In 2022, the market for electric rickshaws in India was valued at US$1.2 billion. Looking ahead, IMARC Group projects that the market will increase at a compound annual growth rate (CAGR) of 10.7% from 2023 to 2028, reaching US$ 2.3 billion.
Battery-powered three-wheelers, called electric rickshaws, have better economics and lower operating and maintenance costs. They are made up of a throttle, motor, controller, harness, and batteries. They are fire-resistant, tough, non-conductive, light, and highly durable. Since e-rickshaws don't have tailpipes and don't release harmful air pollutants when operating, they are environmentally beneficial. When compared to manually drawn rickshaws, they are more affordable and more comfortable to drive. Additionally, they minimise vibration and noise while ensuring a comfortable driving experience on busy and congested highways.
One of the main forces propelling the e-rickshaw market is the growing understanding among the general population of India of the merits of e-rickshaws. In addition, the Indian government is pushing for the widespread adoption of EVs for use in public transit and commercial fleets. The increasing incentives offered by governments to Electric Vehicle (EV) manufacturers are also helping the expansion of the market.
Similarly, growing worries about pollution from diesel-fueled vehicles are spurring the demand for e-rickshaws across the country. Hence, major competitors in the market are spending heavily on R&D to produce more efficient motors for e-rickshaws.
We visited Vidhyut's e-rickshaw manufacturing plant in Rourkela, Odisha. Here's what we explored:
Amongst the manufacturers of e-rickshaw is Vidhyut. Registered as Kalinga Ventures India Pvt. Ltd., Vidhyut has three factories located in Surat, Gujarat; Rourkela, Odisha; and Howrah, West Bengal, that manufacture battery-operated three-wheelers (often known as e-rickshaws, e-autos, and totos).
At Vidhyut, all three factories have a combined yearly production capacity of 10,000 vehicles, and the company has opened more than 40 showrooms across 16 states.
"The company uses a distributor-dealer business model, in which state-by-state distributors are chosen based on their financial prowess and marketability. These distributors then select dealers according to geographic regions, and the dealers establish "Retail Showrooms" in those regions," says Raj Narayan Pandey, Manager at Vidhyut's Rourkela unit.
These e-rickshaws are presently serving 100 municipalities of Rourkela. Till now, the Odisha government has purchased more than 500 of these e-rickshaws from Vidhyut, including Pink Autos, which is a women-empowerment initiative of the Odisha government, wherein they help women from marginalised communities be self-reliant.
The government orders generally contain e-garbage vans and are typically popular and constitute a good amount of sales for Vidhyut. Even the Odisha Central Jail has 50 of these vehicles. "Currently, government orders of 200 vehicles are underway, and we are trying our best to finish them as early as possible," elaborates Pandey.
Amongst all the spare parts, 75% are sourced from multiple places in India, including Delhi and Kolkata, and 25% are imported from China. Generally, accelerators, horns, and other small electric parts are imported from China. These spare parts are used to manufacture a variety of products, including e-auto, e-rickshaw, garbage vans, confectionary vans, school vans, e-ambulance, e-van (freezers), and e-cart.
Apart from manufacturing, the business also offers servicing and repairing of e-rickshaws. Here, both on-site and factory servicing is available for the customers to avail. One concerning thing that was observed was the missing safety equipment of the workers during the welding process.
The Vidhyut e-rickshaws can be divided into lithium-ion battery and lead acid battery categories based on the type of battery they use. Because they are less expensive, lead acid batteries currently hold the majority of the market sales for the company.
Raj Narayan Pandey, 57, the Manager of Vidhyut's Odisha unit, has been working in this manufacturing unit since 2018, and he oversees the manufacturing and testing process here. He hails from Uttar Pradesh's Mainpuri district and shifted here with his whole family.
Commenting on why the workers were not wearing any protective gear during the welding and spray painting process, Pandey says, "We ensure the safety of all our workers, and I regularly instruct them to wear all the protective gears, but once in a while, the workers miss out on these crucial need because they say that wearing the safety equipment is a burden because they are really heavy. But, as soon as it comes to my notice, I talk to them and make them understand the health effects of the same and instruct them further to use the safety gear. I feel that my duty as a manager is to run the place smoothly, and that includes taking care of my people."
Overall, the anticipated ban on fuel-powered vehicles has increased demand for e-rickshaws. Investors in the industry are being presented with lucrative growth opportunities as a result of this and the nation's rising fuel prices. In India, demand for affordable first and last-mile transportation is also rising as a result of the country's growing urban population.
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