Why India's autorickshaws went electric before its family cars

India's electric vehicle revolution is being led by an unlikely vehicle: the humble autorickshaw. While private electric cars remain a rare sight on Indian roads, electric three-wheelers are becoming commonplace, especially in cities like Delhi, Bengaluru, and Pune. The reason is simple economics.

For autorickshaw drivers, the math is compelling. An electric three-wheeler costs about Rs 3.5 lakh, compared to Rs 2.5 lakh for a CNG model. But the running cost is where the savings kick in. Electric rickshaws cost around 25 paise per kilometre to charge, while CNG costs about Rs 2 per kilometre. With daily runs of 100-150 km, drivers can save Rs 200-300 per day. That's a significant boost to their take-home pay.

Policy support has also played a role. The FAME II scheme offers subsidies for electric three-wheelers, and many states have waived road tax and registration fees. In Delhi, the government has set a target to electrify 25% of all new three-wheeler registrations by 2024. Other states are following suit.

Financing, once a hurdle, is now easier. Several banks and NBFCs offer loans specifically for electric three-wheelers, often at lower interest rates. Companies like Mahindra Electric, Piaggio, and startups like Euler Motors and Altigreen are ramping up production. Charging infrastructure, though still patchy, is growing. Battery swapping, where drivers exchange depleted batteries for charged ones, is gaining traction.

In contrast, the electric car market is stuck in the slow lane. High upfront costs, limited charging points, and a lack of affordable models keep buyers away. Tata Motors' Nexon EV, the best-selling electric car, starts at around Rs 14 lakh. That's out of reach for most families. Range anxiety and long charging times add to the hesitation.

The result: electric three-wheelers accounted for over half of all EV sales in India last year. According to industry data, around 3.5 lakh electric three-wheelers were sold in FY2023, compared to just 50,000 electric cars. The gap is widening.

For drivers like Rajesh Kumar, who switched to an electric rickshaw in Delhi last year, the decision was a no-brainer. "I save almost Rs 300 every day on fuel," he says. "The maintenance is also lower. I don't have to change engine oil or worry about clutch plates."

But challenges remain. The battery, which accounts for nearly half the vehicle's cost, needs replacement every 4-5 years. That's a Rs 1 lakh expense. Some drivers worry about the resale value of electric rickshaws. And while charging at home is cheap, public charging stations are few and often occupied.

Yet the trend is clear. As battery prices fall and more models hit the market, electric three-wheelers are set to dominate. For India's family cars, the wait continues.