Why India’s E-Rickshaw Boom Has Slowed Down: Understanding the L5 Upgrade Shift

Key Highlights:

• E-rickshaw growth has stalled in the last 3–4 quarters.

• Drivers are upgrading to larger, better L5 EV autos.

• Major OEMs like Bajaj, Mahindra, and Piaggio intensify competition.

• Lead-acid e-rickshaws are losing demand due to range and durability issues.

• Bajaj expands EV lineup with new Riki e-rickshaw.

India’s three-wheeler market has been one of the fastest-growing mobility sectors over the past few years, especially with the rise of electric rickshaws. But despite this rapid expansion, the entry-level e-rickshaw segment is now facing an unexpected slowdown. Industry insights suggest that changing customer preferences, rising competition, and evolving product choices are reshaping the market’s direction.

E-Rickshaw Growth Stalls After Years of Strong Demand

India’s three-wheeler industry, crucial for last-mile connectivity, almost doubled its monthly sales from around 60,000 units (FY19–FY20) to 115,000–120,000 units today. A major contributor to this expansion was the entry-level e-rickshaw and e-cart segment, which now sells nearly 45,000 units every month.

These affordable vehicles became a popular mobility option across cities and small towns. However, over the last 3–4 quarters, the e-rickshaw category has stopped growing.

Samardeep Subandh, President of the Intra-City Business Unit at Bajaj Auto Ltd., confirmed this shift during the launch of Bajaj’s new e-rickshaw, Bajaj Riki, in Delhi. He described the slowdown as a “temporary stagnation” that reflects deeper market changes.

Also Read: Bajaj Riki Launched: New Long-Range E-Rickshaws Start at ₹1.91 Lakh in India

Why Demand Is Dropping: Customers Are Moving to L5 EV Autos

The biggest reason behind the slump is a mass migration of customers to the L5 electric auto segment. These larger, more robust EV autos fall in the next segment above e-rickshaws and offer better performance, comfort, and durability.

What’s driving this shift?

• Better product quality from major OEMs like Bajaj Auto, Mahindra, Piaggio, and TVS

• More reliable EV technologies, including lithium-ion batteries

• Higher earning potential for drivers due to better passenger capacity

• Safety, range, and durability issues with older e-rickshaws using lead-acid batteries

“There is a lot of action happening in the L5 EV auto category… so a lot of customers are upgrading here,” Subandh said, pointing to the stronger competition and wider choices now available.

Industry Moving Toward Larger CNG and Electric Autos

Subandh believes the future of India’s last-mile mobility will be dominated by the L5 category, covering both CNG and electric autos. The entry-level e-rickshaw, once the symbol of affordable urban mobility, may not grow at the same pace anymore.

“If looking into the future, the e-rickshaw may not grow as fast as it did in the past. I think it goes more towards L5,” he added, hinting at a long-term industry shift.

Bajaj Auto Strengthens Its Electric 3W Portfolio

Bajaj Auto, already a market leader with nearly 70% of India’s three-wheelers historically being Bajaj models, is actively expanding its EV lineup.

Recent Bajaj launches include:

• Bajaj E-Tec (2023)

• Bajaj GoGo (2025)

• New Bajaj Riki e-rickshaw (entry into the basic EV category)

With Riki, Bajaj aims to capture the slowing e-rickshaw segment while also strengthening its footprint in the fast-growing L5 EV auto market.

Also Read: 3ev Secures ₹120 Crore in Series A Funding Led by Mahanagar Gas Limited to Accelerate EV Expansion

CMV360 Says

India’s e-rickshaw boom may have slowed down, but the electric mobility landscape is far from losing momentum. Instead, the industry is undergoing a natural upgrade cycle where drivers prefer more advanced, higher-earning L5 EV autos. With major OEMs pushing innovation and expanding product lines, the future of last-mile mobility is clearly shifting toward larger, efficient, and more reliable electric autos—marking the next chapter of India’s EV evolution