Under FAME India scheme phase II, the Indian government is investing INR 10,000 crore to make electric vehicles (EV) accessible to the masses. Of this, INR 2,500 crore is being used to offer an incentive of INR 50,000 on each of the 500,000 electric rickshaws (e-rickshaw) covered in the scheme. Even otherwise, e-rickshaws have rapidly proliferated in major tier 1 and 2 cities of the country, where they are playing the all-important role of solving the problem of first- and last-mile connectivity.
Due to these factors, P&S Intelligence expects the Indian electric rickshaw motor and controller market value to rise to around $86.0 million by 2024. Along with the battery, the motor and controller are the most-important parts of the e-rickshaw. The motor propels it forward, while the controller takes the energy from the battery and supplies it to the motor. This also makes them the most-expensive e-rickshaw components, which is why their sales revenue will surge rapidly with the burgeoning production and adoption of the vehicle.
The biggest reason behind e-rickshaws becoming a common sight in cities is the vast unmet need for short-distance commute. Most Indians still don’t own a vehicle, not even a scooter or motorcycle, which is why the reliance on public transport is quite strong in the country. For shorter trips, such as from the home to the school, market, and metro or bus station, people generally avail of cycle-rickshaws, which are slow. From the perspective of the driver, these vehicles require a lot of physical effort and they also don’t yield much money.
This is also why original equipment manufacturers (OEMs), not aftermarket companies, dominate the Indian electric rickshaw motor and controller market. Encouraged by the government policies on vehicle quality, OEMs are installing most of these two components in the vehicles. Moreover, the aftermarket entities in this industry are small garages, which can never offer any guarantee of the components they retrofit the vehicle with; therefore, e-rickshaw owners are increasingly approaching OEMs for replacement parts.
Hence, with the growth of the urban population, the demand for motors and controllers for e-rickshaws in India will continue to boom.