Electric Tuk-tuks Market

Tuk-Tuks EV Market - 2031:

The global electric tuk-tuks market was valued at $461.1 million in 2021, and is projected to reach $843.5 million by 2031, growing at a CAGR of 6.2% from 2022 to 2031.

Electric tuk-tuks (also known as e-rickshaws or toto) are small vehicles with three wheels that use electric power from batteries to run. They use an electric motor as an engine that draws electric power from the rechargeable batteries installed in the rickshaw body. These battery-operated vehicles are perfect for small distant transport, both cargo and people. Also, they are perfect for running on narrow streets because of their small size. Electric tuk-tuks are now one of the preferred modes of transport on streets because of their low maintenance cost, low fuel cost, eco-friendly, no noise pollution, and easy driving.

Furthermore, the increase in fuel prices at the international level, growth in pollution, and traffic congestion, especially in urban areas, have further increased the acceptance of electric three-wheelers, including electric tuk-tuks, across the globe. For instance, in June 2022, Saera Electric Auto Pt. Ltd. expanded its production capacity by commencing operations at its manufacturing plant in Bawal, Haryana. The plant was spread across an area of 20,000 sq.m and was equipped with advanced engineering tools and equipment for manufacturing electric vehicles, which favored the growth of electric tuk-tuks in the Indian market.

The factors such as growth in the trend of shared mobility, inclination toward the use of electric tuk-tuks as an eco-friendly & efficient solution for commute, and stringent vehicular emission norms & regulations supplement the growth of the electric tuk-tuks industry. However, the lack of standardization of EV charging and the high cost of battery are the factors expected to hamper the growth of the market. In addition, greater availability of credit and financing options and rising fuel prices and new product launches create market opportunities for the key players operating in the electric tuk-tuks market.

The electric tuk-tuks market is segmented into power type, battery type, range and price range and region. By power type, the market is divided into up to 1000W, 1000W to 1500W, and above 1500W. By battery type, it is fragmented into lithium-ion and lead acid. By range, it is categorized into upto 50KM and more than 50KM. By price range, it is further classified into low to mid and high. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The leading players operating in the electric tuk-tuks market are Arna Electric Auto Private Limited, Bajaj Auto Ltd., E-Tuk Factory, Goenka Electric Motor Vehicles Pvt. Ltd., Green Valley Motors, Hero Electric, Jezza Motors, Kinetic Green Vehicles, KUKU Automotives, Mahindra Electric Mobility Limited, SAERA ELECTRIC AUTO PVT. LTD., SN Solar Energy, Speego Vehicles Co Pvt Limited, SUPERECO, Udaan E Rickshaw, QSD, and Zuperia Auto Pvt. Ltd.

Growth in the trend of shared mobility

Shared mobility services reduce city congestion and decrease overall vehicle emissions. Therefore, digitally enabled car sharing and ride-hailing manage travel needs in the smartest way and also provide a hassle-free and environmentally sound alternative to private car ownership. This sharing & ride-hailing activity which includes the entire process from travel planning to payments can be handled by a single mobile app. In the coming years, ride-hailing services are projected to play a major role in this space by reducing manual tasks and minimizing the overall time & cost. This trend is further foreseen to strengthen the growth of the electric tuk-tuk market.

To create awareness and promote new services, the key players offer discounts, free rides, and coupon facilities to customers. Moreover, California-based company Lyft Inc. is providing free rides to patients. Furthermore, Lyft also invested in several partnerships, most noticeably in healthcare transportation, which provides new mobility options for non-drivers, including older people, younger people, people with disabilities, and people without access to a vehicle. Shared transportation is taking a back seat amid the pandemic. However, the benefits of shared mobility, such as reduced congestion, reduced emission, and low cost, are anticipated to strengthen the demand for electric tuk-tuks during the forecast period.

