The electric three-wheeler, which is becoming increasingly popular, can be considered if we are to see a significant EV revolution anyplace in the nation. E-rickshaws are commonplace, whether used by low-income individuals who are sick of pulling the loads for rickshaws or by middle-class individuals who perceive an opportunity to launch a new mobility company. The study from NITI Aayog states that 79% of all EVs sold in India are three-wheelers. This industry is currently driving India's auto industry toward electrification.

According to estimates, the Indian electric rickshaw market would be worth USD 1.1 billion in 2021 and USD 2.8 billion in 2027, representing a CAGR of more than 11%. (2022 – 2027).

However, the sector has to confront a lot of downs due to large curfew-like conditions in COVID-infection hotspots and as a result of lockdowns. The COVID-19 pandemic has hampered the growth of India's electric rickshaw industry. The impact of the virus resulted in a decline in demand for shared electric mobility services. Consequently, e-rickshaw investment by mobility service providers is discouraged.

With a focus on two- and three-wheelers, cabs, and buses, the Indian government is currently supporting electric vehicles in fleets and public transit. by putting in place FAME II regulations pertaining to the Indian market. As a result, it is projected that the market will grow steadily.

E-rickshaws are in high demand because of their acceptable affordability, ability to navigate packed city streets and low cost of transportation. They are also becoming more well-liked among businesspeople because they offer the possibility of last-mile delivery at a low cost, which supports a lot of profit.

Consumer interest in e-rickshaws is also growing as a result of tighter emission restrictions, increased fuel prices, incentives, and a larger variety of e-rickshaws. because the Tier-1, Tier-2, and rural-urban markets are seeing an increase in demand for these rickshaws. During the anticipated era, Uttar Pradesh may have India's largest e-rickshaw market.