The rickshaw revolution in India. What does electrification look like using the example of "three-wheelers"?

**The Rickshaw Revolution in India: How Electrification is Manifesting Through "Three-Wheelers"**

Rickshaws are almost always present in movies, music videos, and street scenes filmed in India. These three-wheeled vehicles have been an essential mode of transport for decades. At one time, there were millions of pedal-powered rickshaws in the country. The driver sat in the front, while two or three passengers were accommodated in the rear.

The fare was only a few rupees. For this reason, rickshaws, even if they moved slowly, became one of the cheapest means of getting around the city. However, for the drivers, this profession was not very pleasant. This was because they transported passengers and cargo by pedaling, and furthermore, they were forced to work in any weather. Despite working 10-12 hours every day, their earnings were not even enough for a middle-class family to have a single meal at a McDonald's chain.

Today, this scene, which has become part of our perception of Indian streets, is changing rapidly. Pedals are gradually becoming a thing of the past, and electric motors are taking their place. Even the elderly and women are entering this field. Because of the electric motor, heavy physical labor is no longer required from the driver. In addition, this also shows how India is transitioning to "green transport" through the example of rickshaws.

As of 2021, the number of registered e-rickshaws across India was 78,700. Since then, this number has increased to 1.8 million. In addition, there are many more unregistered electric rickshaws on the country's streets.

The new vehicles are gradually squeezing out of the market not only traditional pedal-powered rickshaws but also auto-rickshaws powered by internal combustion engines. Auto-rickshaws are built sturdier than e-rickshaws. They also protect passengers better from the sun and rain. But in terms of speed, there is a big difference between them. E-rickshaws travel at an average speed of 25 km/h. In auto-rickshaws, this figure is twice as high.

Nevertheless, the spread of e-rickshaws in Indian cities continues very rapidly. It has become a common sight to see them lined up in front of railway stations and busy centers. It is even possible to order an electric rickshaw via Uber.

**The Revolution Starts in Garages, Not Large Factories**

As mentioned above, the transition to green energy vehicles in India is drastically different from other countries. In almost all major countries of the world, electric vehicles are manufactured in large factories. The e-rickshaws that are becoming increasingly popular in India, however, are mainly assembled in warehouses, garages, and makeshift workshops.

According to BloombergNEF, at least 70 percent of three-wheeled electric vehicle sales in the country, including rickshaws, come from this informal manufacturing sector. Naturally, mechanics in small workshops work on the principle of manual assembly. They mount a box-shaped metal body onto a three-wheeled frame. Then they connect the motor and batteries to it. Most of these parts are imported from China.

Although e-rickshaws are successors to the pedal rickshaw tradition, they are larger and much more powerful than the old models. There are two seats in the back, and the tires are thicker. In terms of chassis, e-rickshaws are designed to carry more load than traditional rickshaws.

**Unemployment and a New Profession for Youth**

Widespread unemployment in India is also driving the expansion of the informal e-rickshaw industry. Young people join such workshops and learn to assemble electric rickshaws directly on the job. In this way, small workshops serve simultaneously as manufacturing enterprises and a kind of vocational school. However, the future of this informal sector is not guaranteed.

The reason is that major auto-rickshaw manufacturers like Mahindra, Bajaj, and Piaggio are also entering the e-rickshaw market. If they start rolling thousands of rickshaws off assembly lines every day, the market share of small workshops may shrink.

Despite the rapidly increasing supply in the market, the price of e-rickshaws remains expensive for buyers. They can be purchased for an average of 130,000 rupees, which is nearly $1,400. This is about five times more expensive than a pedal-powered rickshaw.

Therefore, many drivers cannot buy an e-rickshaw all at once. To solve this problem, they are increasingly turning to microfinance institutions. For example, the loan portfolio allocated by LokSuvidha Finance Ltd. for the purchase of e-rickshaws reached 2.8 billion rupees (about $30 million) in March. This is a 46 percent increase compared to a year earlier.

On the other hand, the pursuit of low prices also makes safety an urgent issue. Some manufacturers bypass relevant requirements and sell e-rickshaws for just 60,000 rupees. In such vehicles, batteries with uncertified quality, weaker steel materials, and low-quality tires may be used.

Delhi officials estimate that approximately 400,000 e-rickshaws operate on the city's streets. But only half of them are registered. For passengers, it is very difficult to distinguish between registered and illegally assembled rickshaws. To the untrained eye, they all look almost identical.

At the same time, while electric rickshaws reduce the driver's physical labor, they also help increase their income. This is because electric rickshaws can travel longer distances and accept more bookings. In addition, fares for e-rickshaws are higher than for pedal rickshaws.

