India electric rickshaws pass half of three-wheeler sales

Electric rickshaws have passed more than half of new three-wheeler sales in India, making battery-powered vehicles a dominant force in one of the country’s most visible transport markets.

In September, more than one in two new three-wheelers sold in India was electric, compared with about 8.5 percent of cars and 11.6 percent of two-wheelers.

At a Mahindra Last Mile Mobility plant, an electric three-wheeler rolls off the production line about every 90 seconds as workers and robots assemble battery packs, body panels and wheels.

Mahindra Last Mile Mobility chief executive Suman Mishra said the company’s EV penetration had grown sixfold in five years. She said adoption accelerated over the past two years as government subsidies, improving vehicle quality and lower operating costs made ownership more attractive.

For many drivers, fuel savings are the central argument. Afroz Alam, a 31-year-old driver in Hyderabad who switched from a gas-powered model to an electric vehicle this year, said lower charging costs save him several hundred rupees a day and help repay the loan for the more expensive electric version.

Indian think-tank CEEW estimated in 2025 that petrol three-wheelers cost more than twice as much per kilometre to operate over their lifetime as electric vehicles. Bidisha Bhattacharya of the Delhi-based Chintan Research Foundation said rickshaws accumulate fuel savings quickly because they operate throughout the day.

Adoption remains uneven. Mishra said limited parking and charging infrastructure make electric rickshaws less practical in Mumbai than in cities where they are already common.

Supply chains are another challenge. China restricted exports of rare-earth magnets last year, forcing several Indian automakers to cut or suspend production. India is promoting domestic manufacturing of battery cells, most of which are still imported from China and South Korea.