The Global Electric Tuk-tuks Market is estimated to be valued at US$ 549.45 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 To 2031.
Electric tuk-tuks, also known as e-tuk tuks or electric auto-rickshaws, are battery-powered auto-rickshaws that provide a feasible means of public transportation, primarily in dense urban areas. They offer various benefits such as zero tailpipe emissions, lower operating costs compared to petrol/diesel variants, and reduced noise pollution. The growing demand for eco-friendly last-mile connectivity solutions and cost benefits of electric tuk-tuks is supplementing their adoption.
Key Takeaways
Key players operating in the Global Electric Tuk-Tuks Market Size are Adapt Motors, AG International Pvt. Ltd., Arna Electric Auto Private Limited, BABA E-Rickshaw, E-TUK Factory, Gayatri Electric Vehicles, Goenka Electric Motor Vehicles Private Limited, Hongsengmeng Group Co., Ltd., J.S. Auto Pvt. Ltd, Kinetic Green Vehicles, Mahindra Electric Mobility Limited, Mini Metro EV LLP, Singham (U.P. Telelinks Limited), SN Solar Energy, Terra Motors India, Victory Electric Vehicles International Limited, Zuperia Auto Pvt. Ltd. The key players are focusing on expanding their manufacturing facilities and production capabilities to cater to the growing demand for electric tuk-tuks across regions.
The growing demand for eco-friendly last-mile connectivity solutions across urban and semi-urban areas is one of the major factors driving the growth of the global electric tuk-tuks market. Besides, the decreasing prices of lithium-ion batteries and the rising investments by governments as well as major automakers in introducing affordable electric mobility solutions are further propelling the demand.
Advancements in battery technologies, such as lithium-ion and solid-state batteries, are enabling higher vehicle range per charge. Also, innovations in powertrain systems, motors, and power electronics are improving the efficiency and performance of electric tuk-tuks.
Market Trends
Increasing electrification of public transportation fleets: Various city administrations are actively working towards replacing their existing ICE-powered auto-rickshaw fleets with zero-emission electric models. This is expected to create lucrative opportunities for electric tuk-tuk manufacturers.
Developments in battery swapping infrastructure: Companies are investing in developing standardized batteries and swapping stations. This will address issues such as range anxiety and faster turnaround times for electric tuk-tuks.
Market Opportunities
Government support policies: Favorable regulations such as purchase incentives, tax exemptions, FAME subsidies, and investments in public charging/battery swapping infrastructure can accelerate the adoption of electric tuk-tuks.
Demand from rental fleets: Aggregator models for renting electric tuk-tuks on a pay-per-use basis can disrupt the mobility landscape in developing nations. This presents an attractive business case.
Impact of COVID-19 on Global Electric Tuk-tuks Market
The outbreak of COVID-19 pandemic has negatively impacted the growth of global electric tuk-tuks market in the short term. Factory shutdowns, supply chain disruptions and travel restrictions imposed by various countries to contain the spread of virus led to decline in production and sales of electric tuk-tuks in 2020. Many orders were postponed or cancelled during the peak of pandemic. Public transportation including electric tuk-tuks witnessed steep decline in ridership due to fear of infection. However, with economic activities restarting gradually post lockdowns, the demand is recuperating from 2021. The focus on personal mobility over public transportation is benefiting the electric tuk-tuks market. Furthermore, governments worldwide are promoting electric vehicles for environmental concerns which is creating new business opportunities. While social distancing norms may continue in long run, technology innovations making travel safer is key for industry’s robust growth post pandemic. Ridership is expected to rebound to pre COVID levels by 2023 once vaccination drives strengthen consumer confidence. Sustainable development plans emphasizing clean energy solutions will aid industry expansion in coming years.
The value for global electric tuk-tuks market is concentrated in South and East Asian countries including India, Thailand, Vietnam, Bangladesh and Indonesia. This is because tuk-tuks are a popular form of public transport in these regions. India has emerged as the largest market owing to government initiatives promoting use of electric vehicles for last mile connectivity in cities and villages. Thailand follows India in terms of market size due to higher usage of tuk-tuks as taxi cabs. While major markets in Asia will continue to drive significant demand, Europe and Latin America are witnessing fastest market growth for electric tuk-tuks currently due to policy focus on electro-mobility. Countries like Italy, Spain, Brazil and Mexico are increasingly adopting electric tuk-tuks for urban commute in small towns.
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