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How to start an E-Rickshaw business?

Posted by Priya Singh On 27-Sep-2022 01:44 PM

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  • E-rickshaws have been a part of people's lives in Delhi, Lucknow, Varanasi, Ghaziabad, Dehradun, Udaipur, Indore, Patna, Bhagalpur, Ranchi, Coimbatore, and Puducherry since 2010.


    E-rickshaws contribute to the noble cause of pollution reduction. Governments around the world are attempting to address pollution in a peaceful yet effective manner. E-rickshaws offer eco-friendly transportation at a low cost to the general public.

    For Indian entrepreneurs, it has proven a successful and feasible business alternative. Given the Indian government's constant emphasis on electric vehicles, this trend is likely to continue. This article will go through the fundamentals of the electric rickshaw business in India.

    E- Rickshaw

    Electric rickshaws are an improved version of traditional auto rickshaws. However, unlike auto-rickshaws, which run on conventional fuel such as petrol and diesel, generating pollution, electric rickshaws run on batteries, causing no air pollution. Cargo e-rickshaws and passenger e-rickshaws are two types of e-rickshaws.

    E-rickshaw Physical Features

    So, what distinguishes an e-rickshaw from a typical motorized or manual rickshaw? According to the Motor Vehicles Acts of 2014 and 2015, an e-rickshaw is a vehicle.

    Three-wheeled special purpose battery-powered vehicle capable of carrying no more than four passengers (excluding the driver) or no more than 40 kgs of luggage in total. The highest allowed speed is 25 kilometres per hour, and the maximum motor capacity is 4000 Watts.

    The Evolution of the E-Rickshaw Business Plan

    According to A.T. Kearney, a major global management consulting firm, the network of e-rickshaws on Indian roads in 2018 was over 1.5 million, which was greater than the total number of electric automobiles sold in China in 2011.

    This phenomenal expansion did not occur in a single day. People's hearts were won over by e-rickshaws even before sustainable transportation gained traction. The following are some significant events in the evolution of the e-rickshaw sector in India:

    In the late 1990s, the Nimbkar Agricultural Research Institute (NARI) in Maharashtra attempted to develop the first e-rickshaw. The main goal at the time was to make adjustments to the manual rickshaws. NARI created a motorized pedal rickshaw.

    NARI created the first electric rickshaw, ELECSHA, in 2000.

    E-rickshaws have been a part of people's lives in Delhi, Lucknow, Varanasi, Ghaziabad, Dehradun, Udaipur, Indore, Patna, Bhagalpur, Ranchi, Coimbatore, and Puducherry since 2010.

    The Importance of the E Rickshaw Rental Business

    There is no air pollution.

    The primary reason for the popularity of electric rickshaws is that they do not pollute the environment. Because it is driven by electrically charged batteries or solar-powered batteries rather than petrol, gasoline, or compressed natural gas (CNG), which creates significant air pollution, e-rickshaws are a lifeline for a country suffering from air pollution.

    Low operating costs

    Electric rickshaws have much lower maintenance costs than auto rickshaws. The vehicle's spare components are likewise not exclusive and may be obtained elsewhere dependent on the needs.

    Rural connectivity is possible.

    E-rickshaws are suited for rural roads with narrow shoulders. E-rickshaws are used in rural and village regions to get to major towns or cities. It also has a larger turning radius, making it preferable in congested areas.

    Low operating expenses

    The operating costs are relatively low compared to other businesses. Because these rickshaws are powered by rechargeable batteries, the recharge cost is likewise minimal. It is a huge help because standard fuel prices are soaring and expensive.

    Creating new job opportunities

    Over a million and a half e-rickshaws are operating on Indian highways, increasing jobs.

    Why Should You Start An E-rickshaw Business in India?

    If you're still not convinced that the e-rickshaw company is the next big thing in India, here is some collected data from several studies that demonstrate the performance and future growth of the e-rickshaw industry.

    • Every month, around 11,000 new e-rickshaws are purchased in India.
    • Annual sales are expected to increase by 9% every year.
    • E-rickshaws dominate the electric vehicle sector in India, accounting for 80% of the market.
    • It is expected that about 935.5 thousand units would be sold by 2024.

    Are you still considering starting an e-rickshaw business? The Indian government has enacted numerous rules and provided support to boost the use of electric vehicles in India, including e-rickshaws. Our government has launched many schemes and yojana to assist entrepreneurs in starting their businesses such as National Urban Livelihoods Mission, Draft Taxi Policy, Pradhan Mantri Mudra Yojana (PMMY), Aatmanirbhar Bharat, Subsidy by Fame I, Subsidy Scheme by Delhi Government, and many more.

    Problems in the E-Rickshaw Rental Business

    Despite having so many advantages and official assistance, the e-rickshaw sector nevertheless faces challenges. They are as follows:

    • The vast majority of participants in this industry are unorganized.
    • Overcrowding and aggressive driving in e-rickshaws as a result, safety during the journey is a major concern.
    • E-rickshaws are not ideal for long-distance rides; they are only good for short routes.
    • When compared to the fleet of e-rickshaws, the number of electric charging stations is small.

    e rickshaw.jpg

    As the Indian government works to transform the country into an automobile hub over the next five years, focusing on the electric vehicle segment and constructing 2,000 electric charging stations this year alone, now is an excellent time to invest in the e-rickshaw business.

    Now the question arises, to start a business one should Buy or Rent an auto Rickshaw.

    For many men and women in underdeveloped and impoverished communities, the e-rickshaw industry provides a means of independence and income.

    Merits of Owning an e-Rickshaw

    Here are some advantages to purchasing and operating your auto rickshaw:

    1. Simple Financing- The government has implemented numerous financing plans to enhance the sales of this commercial vehicle. As a result, the acquisition cost is quite minimal, making it easy to select the perfect suit for your budget and needs.

    2. Best-in-Class Mileage- The auto-rickshaw has the best mileage and the most distance per litre. As a result, fuel consumption is quite low when compared to other commercial public vehicles.

    3. Superior Performance- Because of its higher torque and power, an auto rickshaw has better pickup and gradability, resulting in an excellent performance.

    4. Good Reselling Value- Buying an e-rickshaw is a low-cost investment that also assures higher returns on resale.

    5. No Profit Sharing- The most significant advantage of owning and operating an auto on your own is that you do not have to share profits with the drivers.

    Merits of Rental e-Rickshaw

    You can also make money by renting out an e-rickshaw on a daily or weekly basis. You may be a professional with a job, but if you rent an e-rickshaw, you can make a fine living. As a result, it could be an excellent side business for you. Here are some of the advantages of renting an auto-rickshaw:

    1. Cost Effective- People are suffering from cab and taxi surge charges during rush hours and office hours. Renting an auto rickshaw, on the other hand, can be a more handy and cost-effective option.

    2. When you rent a self-drive auto, you have the freedom and flexibility to hire any driver you wish. You have the freedom to choose where you wish to launch your rental business.

    3. Low Maintenance Costs- Auto rental companies relieve you from the burden of maintenance expenses, routine servicing, and depreciation loss.

    4. Suitable for Rural Connectivity-Another advantage of renting an auto rickshaw is that it is the best alternative for rural connectivity. It also has a good turning radius, making it suitable for high-traffic roads in India. You can make money by renting it out in remote areas.

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