The desi rickshaw is getting sexed up. And it has global ambitions

A bluetooth-enabled ‘auto’ rickshaw? Or how about one with angular windshields for better visibility and collision protection? Or a heat-reducing paint for the roof and interiors made of water-resistant materials, to withstand India’s long summer and monsoon seasons?

The ‘auto’ in the humble desi auto rickshaw is not just getting a leg up by going electric, it is getting all sexed up with global majors looking at it with new eyes as a solution to India’s, and the world’s, traffic woes.

“These innovative micro-mobility solutions will not only cater to the Indian market but also has the potential to disrupt urban mobility in key global markets like Europe and Asia,” said Tarun Garg, COO of Hyundai India, which unveiled two models, a three-wheeler, as well as a four-wheeler, specifically aimed at micro-mobility.

The ubiquitous ‘rick’ on India’s streets is in for a makeover, with companies ranging from global biggies like Hyundai to local biggies like TVS and Kinetic intent on giving it a makeover. The reason isn’t hard to find — amidst India’s notorious gridlock that is a daily reality on urban India’s streets, the three-wheeler is considered a quick-fix solution, and even better, it works better both as a commercial goods carrier, as well as an urban last mile passenger mobility solution.

There is a reason. Electric three-wheelers have been flying off the…er…shelves over the past few years, as a range of businesses, ranging from food delivery services to e-commerce logistics providers to even small businesses ferrying raw materials have found it to a cost-effective solution. Vehicle manufacturers and EV startups also latched on to it as they discovered that while the rickshaw market, in its combustion engine format, was virtually a monopoly with Bajaj, the electric variant field was wide open for the taking.

The result? Last year, India surpassed China as the world’s biggest maker of electric three-wheelers, with a projected growth of more than 13% over the next nine years or so, according to IMARC Group. Of the 40 lakh or so three-wheelers sold in India in 2023, about 10 lakh were electric, perhaps the biggest percentage in electric adoption amongst any vehicle category.

“A three-wheeler is a business purchase, and last-mile mobility companies are looking at it as it is opex (operational expense) is much cheaper than a CNG or petrol. And you don’t have to waste your business hours queuing up at a CNG filling station,” said Ishaan Parwanda, director, Trinity Touch, an industrial electrical applications solutions provider.

Another attraction is regulations in the electric three-wheeler space is lax compared to other categories. And the supply chain ecosystem already exists, considering that India has a solid history when it comes to three-wheelers.

“Manufacturing one is easier than the ICE ones. So I guess, everyone is seeing the opportunity,” added Parwanda. “The export market potential is also crucial since three-wheelers are in use in many South East Asian nations.”