E-Auto vs E-Rickshaw- What’s the right choice?

In recent times, there has been a greater emphasis on environmental sustainability. This requirement for an ecological balance on our planet has led to a change in the dynamics of urban transportation and three-wheelers are no exception. As per FADA May 23 report, currently, electric vehicles comprise only 1% of the entire vehicle market in India. But 83% of this 1% is made up of Electric Three-wheelers. In India, we are all used to affordable and readily available modes of transportation such as metro, buses, autos, and taxis, especially in urban areas. But these days we are seeing more and more three-wheelers on the roads.  The electric three-wheelers hold many benefits as compared to fossil fuel-run vehicles, these benefits are reduced carbon emissions, lesser noise pollution, and better and faster connectivity.

Electric Three-Wheeler Sales

In this blog, we’ll be comparing and analyzing the two types of these electric three-wheelers- E-autos and E-rickshaws. These vehicles are further divided into two segments- passenger carrier and goods carrier. Passenger carrier vehicles have a capacity of 2-5 passengers and are generally used for commuting and last-mile connectivity. One could save a 15 minutes long walk with only Rs. 15 with the help of E-Rickshaws, making it a time-saving and pocket-friendly option. 

Retail Data for all three-wheelers 

The above chart shows the retail data for all three-wheelers- Electric and Non-electric. As we can see, Non-electric three-wheelers are still more in use, but Electric three-wheelers have shown tremendous year-on-year growth and this figure is meant to grow for years to come.

So, these vehicles differ on several parameters like battery life, power, cost, infrastructural requirements, and regulations. 

• TRAVEL DISTANCE

E-Autos are three-wheeled electric vehicles that are mostly used for medium and long-distance commutes within a city, this is because it has higher-powered motors and bigger battery packs allowing them to achieve higher speeds and even function all day on a single charge. On the other hand, E-Rickshaws are used for short-duration trips i.e. within a locality. It is because of the smaller batteries that these vehicles cannot be operated for longer periods and are therefore required to be charged frequently (Drivers carry extra battery packs to increase earnings by reducing charging breaks). But, they are more compact which allows them to be more maneuverable in small localities and roads

• COST AND FACILITY REQUIREMENTS

Coming to the cost, E-Autos (starting from Rs 1.8 lakhs) are priced higher than E-Rickshaws (starting from Rs. 90,000) because of their heavier and more powerful components like the bigger batteries and motors. Even the infrastructure costs are higher because the larger batteries require proper industrial equipment and unit for charging. This availability of charging infrastructure is one of the main reasons for the widespread growth in the usage of electric autos. Charging stations are being set up by both private and public entities. These facilities are being made available in public areas like parking lots, residential complexes, etc. The vehicle operators can charge the batteries during breaks as these facilities are easily available at several locations now. The batteries that are found in the E-Rickshaws can be charged at home with a simple high-voltage charger that the manufacturers of the vehicles send along with the vehicle.

• REGULATIONS

As for the regulations, as both vehicles are being used for commercial purposes, the operators of both vehicles require the appropriate permits and documents that are issued by the state authorities. Electric autos are subject to the same regulations as other cars, including safety standards, emissions standards, and registration requirements. They must also meet emissions standards, which limit the amount of pollutants they can emit. Whereas, e-rickshaws are classified as "non-motorized vehicles," which means that they are not subject to the same safety standards and emissions standards as cars. However, e-rickshaws do need to be registered with the government, and they must also have a permit to operate.  

The E-Autos are put into the same segment as the CNG-operated-Autos and hence share the same regulations, hence sharing the same speed limit that shouldn't exceed 40 Kmph, whereas for E-rickshaws the limit is set at 25 Kmph as they are generally for last mile transportation.  

• LOAD CARRYING CAPACITY

Whereas, goods carrier electric three-wheelers are used for local deliveries and payload transportation. E-Auto loaders are used for bigger and heavier payloads to delivery/distribution centers and E-rickshaws loaders are used for further localized deliveries to congested areas. These carriers are used by vegetable vendors, local grocery shops, small-business owners, hardware shops, etc.

E-Autos in India are manufactured and distributed by Piaggio, Mahindra Electric, Greaves Cotton, and Unique International. And E-rickshaws are majorly produced by YC Electric Vehicle, Champion Poly Plast, Mini Metro, Electric Vehicles. Mahindra Electric, Piaggio Vehicles, and Omega Seiki are well-known producers of both E-Autos and E-Rickshaws. Below is the company and month-wise distribution of sales of all the companies irrespective of the type of vehicle they manufacture.

Distribution of Sales

The Indian Government has recognized this widespread growth of electric three-wheelers and has put several incentives in place to promote this growth further. The government introduced the FAME scheme (Faster Adoption and Manufacturing of Electric Vehicles) in 2015, it aimed at promoting the adoption of the usage of these vehicles, this program finances the upfront costs of these vehicles, provides subsidies on taxes, helps in the set up of charging stations and also provides other financial benefits. Institutions in association with the government also offer low-interest rates to potential owners of this vehicle. Vehicle owners are exempted from registration fees and road taxes imposed by the state governments. The government has also passed an improved scheme, FAME II which was applicable from June 1st, 2023.

Due to these government regulations and incentives, the market is experiencing exponential growth in this sector. People have started recognizing the need for cleaner modes of transportation and have hence started making these vehicles their preferred choice for transportation. There has also been a growth in the amount of these vehicles in tier 2 and tier 3 cities. This shows that there are tremendous growth opportunities in the future for this sector.

In conclusion, both E-Autos and E-Rickshaws are great options for transportation. E-Rickshaw companies while serving low-cost short-distance travel/goods requirements, are also raising their standards and following regulatory requirements. We foresee the lines between E-Autos and E-Rickshaws getting blurred going forward. But overall, these electric three-wheelers have revolutionized the transport market in India and have huge growth prospects.