Our government has launched various schemes and yojana to assist entrepreneurs in starting their businesses, like the National Urban Livelihoods Mission, Draft Taxi Policy, and Pradhan Mantri Yojana. Electric 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. Electric auto rickshaws offer eco-friendly transportation at a low cost to the general public.

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

Electric E Rickshaw

Electric e 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 e rickshaws run on batteries, causing no air pollution. Cargo electric rickshaws and passenger electric auto rickshaws are two types of passenger autos.

Electric Rickshaw Physical Features

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

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

The Evolution Of The Electric Rickshaw Business Plan

According to A.T. Kearney, who is a major global management consultant firm, the network of battery rickshaws on Indian roads in 2018 was over 1.5 million, which was greater than the total number of electric vehicles sold in China in 2011.

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

In late 1990, the Nimbkar Agriculture Research Institute in Maharashtra attempted to develop the first battery rickshaw. The aim at the time was to make adjustments to the manual rickshaws. NARI created a motorized pedal rickshaw.

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

Passenger autos have been a part of people’s lives in Delhi, Lucknow, Kanpur, Varanasi, Ghaziabad, Dehradun, Udaipur, Indore, Ranchi, Bhagalpur, and Puducherry since 2010.

The Importance Of The Electric Rickshaw Rental Business

1. There is no air pollution.

The primary reason for the popularity of electric e 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 compromised natural gas (CNG), which creates significant air pollution, electric e rickshaws are a lifeline for a country suffering from air pollution.

2. Low operating cost

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

3. Rural connectivity is possible

Electric auto rickshaws are suited for rural roads with narrow shoulders. Electric e rickshaws are used in rural and village regions to reach significant towns or cities. It also has a larger turning radius, making it preferable in congested areas and locations.

4. Low operating expenses

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

5. Creating new job opportunities

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

Policies Framed by the Indian Government

The Indian government has framed many policies and assisted in increasing the usage of electric vehicles in India, which also includes electric rickshaws. Following are the list of some schemes launched by our government to help entrepreneurs start their business:

1. National Electric Mobility Mission (NEMMP), 2020

This policy was launched in 2013 by the Ministry of  Heavy Industries. This mission aims to attain fuel security in India through the usage of hybrid and e-vehicles. This mission aims to make 5-6 million electric vehicle sales by the end of 2020.

2. National Urban Livelihoods Mission, 2013

Launched in 2013, this scheme aims to reduce urban poverty by encouraging self-employment in India. As a part of this scheme, procurement assistance is provided to the owners by facilitating loans in cities like Jamshedpur, Ranchi etc.

3. Draft Taxi Policy, 2016

Introduced by the Ministry of Road Transport and Highways, it promotes urban mobility through battery rickshaws for last-mile connectivity.

4. Pradhan Mantri Mudra Yojana (PMMY) 2015

Pradhan Mantri Mudra Yojana provides loans to small businesses with a low rate of interest, relatable within five years, under the following categories:

  • Shishu: Loans up to Rs. 50,000
  • Kishore: Loans ranging from Rs. 50,000 to Rs. 5, 00,000
  • Tarun: Loans above Rs. 5, 00,000

This scheme applies to the purchase of electric passenger autos as well.

5. Subsidy by Fame 1

As a part of Faster Adoption of Electric/Hybrid Vehicles (FAME) 1, scheme subsidy ranging from Rs. 25,000 to Rs. 61,000 is provided by the Indian government for the purchase of electric rickshaws based on the model.

6. Subsidy Scheme by the Delhi Government

Rs. 15,000 is provided as a subsidy by the Delhi State Government to electric rickshaw owners for vehicles purchased before 2016. Rs. 30,000 is provided for vehicles who are purchased after 2016. Apart from this, Rs. 6,000 is provided by the Delhi Pollution Control Board and the Department of Environment.

Merits of Owing an Electric Rickshaw

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

1. Simple Financing: 

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

2. Best in Class Mileage: 

The electric auto rickshaw has the best mileage and the most distance per liter. As a result, fuel consumption is relatively low compared to other commercial public vehicles.

3. Superior Performance: 

Because of its higher torque and power, an electric rickshaw has better pick-up and variability, resulting in excellent performance.

4. Good Reselling Value: 

Buying an electric is a low-cost investment that also assures higher returns on resale.

5. No Profit Sharing: 

The most significant advantage of owning an electric auto rickshaw on your own is that you do not have to share profits with the drivers.