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Government Policies Supporting the Distribution and Charging of Li-ion Batteries to Spur Growth of the Indian eRickshaw Market, 2025

  • Report

  • 128 Pages
  • December 2020
  • Region: India
  • Frost & Sullivan
  • ID: 5239256

FAME II Scheme and the Focus on Increasing Public Charging Stations to Present New Growth Opportunities

The evolving eRickshaw market in India is expected to witness increasing changes in the next 5 years driven by a myriad of factors. The country’s urban mobility modal is largely dominated by two and three wheelers (2Ws & 3Ws) , which account for close to a 50% share. With the advent of more public transport initiatives, the modal share of last-mile modes like 3Ws is likely to rise in key urban centers. Urbanization, increasing levels of pollution, climate change challenges, growth in new mobility solutions such as ride sharing services, and the emergence of innovative last-mile solutions have propelled a shift from internal combustion engine (ICE) driven vehicles to eRickshaws. In addition, electrification in India is likely to be driven by government incentives; growing need for clean, shared and public transportation; and the lower operational cost of electric vehicles (EVs). The Government of India (GOI) has initiated regulatory measures to drive this transformation to electric solutions in the 3W segment. This has prompted OEMs to look at innovative solutions within this space.

The eRickshaw market faces various challenges. Inadequate charging infrastructure, coupled with frequent charging issues, high battery replacement costs, poor build quality, and moderate battery life are some of the primary concerns that need to be addressed. For instance, the market is suffering from range anxiety issue where a concern persists whether the vehicle would have sufficient range to reach its destination. Various stakeholders in the ecosystem are working towards addressing major issues with a focus on 2030.

This eRickshaw study largely focuses on the electric 3-wheeler (e3W) market in terms of tracking its evolution, identifying opportunities, and understanding the future growth potential from an Indian context. It highlights trends and drivers that are making a case for e3Ws in the country. It also identifies current pain points associated with the adoption of eRickshaws, the significant impact of FAME II policy on the segment, and how various state governments have initiated regulations to embrace e3W solutions. Further, the study deep dives by providing insights on vehicle charging and financial solutions, and elaborates on how various players within this segment are positioning and pricing their products and solutions. Lastly, the study also analyzes consumer needs and how OEMs in the market are bridging the gap to address customer requirements.

The publisher expects the market for eRickshaws to reach close to a million units by FY25 owing to a revival of public transportation and tourism, demand from tier 1 & 2 cities, growing replacement demand, and an increase in penetration of vehicle financing. These will go a long way in shaping the future of eRickshaws in the country such that the market has the potential to be fully electrified by 2030.

Table of Contents

1. Strategic Imperatives
  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
  • The Impact of the Top Three Strategic Imperatives on the eRickshaw Market
  • Growth Opportunities Fuel the Growth Pipeline Engine™

2. Scope and Key Findings
  • eRickshaw Market, Scope of Analysis
  • Key Findings

3. eRickshaw Market, Introduction
  • Key Megatrends Impacting Mobility in India
  • Shared Mobility, Market Snapshot (2019)
  • Urban Mobility Modal Share
  • Drivers and Restraints
  • EVs, Current Challenges in India
  • Key Segments for Electrification in India
  • Electrification Roadmap for India, Vision 2030

4. eRickshaw Market, Growth Opportunity Analysis
  • eRickshaw Segmentation
  • Key Players in Select Markets
  • Key Growth Metrics for eRickshaw Market
  • Segment-wise Strength & Weakness Analysis
  • Forecast Assumptions, eRickshaw Market
  • Competitive Environment, eRickshaw Market
  • eRickshaw Customers
  • Impact of FAME II on eRickshaws
  • SWOT Analysis, eRickshaws
  • COVID-19 Related Relief Measures for eRickshaw Owners/ Drivers
  • Sales and Registration of EVs without Batteries
  • eRickshaw Market, State-wise Regulations
  • Banning of eRickshaws
  • eRickshaw, Pricing Trends and Forecast Analysis

