Electric rickshaws are a modernised version of the traditional motorised rickshaw. But there’s a catch: Auto-rickshaws use traditional fuels like gasoline and diesel, which pollute the environment, while electric rickshaws use batteries, which emit no pollution.
Obtaining an E Rickshaw Dealership is not difficult. You only need to contact several E Rickshaw manufacturers in India and decide who you want to work with based on brand recognition, E Rickshaw quality, after-sales service, and dealer margins, among other factors.
However, you must also meet the E-Rickshaw company’s minimal set of standards, such as land size and outlet location. So if you have decided to get an E-Rickshaw dealership in India, you are at the right place.
Here we will tell you about various E-rickshaw dealers, factors, and sources to fund your business.
Features of an E-Rickshaw
What distinguishes an e-rickshaw from a typical car or manual rickshaw? An E-rickshaw is a vehicle that meets the requirements of the Motor Vehicles Act 2014 and the Motor Vehicles Act 2015.
- The three-wheeled special-purpose battery-powered vehicle can carry no more than four passengers (excluding the driver) or 40 kg of cargo in total.
- The highest motor capacity is 4000 Watts, and the maximum speed limit is 25 km/hr.
Evolution of E-rickshaw business
According to research, there were 1.5 million E-rickshaws on Indian roads in 2018, which is more than the total number of electric automobiles sold in China in 2011.
This tremendous expansion did not occur in a single day. Even before sustainable transportation gained traction, the e-rickshaw began to win people’s hearts.
The following are some significant events in the evolution of India’s E-rickshaw industry:
- In the late 1990s, the Nimbkar Agricultural Research Institute (NARI) in Maharashtra attempted to construct the first electric rickshaw. The main goal at the time was to make adjustments to manual rickshaws. NARI created a pedal rickshaw with motor assistance.
- NARI invented the first electric rickshaw, ELECSHA, in the year 2000.
Benefits of an E-Rickshaw
Low maintenance
When compared to auto-rickshaws, the cost of maintenance for electric rickshaws is substantially lower. The vehicle’s spare parts are likewise not exclusive and can be obtained from any place depending on the requirements.
Suitable for connectivity
E-rickshaws are appropriate for rural locations with small roadways. E-rickshaws are used in rural and village regions to get to major towns and cities. It also has a larger turning radius, making it more suitable for high-traffic areas.
Opportunities for employment creation
On Indian roadways, more than a million and a half E-rickshaws are in use, boosting employment.
Why should you start an E-rickshaw company in India?
If you’re still not convinced that E-rickshaws are the next big thing in India, here are some selected data from multiple studies that demonstrate the e-rickshaw industry’s performance and prospective growth.
- Every month, around 11,000 new E-rickshaws are purchased in India.
- In 2021, it is expected that annual sales will increase by 9%.
- The electric vehicle sector in India is dominated by e-rickshaws, which have an 80% market share.
- Over 935.5 thousand units are expected to be sold by the year 2024.
So now, if you have already set your heart to do this business, then let’s know the requirements and the ways to achieve it.
E-Rickshaw dealership requirements
Space requirements
- For E-Rickshaws minimum requirement of the space is 400 sq. feet, while for E-scooter, it is 200 sq. feet.
- Seating for at least 3-4 people is required in VLEs.
- Basic amenities include male and female restrooms, drinking water for visitors, a first-aid kit, and a Type-A fire extinguisher.
- A person with good marketing skills and a strong technical background is required.
Investment requirements
- For E-Rickshaws, a security deposit of Rs. 2,00,000/- (two lakhs) is required for two vehicles.
- For E-Scooters, a security deposit of Rs. 1,00,000/- (Two lakhs) is required for two vehicles.
- VLE will obtain the dealership in 30 days as planned.
- The TC and Setup Process takes a long time. Even so, the procedure will be quick as compared to other dealers.
So now you know the requirements, you need to think of ways to meet the requirements. You need the investment to meet all the requirements.
Apply for Working Capital Loan
Government schemes
As the government encourages the use of E- Rickshaws, there are many schemes to help you with that.
The National Electric Mobility Mission (NEMMP)
The Ministry of Heavy Industries introduced it in 2013. The goal of this initiative is to achieve fuel security in India by utilising hybrid and electric vehicles. By the end of 2020, the goal for this objective is to sell 5-6 million electric vehicles.
PMMY (Pradhan Mantri Mudra Yojana) 2015
The Pradhan Mantri Mudra Yojana offers low-interest loans to small enterprises in the following categories, which must be repaid within five years:
- Shishu – Up to Rs. 50,000 in loans
- Kishore – Loans between Rs 50,001 and Rs 5,00,000
- Tarun – Loans in excess of Rs 5,000,000
This programme also applies to the purchasing of electric rickshaws.
The National Urban Livelihoods Mission
This programme, which began in 2013, aims to eliminate urban poverty by fostering self-employment. Procurement help is provided to owners/operators by facilitating loans in cities such as Jamshedpur and Ranchi as part of this scheme.
As it is a micro and small business, it is also eligible for MSME loans. This scheme was created by the Ministry of Micro, Small, and Medium Enterprises to ensure that current or new MSMEs receive loans of up to Rs. 1 crore with no collateral.
Bottom line
So there are many opportunities for you to start and run your business if you want to. You can easily get the E-Rickshaw dealership. You just need to make sure that you complete the basic requirements that are needed for the dealership.
You can look for machinery loans, or you can opt for ZipLoan, which provides you business loans up to 7.5 lakh, too, in just three days. If you have any queries related to business loans contact us today.
Frequently Asked Questions
Here is how to start an e-rickshaw business:
1) Pay attention to appearance
2) Have a multi-directional approach
3) Stay close to your competitors
4) Learn the art of negotiation
A common 4 seater e-rickshaw will cost around Rs. 50000 to Rs 175000.
1) Bajaj RE EV
2) Mahindra Treo
3) Kinetic Safar
4) Piaggio Ape E-city
5) E-shaft Gayan motor works (GMW)
E-rickshaws provides eco-friendly transportation at an affordable cost to the masses; it has been a profitable and viable business option for India’s entrepreneurs.
There are mainly two types of e-rickshaw in India currently. One is an improvised electric cycle rickshaw, which is essentially a tri-cycle with an electric motor fitted at the back to reduce manual labour for the rickshaw puller.
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