Electric Loader Rickshaw Market Expected to Reach $614.8 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electric Loader Rickshaw Market," The electric loader rickshaw market was valued at $310.8 million in 2021, and is estimated to reach $614.8 million by 2031, growing at a CAGR of 7% from 2022 to 2031.

The concept of electric loader rickshaw is typically attributed to the transportation options that use a propulsion technology which does not produce internal combustion engine exhaust or other carbon emissions when it operates. It utilizes a battery and an electric powertrain to propel the vehicle. The electric loader rickshaws are primarily electric three-wheelers that are used for loading goods. These vehicles can carry different cargo loads, with the maximum limit being 450 kg. At present, continuously growing global carbon emission by combustion of fuel has been one of the foremost concerns for governments and environmentalists from the past few years, which as result, bolsters the demand for electric loader rickshaws across the globe for commercial transport; thereby, supplementing the growth of the market. For instance, in July 2021, Terra Motors India collaborated with FCC Corporation, manufacturer of auto parts to further develop the current electric vehicle technologies and use India as the base for their operations. This collaboration also saw the development and manufacturing of electric vehicles parts in India, which favored the growth of electric mobility loaders in the Indian market

In addition, the electric loader rickshaw market has witnessed significant growth in recent years, owing to the increased demand for improved vehicle performance and the inclination of consumers towards environment-friendly vehicles. Hence, government of various countries are supporting the adoption of electric loader rickshaws as a commercial vehicle 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).

The factors such as rise in trend of last mile connectivity, increase in demand for affordable commercial vehicle, and inclination toward use of electric loader rickshaw as an eco-friendly & efficient solution for commute supplement the growth of the electric loader rickshaw market. However, lack of standardization of EV charging and 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 creates market opportunities for the key players operating in the market.

COVID-19 Impact Analysis:

The pandemic impacted the source of earning of various loader rickshaw drivers especially in passenger space, owing to which the loan defaulters have been increased at a considerable pace. This further initiated a chain reaction, as contracting in finance facilities further impacting the loader rickshaw sales. In addition, due to the imposition of lockdown, government of many countries have restricted the use of public transport, which leads to less income to the owner, and he may not be able to pay the EMIs. As India is the largest loader rickshaw producer as well as consumer and around 85% of the loader rickshaw are purchased through financing, agencies are worried about the repayment. In addition, amid pandemic many different players are trying to devise different approaches in order to keep up with the condition by using three-wheeler (loader rickshaws) for medical supplies as it provides affordable transportation with excellent maneuverability. For instance, Omega Seiki Mobility recently launched Rage+frost, a refrigerated load carrier three-wheeler (loader rickshaw), which is specifically designed for vaccine, pharmaceutical, and food delivery in these hard times.

KEY FINDINGS OF THE STUDY

• By power type, the above 1500W segment is projected to dominate the global electric loader rickshaw market in terms of growth rate.
• By battery type, the lithium-ion segment is projected to dominate the global electric loader rickshaw market in terms of growth rate.
• By range, the more than 50km segment is projected to dominate the global electric loader rickshaw market in terms of growth rate.
• By price range, the high segment is projected to dominate the global electric loader rickshaw market in terms of growth rate.

The leading players operating in the electric loader rickshaw market are Adapt Motors, AG International Pvt. Ltd., Arna Electric Auto Private Limited, BABA E-Rickshaw, E-TUK Factory, Gayatri Electric Vehicles, Goenka Electric Motor Vehicles Private Limited, J.S. Auto Pvt. Ltd., Kinetic Green Vehicles, Mahindra Electric Mobility Limited, Mini Metro EV LLP, Singham (U.P. Telelinks Limited), SN Solar Energy, Terra Motors India, Victory Electric Vehicles International Limited, Xuzhou Hongsengmeng Group Co., Ltd., and Zuperia Auto Pvt. Ltd.