E-rickshaws are better for Indian cities than traditional three-wheelers. What is holding them back?

In the crowded streets surrounding Delhi’s mass transit hubs, among scores of three-wheelers with sputtering engines, one can frequently find e-rickshaws, their electric motors humming quietly. These battery-powered autos offer livelihoods to thousands of people in the capital, provide last mile connectivity to many more, deliver goods, and reduce air pollution. And yet, they are far from being ubiquitous in Delhi, or elsewhere in India.

One key barrier to the electric transition in the country is the high upfront cost for borrowers. Another hurdle is the uncertainty about the longevity and future uses of components like batteries. Moreover, much of the market in the country is informal, further complicating access to credit. If India wants to create a climate-friendly, sustainable transport ecosystem, these issues will need to be addressed.

At present, for each passenger car, there are five two- and three-wheelers, according to the International Energy Agency’s India Energy Outlook 2021 report. This asymmetry could hold significance for India. Until now, electrification of road transport in the country has largely been driven by electric scooters, motorbikes, small goods carriers and rickshaws. “The number of electrified two‐ and three‐wheelers has grown by more than 60% each year on average since 2015, and there were 1.8 million such…

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