Currently, some drivers also use their passenger e-rickshaws to carry light cargo. In addition, there are special models converted into small trucks. They can carry up to 700 kilograms of cargo.

**Photo: Bloomberg**

**The Government Sees E-Rickshaws as an Ecological Solution**

The Indian government views e-rickshaws as one of the means to reduce air pollution in the country and lower dependence on imported oil. About twenty years ago, Delhi banned gasoline and diesel-powered auto-rickshaws, allowing only models running on compressed natural gas (CNG).

However, the capital administration intends to stop registering gas-powered auto-rickshaws starting in January. After that, only e-rickshaws will be eligible for registration. Other regions are also gradually introducing similar regulations.

But the rapid increase in e-rickshaws has created another problem for the government. Due to worsening traffic congestion on Delhi's streets, authorities suspended the process from November last year until May. The police, meanwhile, intensified raids against unregistered vehicles.

According to one of the new requirements, a rickshaw can now only be registered by its owner. The purpose of this is to prevent the expansion of businesses that buy multiple rickshaws and profit by renting them out.

Even though e-rickshaw drivers do not physically pedal, they now face new challenges such as battery and electricity costs. Most electric rickshaws in India still use lead-acid batteries. They resemble the heavy and bulky batteries used in gasoline cars. Usually, they last only one or two years. For this reason, battery rental services have also emerged.

Dilip Kumar, who drives a rickshaw in Delhi, pays 100 rupees (about $1) every day for a battery. He leaves his old battery as collateral. To escape this problem, drivers are increasingly interested in lithium-ion batteries. Today, this technology is used in a wide range of products, from smartphones to modern electric vehicles.

Lithium-ion batteries have three main advantages: they are lighter, last longer, and charge faster. But the price issue remains the main obstacle. Lithium-ion batteries are much more expensive than lead-acid batteries. Therefore, most drivers continue to use the cheaper option.

In addition, long queues have begun to appear at charging stations. For this reason, informal charging points have emerged in low-income neighborhoods and slum areas. Such places are located on roadsides or in narrow alleys. Since electrical cables run densely through these areas, the importance of the technical safety factor increases.

However, informal charging stations are not the only problem that has arisen with the increase in electric rickshaws. Because the need for charging is high, the long queues formed on the streets have also moved to charging stations. This is especially visible at night, as drivers come at this exact time to charge their rickshaws.

**A New Microeconomy Around the Rickshaw and Opportunities for Internal Migrants**

As the number of electric rickshaws has increased, an entire microeconomy serving these vehicles has formed in Indian cities. Small shops and workshops have begun selling wheels, rims, headlights, horns, speedometers, seats, and other parts for rickshaws.

Some workshops have even specialized in upgrading and decorating rickshaws. They deal with installing new covers, audio speakers, and various decorations. As a result, an ecosystem consisting of mechanics, spare parts sellers, battery renters, charging point owners, and credit institutions has emerged around a single e-rickshaw.

This process is particularly visible in the lives of millions of Indians living in poverty. When the previous generation came from villages to big cities due to poverty or drought, they mainly engaged in heavy physical labor to make a living. Pedaling a rickshaw or pulling handcarts loaded with cargo were among them.

In modern Indian cities, relatively lighter jobs such as delivering food and orders are also becoming widespread. But to earn an income this way, one needs at least a smartphone, a bank account, a bicycle or scooter, and often a driver's license. Millions of people, however, cannot meet these requirements.

Therefore, heavy jobs requiring physical labor still remain the main source of income for them. Although the e-rickshaw is expensive, it is one of the life-changing opportunities for such people. Many dream of owning their own rickshaw in the future.

Sheikh Mehboob, 32, who lives in Delhi, is one of those people. He drives a traditional pedal-powered rickshaw.

"Many drivers who used to pedal alongside me now own e-rickshaws. They are doing better than me. I also want to buy one, but I am not having luck with the money," he says.

**Another Face of the Electric Vehicle Revolution**

The Indian experience shows that the transition to electric vehicles is not only associated with modern cars, large factories, or billion-dollar companies. It is clear that the e-rickshaw is not a technologically complex electric vehicle. Some of them do not even meet safety requirements. In addition, e-rickshaw batteries are old, and the charging infrastructure is insufficient. Unregistered vehicles also remain a major problem.

Nevertheless, they simultaneously perform several functions, such as reducing the driver's physical labor, increasing their daily income, and paving the way for the formation of small businesses. At the same time, they help the government reduce harmful emissions from transport.

Most importantly, the electric vehicle revolution in India is starting not from the top, i.e., large factories, but from the city streets. For millions of people, this is not just a new vehicle. Rather, it is an opportunity to escape hard labor, earn a better income, and one day own their own business.