Inclination toward the use of electric tuk-tuks as an eco-friendly & efficient solution for commute

Continuously growing global carbon emission by combustion of fuel has been one of the foremost concerns for governments and environmentalists for the past few years, which as result, bolsters the demand for electric tuk-tuks across the globe for passenger transport; thereby supplementing the growth of the market. Furthermore, the increase in fuel prices at the international level, growth in pollution, and traffic congestion, especially in urban areas, have further increased the acceptance of electric three-wheelers, including electric tuk-tuks, across the globe. For instance, in June 2022, Saera Electric Auto Pt. Ltd. expanded its production capacity by commencing operations at its manufacturing plant in Bawal, Haryana. The plant was spread across an area of 20,000 sq.m and was equipped with advanced engineering tools and equipment for manufacturing electric vehicles, which favored the growth of electric tuk-tuks in the Indian market. In addition, relatively higher running and maintenance costs of petrol/ CNG & diesel propelled three-wheeler leads to a shift in preference for electric three-wheeler for the shorter transits, which, in turn, drive the electric tuk-tuks market growth.   

Lack of standardization of EV charging

The electric vehicle’s battery source does not have any alternative source for charging. The shortage of charging points in most cities is a major challenging factor for the growth of the global electric tuk-tuks market. Furthermore, thin & inconsistent infrastructure and range anxiety can create a problem for electric vehicles and can put travelers at risk. Moreover, the implementation of the supportive infrastructure required for electric vehicles in developing countries is less. Furthermore, as the technology is not mature enough, apart from China, the sales of electric vehicles are extremely less compared to the internal combustion engine (ICE) vehicle sales. The automotive industry has standardized 120- and 240-volt plugs, which are primarily used in homes but has not yet set a standard on the plugs or ports that can charge vehicles in 30 minutes or less. Thus, all these factors, coupled with the different prices at charging stations altogether, are responsible for hindering the growth of the global electric tuk-tuks industry.

Greater availability of credit and financing options

Governments of various countries are supporting the adoption of electric tuk-tuks, an efficient solution for daily commutes for passengers, by introducing various incentive plans in terms of tax credits and incentives. For instance, in June 2019, the Indian Government announced a plan to lower the goods & service tax (GST) on electric vehicles from 12% to 5% to reinforce the adoption rate of electric three-wheeler (loader rickshaws/electric tuk-tuks). The government is even waiving the registration fees and road tax under the EV policy. The subsidies further bring down the overall cost of ownership, which allows the owner to save a significant amount of capital annually. All these factors are expected to create lucrative opportunities for the electric tuk-tuks market.

Numerous companies operating in the automotive industry have stepped up by reconfiguring their supply chain, production, and services for the delivery of critical medical supplies. For instance, India’s largest automaker, Maruti Suzuki, collaborated with Nigen Equipment Pvt Ltd and SAM Gas Projects Pvt Ltd to produce more oxygen to meet the demand. Bajaj Auto, a market leader in the three-wheeler market came out to assist their employees who lost their battle in COVID-19 by paying them two years’ salary. In addition, Mahindra & Mahindra started using their bolero trucks for oxygen cylinder deliveries. Furthermore, the pandemic also impacted the source of earnings of various electric tuk-tuks drivers, especially in passenger space, owing to which the loan defaulters have increased at a considerable pace. This further initiated a chain reaction, as contracting in finance facilities further impacted the electric tuk-tuks sales. In addition, due to the imposition of lockdown, the government of many countries restricted the use of public transport, which led to less income for the owner, resulting in delayed or no payment of the bank EMI. As India is the largest three-wheeler producer as well as consumer, and around 85% of the electric tuk-tuks are purchased through financing, agencies are worried about the repayment.

Key Benefits For Stakeholders

• This study presents an analytical depiction of the global electric tuk-tuks market analysis along with current trends and future estimations to depict imminent investment pockets.
• The overall electric tuk-tuks market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global electric tuk-tuks market with detailed impact analysis.
• The current electric tuk-tuks market is quantitatively analyzed from 2022 to 2031 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Electric Tuk-tuks Market Report Highlights