E-rickshaw manufacturer, Udaan E-Vehicles will expand its operations by significantly scaling up its production capacity, and strengthening presence in high-growth markets such as Uttar Pradesh and West Bengal. The company, which competes with players like Electrotherm, Terra Motors and Hero Electric Vehicles in this space, also plans to step up research and development to launch improved e-rickshaws with powerful motors. It also plans to develop and create more products in commercial EV space like e-autos, e-cargos and four wheeler mini trucks.
“Growing concerns over pollution and the rise in stringent emission regulations have encouraged authorities to encourage electric rickshaws as a viable transport medium,” Mitull Batraa, co-founder of New Delhi-based electric rickshaw maker, told FE.
“We have achieved production of 100 vehicles per day and plan to increase this to 250 vehicles per day by next year. We have plans to invest Rs 100 crore in our operations in the next five years and triple our production capacity during this period,” Batraa added.
He said that there are approximately 11,000 new e-rickshaws being sold each month and the total number of these vehicles on Indian roads is around 1.5 million. “The government has rapidly increased implementations of public transportation systems like Metro, buses and subways which have led to growing demand of last-mile connectivity. Battery e-rickshaws offer affordable and eco-friendly last-mile connectivity, hence are in demand,” Batraa added.
He said that the company acquired a land bank of 2,61,360 sq ft at its Sonepat facility, of which it has developed 87,120 sq ft in the first phase. Batraa said that the firm has 180+ exclusive dealer network across North India, and has also established a dedicated R&D centre.
The upfront cost of an e-rickshaw is between Rs 1.5 lakh to Rs 2 lakh.
Udaan E Vehicles is completely bootstrapped. “We started with a mere turnover of Rs 7 crore in 2016-17. Last financial year, we crossed Rs 140 crore in revenue. And each year aim to double it. For future, we are open to funding opportunities, be it from bringing Udaan E Vehicles to listing platforms to raise public money or fundings from strategic alliances,” Batraa said.
The electric rickshaw market size in India stood at $1.2 billion in 2022. According to IMARC Group estimate, the market is expected to touch $2.3 billion by 2028, exhibiting a growth rate (CAGR) of 10.7% during 2023-2028. Uttar Pradesh is said to be the largest market, followed by Delhi NCR. Other major markets are Bihar, West Bengal, Tamil Nadu, Maharashtra and Assam.
