In India, the need for mass transportation has been steadily rising. Due to lockdowns and curfew-like conditions, the COVID-19 pandemic had an adverse effect on the expansion of the Indian electric rickshaw sector. After the pandemic, things returned to normal, and in between, the automotive sector saw a major increase in demand for electric rickshaws, supported by government policies and the availability of affordable models on the market. In reality, the market for electric rickshaws in India will grow at a 33.3% CAGR from 2020 to 2025. At this rate, the market is set to grow from $786.2 million in 2019 to $1,394.2 million in 2025. This also has given the key to electric rickshaw manufacturers in India to constantly develop and produce electric Vehicles to carry out last-mile operations.
Growth Of India’s Electric Rickshaw Market
According to the type of vehicle, the passenger carrier division is anticipated to hold a higher part of the Indian electric rickshaw market in the next few years. The demand for affordable first- and last-mile transportation is rising as urban populations rise, which is why there are more and more passenger carrier e-rickshaws on the country’s highways.
The Indian electric rickshaw market’s motor power segment’s >1,500 Watts category will soon have a higher value CAGR of 35.7%. Their sales will also quickly increase as organised automakers gain more power and provide higher-quality goods with more potent engines. Presently, the majority of drivers favour inexpensive e-rickshaws since they are widely accessible in India with different models and features. Because state governments have passed regulations permitting the use of these vehicles. Systematic compliance, under segmentation by sales channel, is anticipated to generate more revenue for the Indian electric rickshaw industry in the coming years.
Mission to Achieve Carbon Neutrality
Pressure from the government and the general public to achieve carbon neutrality has fueled the increase in electric vehicles. Sustainable mobility is a major tenet of many plans, and governments and businesses have made commitments to considerable carbon reductions or full net neutrality. Transportation-related greenhouse gas (GHG) emissions account for 27% of total emissions, and road transportation – of which last-mile delivery is a major contributor—is responsible for 80% of these emissions. If nothing is done, the increasing e-commerce business and customer desire for quicker delivery times will cause last-mile delivery GHG emissions to rise by approx 31% by 2030.
So, the environmental benefits of EVs are crucial. Air pollution is decreased with zero-emission EVs. The closed-circuit electric motor of the EV emits no dangerous contaminants. This is another reason for the growth of Electrical vehicles in Last mile connectivity.
Advantages of an EV
Minimal use of gasoline
A fully electric vehicle requires no gasoline, compressed natural gas, or diesel fuel; even a hybrid EV uses a negligibly small amount of fuel.
Tax Benefits
The Indian government supports EV sales with policies and incentives. Compared to cars with combustion engines, EVs have lower registration and road tax costs.
Convenient and simple to keep up
Electric vehicles require very little upkeep. They are easy to charge and can be easily connected to an external power source, just like mobile phones. Most EVs can go between 80 and 100 miles after being recharged.
Suggested Read: 2023: Another Historical Year for the Electric Vehicle Market? Know Here
Conclusion
In the race for the last mile, electric vehicles are steadily gaining ground, and they are unquestionably a worthwhile investment to think about in 2023 and beyond. And in contribution to that, Saera Electric Auto Private Limited is one of the leading companies in the electric vehicle sector. We are the first to introduce E-Rickshaw in India. We are also known as battery operated e rickshaw manufacturers specialised in cleaner and greener electric two-wheelers and electric rickshaws.