5. eRickshaw, Market Overview
  • eRickshaw, Historic Sales and Forecast, FY19-FY25 - Realistic Scenario
  • eRickshaw, Historic Sales and Forecast, FY19-FY25 - Optimistic Scenario
  • eRickshaw Market, Segment-wise Sales Share
  • eRickshaw Volume Sales
  • Top Cities with eRickshaws in FY 2020
  • eRickshaw/eCart Classification
  • Market Share, Key Demand Centers
  • eRickshaw, Market Insights

6. eRickshaw Market Insights, FY20
  • eRickshaw, Insights on Battery Charging
  • eRickshaw, Warranty Practices
  • eRickshaw Financing
  • eRickshaw, Financing Outlook
  • eRickshaw Market, Entry Barriers
  • eRickshaw, Price-Product Positioning

7. eRickshaw, Customer Insights
  • Customer Need and Demand Analysis by Segment
  • Key Parameters - Satisfaction vs. Importance, Unorganized Segment
  • Key Parameters - Satisfaction vs. Importance, Semi-Organized Segment
  • Key Parameters - Satisfaction vs. Importance, Organized Segment
  • eRickshaw, Pain Points
  • Pain Points in the Current Battery Set-up, Lead Acid Battery
  • Need Gap Analysis, Unorganized Segment
  • Need Gap Analysis, Semi-Organized Segment
  • Need Gap Analysis, Organized Segment
  • Customer Expectation from Future eRickshaws, Summary

8. Cost of Ownership
  • Total Cost of Ownership (TCO) Comparison for 3 Years
  • Battery Replacement Cost for 3 Years, Calculation
  • Other Expenses for 3 Years, Tire and Vehicle Maintenance
  • Finance/EMI Calculation
  • eRickshaw Owners, Segment-wise Earnings Comparison
  • eRickshaw Drivers, Segment-wise Earnings Comparison

9. eRickshaw, Battery Swapping
  • Why Battery Swapping?
  • Impact of Battery Swapping on Cost of the Vehicle

10. eRickshaw, Key OEM Profiles
  • Mayuri, Company Overview
  • Mayuri, Dealer Network
  • Mayuri, Supplier Ecosystem
  • Mayuri, Product Portfolio
  • Kinetic Green, Company Overview
  • Kinetic Green, Dealer Network
  • Kinetic Green, Supplier Ecosystem
  • Kinetic Green, Product Portfolio
  • Mahindra Electric, Company Overview
  • Mahindra Electric, Dealer Network
  • Mahindra Electric, Supplier Ecosystem
  • Mahindra Electric, Product Portfolio
  • Lohia Auto, Company Overview
  • Lohia Auto, Dealer Network
  • Lohia Auto, Supplier Ecosystem
  • Lohia Auto, Product Portfolio
  • Thukral Electric Bikes, Company Overview
  • Thukral Electric Bikes, Dealer Network
  • Thukral Electric Bikes, Supplier Ecosystem
  • Thukral Electric Bikes, Product Portfolio
  • SAARTHI, Company Overview
  • SAARTHI, Dealer Network
  • SAARTHI, Supplier Ecosystem
  • SAARTHI, Product Portfolio
  • SAARTHI, Product Portfolio
  • Galaxy E-Vehicles (Green Impex), Company Overview
  • Galaxy E-Vehicles (Green Impex), Dealer Network
  • Galaxy E-Vehicles (Green Impex), Supplier Ecosystem
  • Galaxy E-Vehicles (Green Impex), Product Portfolio
  • Galaxy E-Vehicles (Green Impex), Product

11. Growth Opportunity Universe
  • Growth Opportunity 1 - Government Initiatives for Boosting the e3W Market, 2020
  • Growth Opportunity 2 - Developments within the Battery & Charging Infrastructure Space, 2020
  • 12. Next Steps

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Galaxy E-Vehicles (Green Impex)
  • Kinetic Green
  • Lohia Auto
  • Mahindra Electric
  • Mayuri
  • Thukral Electric Bikes