Start your own Industry of E-Rickshaw Assembling Unit: Startup Business Ideas

Here is a Detailed Project Report on E-rickshaw Assembling Unit, its process, market position, demands, investment opportunity and project financials. It comprises a comprehensive analysis of the industry. The report also includes plant capacity, requirement of land and building, raw material detail with supplier list, plant & machinery, flow sheet diagram, total Capital investment along with detailed calculation on rate of return, break-even analysis and profitability analysis.

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E-Rickshaw: Why is it an alternative to Auto Rickshaws?

E-rickshaw or Electric Rickshaw is, as the name suggests, an electric-powered Rickshaw. It runs on batteries instead of the traditional fuels, i.e, petrol, diesel, CNG.

It has been used as a replacement for auto rickshaws since 2008. It gained popularity due to its low management cost and easy to use modification in comparison to Auto rickshaw or pulled Rickshaw.

India and China are the biggest manufacturers of E-rickshaw, globally speaking. It gained its popularity in India around the 2010’s.

E-rickshaw is cost effective, while a CNG fuelled auto rickshaw travels 27 km per kg of CNG, an E-rickshaw goes upto 80 km per charge.

Now CNG costs ₹80 per kilo, which means if you travel with an auto rickshaw it costs ₹80 per 27 km and I am not even talking about petrol or diesel. A CNG base rickshaw costs you ₹2.1 or ₹2.3 per kilometre.

Now an e-rickshaw costs about ₹0.4 per kilometre and you can travel 80 kilometres in just ₹32 and around 200 kilometres in ₹80.

Indian E-rickshaw Law:

The High Court in New Delhi had banned e-rickshaw in the year 2014 over safety concerns, but then in the year 2015, the Indian parliament passed an amendment in Motor Act and legalized the use and riding of e-rickshaw.

Now the Government of India also issued there is no need to apply for permit for e-carts and e-rickshaw, under the Motor Vehicle Act 1988, section 66, and subsection Ⅰ. It also states, that “no owner of a motor vehicle shall use or permit the use of the vehicle as a transport vehicle in any public place whether or not such vehicle is actually carrying any passenger or goods save in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority.”

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The Government of India has made it easier for any e-rickshaw owner to start a business from scratch and due to this support from the customer and the government the E-Rickshaw Assembling Unit seems to be on the road to immense growth.

Reasons why people and the government support E-rickshaw:

➢ E-Rickshaw are Cheap and affordable:

An E-rickshaw can be bought for ₹95,000 whereas an auto-rickshaw costs about ₹200,000. As the e-rickshaw doesn’t have an engine so you don’t have to worry about it. The only maintenance fee an e-rickshaw owner has to pay is for its charging.

➢ E-Rickshaw doesn’t cost any Sound pollution:

E-rickshaw doesn’t have an engine, it doesn’t have a silencer. The engine of an e-rickshaw is powered by electricity and due to that it doesn’t make any noise or to be exact, it is less noisy than an auto rickshaw running on diesel or petrol.

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➢ E-Rickshaw are Eco-Friendly:

Now one of the most important reasons people and governments are turning towards E-vehicles is the impact fossil fuels have on our planet. The threat of global warming is inevitable, UN and The International Panel on Climate Change (IPCC) has given until 2050, before we can stop global warming. If we fail, there will be no way to stop it, E-vehicles might not stop it, but they can definitely push the deadline further.

➢ E-Rickshaw are low maintenance:

As I said before, it costs next to nothing for maintaining an e-rickshaw. The E-rickshaw doesn’t have the fuel based engine and its gearbox is cheap and easily replaceable. The battery can be charged at home, and even at the charging station, the charges are low and they are a lot lower than that of fuel-powered auto rickshaws.

➢ E-Rickshaw are safer:

The engine in the auto rickshaw wasn’t safe as it was powered by flammable fuels. But due to the engine of an e-rickshaw being electricity based, the danger is non-existent. The only danger is an electric shock, but the engine is coated with bad conductors for electricity, so even that isn’t an issue.

And reasons as such are causing all the support for electric auto rickshaw.

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E-Rickshaw Market and Growth Predictions:

The Indian Electric Rickshaw Market was valued about $1045 million as of 2020. And this was due the impact of Covid-19 and lockdowns that caused the market to fall.

According to some experts, The Indian E-rickshaw market will be worth about $1854 million by the year 2026. The CAGR is predicted to be 33% between 2021-26.

Auto Rickshaws are an integral part of Indian lifestyle. As of 2018 about 1.5 million battery powered auto rickshaws are on road in India and that number keeps increasing year by year.

North India is the largest market for e-rickshaw. About 70% of electric rickshaws are sold in North India as of 2017.

As of today, due to the low labour cost and high production rate, China is the largest importer of E-rickshaw.

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