Is an Electric Rickshaw Worth the Investment in India?
With the rising demand for sustainable and cost-effective transportation, electric rickshaws, or e-rickshaws, have become a popular choice in India. But is investing in an electric rickshaw truly worth it? Let’s delve into the details, considering factors like operating costs, initial investment, and long-term profitability.
When evaluating the worth of an electric rickshaw, it’s essential to compare the operating costs with those of traditional diesel and CNG rickshaws. The operating cost of an electric rickshaw is significantly lower at ₹1 per kilometer, compared to ₹4.5 per kilometer for a diesel rickshaw and ₹3 per kilometer for a CNG rickshaw. This stark difference in daily expenses can lead to substantial savings over time.
The initial capital expenditure for an electric rickshaw is about 20% higher than that of a diesel or CNG rickshaw. Assuming the initial cost of a diesel or CNG rickshaw is ₹300,000, the cost of an electric rickshaw would be ₹360,000. This higher upfront cost might seem daunting, but the long-term savings can offset this initial investment.
If a rickshaw is driven 100 kilometers daily, the daily operating costs would be ₹100 for an electric rickshaw, ₹450 for a diesel rickshaw, and ₹300 for a CNG rickshaw. Over a month (30 days), the operating costs would accumulate to ₹3,000 for an electric rickshaw, ₹13,500 for a diesel rickshaw, and ₹9,000 for a CNG rickshaw.
To determine the break-even point, we need to calculate how long it takes for the lower operating costs of the electric rickshaw to offset the higher initial investment. The difference in initial investment is ₹60,000 (₹360,000 for electric vs. ₹300,000 for diesel/CNG). Monthly savings compared to diesel would be ₹10,500 (₹13,500 - ₹3,000), and compared to CNG, it would be ₹6,000 (₹9,000 - ₹3,000). Therefore, the break-even point compared to diesel is approximately 5.7 months (₹60,000 / ₹10,500) and 10 months (₹60,000 / ₹6,000) compared to CNG.
Once the electric rickshaw breaks even, it starts generating savings. To understand when it will start making 2x profit compared to diesel and CNG rickshaws, we need to look at the cumulative savings over time. For diesel, the monthly savings of ₹10,500 means it will take another 5.7 months to make 2x profit, totaling approximately 11.4 months. For CNG, with monthly savings of ₹6,000, it will take another 10 months, totaling 20 months.
Investing in an electric rickshaw in India appears to be a financially sound decision. Despite the higher initial cost, the significantly lower operating costs allow for a quick break-even point and substantial long-term savings. Within approximately 11.4 months compared to diesel and 20 months compared to CNG, an electric rickshaw not only recovers its additional investment but also starts generating double the profit.
For those considering the best electric auto in India, the benefits extend beyond just cost savings. Electric rickshaws contribute to a cleaner environment, reduce dependency on fossil fuels, and offer a quieter, smoother ride. Given the current trends and government incentives, the electric rickshaw price is likely to become even more competitive, making it an even more attractive investment for the future.
FAQ
1.Are electric rickshaws a good investment for commercial purposes?
Yes, the main advantage of electric rickshaws is the cost of operation is 3x lower than CNG and 4.5x lower than Diesel rickshaws. One can expect 2 times higher profits with electric rickshaws after operating it for 11months compared to Diesel and 20months compared to CNG rickshaws.
2.What is the average price of an electric rickshaw in India?
The price of an electric rickshaw varies from model to model depending on Payload capacity and driving range. The average ex-showroom price starts from ₹3.75 lakhs.
3.How does the cost of an electric rickshaw compare to traditional auto rickshaws in India?
Operating cost of electric rickshaw is around ₹1/km compared to ₹3/km for CNG rickshaw and ₹4.5/km for diesel rickshaws.
4.What is the range of a typical e-auto on a full charge?
Driving range of an e-auto depends on the size of the battery pack, passenger capacity, driving conditions. There are e-autos which deliver 80kms on a full charge and others which up to 180km on full charge.
5.How does the payload capacity of an e-auto compare to traditional tempo?
The Payload capacity is similar if not greater than a traditional tempo. Since e-autos have electric motor which offer very high starting torque ensures good drivability at higher payloads than traditional tempos.
