electric rickshaws in areas where operational costs need to remain low. With increasing government subsidies and incentives, the lead acid segment is expected to maintain its strong position in the market.

Breakup by Sales Channel:

• Organised
• Unorganised

The unorganised sales channel is the dominant sales channel in the market, accounting for a significant portion of sales. This is primarily driven by the availability of low-cost rickshaws in the informal sector, which provides affordable options for local operators. Many buyers in rural and semi-urban areas prefer unorganised channels due to the relatively lower prices and lack of formal financing options. The unorganised market also allows for flexible distribution and repairs, which is attractive to local entrepreneurs. This sector is critical for market growth, as it introduces electric rickshaws to a wider audience, helping expand the footprint of electric mobility in India.

Breakup by End User:

• Passenger Carrier
• Load Carrier

The passenger carrier segment is the dominant end user of electric rickshaws, with these vehicles widely used for affordable urban transport. E-rickshaws provide a much-needed solution for last-mile connectivity in crowded urban areas, offering a cleaner and quieter alternative to traditional fuel-powered rickshaws. They are especially popular in tier 2 and tier 3 cities, where passenger carriers are critical to the daily commute. The segment’s growth is also encouraged by government incentives and policies that promote electric mobility. As the urban population increases, the demand for cost-effective and sustainable transport grows, driving the expansion of passenger carriers in the market.

Breakup by Region:

• North India
• West and Central India
• South India
• East India

North India leads the market due to its high population density, rapid urbanization, and supportive regulatory environment. Major urban centers like Delhi, Uttar Pradesh, and Haryana have seen substantial adoption of electric rickshaws, driven by government incentives and a growing focus on reducing air pollution. This region also boasts a well-established informal market, with many local manufacturers and distributors catering to the high demand for affordable electric rickshaws. Additionally, increasing fuel prices and the push for eco-friendly solutions have further fueled the popularity of electric rickshaws in North India, making it a key driver for the industry’s overall growth.

Top Electric Rickshaw Companies in India:

The competitive landscape of the industry has also been examined along with the profiles of the key players being:

•  Adapt Motors Private Limited
• ATUL Auto Limited
• CityLife EV
• E-Ashwa Automotive Private Limited
• Goenka Electric Motor Vehicles Private Limited
• Jezza Motors (Vani Electric Vehicles Pvt. Ltd)
• Kinetic Green Energy & Power Solutions Ltd
• Lohia Auto Industries
• Mini Metro EV LLP
• Saera Electric Auto Private Limited
• Terra Motors India Corp.
• Thukral Electric Bikes
• Udaan E Rickshaw

Latest News and Developments:

• On July 14, 2025, Bajaj Auto unveiled plans to launch an updated version of its GoGo e-rickshaw, featuring advanced lithium-ion battery technology. The new model will offer two battery pack options, a 12.1 kWh pack with a range of 251 km and a 9.2 kWh pack offering 176 km, aimed at enhancing the range and performance of e-rickshaws. Bajaj Auto aims to sell 40,000 units annually, contributing to the expansion of India's electric mobility sector, especially in northern and eastern regions where the GoGo brand is already popular.
• On May 27, 2025, Terra Motors expanded its electric vehicle portfolio by launching a new electric auto aimed at strengthening its position in the L5-EV segment. The company aims to capture a market share of 5-8% in the segment, which sees annual sales of around 1.5-1.6 lakh units. Terra Motors also plans to increase its production capacity to 5,000 units per month and establish 100 dealerships across India to boost its presence and meet growing demand for clean mobility solutions.
• On January 18, 2025, Hyundai Motor Company announced a potential partnership with TVS Motor Company to manufacture advanced electric three-wheelers as well as micro four-wheelers tailored for last-mile mobility in India. The collaboration aims to contribute to India's growing electric mobility market, with a focus on enhancing urban connectivity through sustainable transport solutions. Hyundai plans to provide design, engineering, and technology, while TVS will handle manufacturing and marketing, with the goal of addressing the nation's evolving mobility needs and improving last-mile connectivity across Indian cities.
• On November 22, 2024, ZELIO Ebikes, a prominent player in India’s electric two-wheeler market, officially entered the e-rickshaw market with the launch of its Tanga by ZELIO models at the EV India Expo 2024. With growing demand for affordable last-mile mobility, ZELIO aims to capture a share of the market, which is particularly strong in urban and semi-urban areas. The company plans to leverage its existing success in electric two-wheelers and expand its dealership network to 400 locations by March 2025, positioning itself as a leader in eco-friendly, sustainable transportation solutions across India.

Report Coverage: