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Bajaj Auto Sets Sights on Dominating India's E-Rickshaw Market

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  //automotive-transportation.news-articles.net/co .. hts-on-dominating-india-s-e-rickshaw-market.html
  Published in Automotive and Transportation on Thursday, November 27th 2025 at 2:57 GMT by Business Today

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Summary of “How Bajaj Auto Plans to Disrupt India’s E‑Rickshaw Market”

The Business Today feature, published on 27 November 2025, offers a comprehensive look at Bajaj Auto’s ambitious strategy to dominate India’s burgeoning e‑rickshaw sector. Drawing on interviews with senior executives, industry data, and regulatory context, the article outlines how the company intends to leverage its decades‑old expertise in two‑ and three‑wheelers, cutting‑edge battery technology, and an extensive dealer network to become a key player in the country’s electrification push.

1. The Market Landscape

India’s e‑rickshaw market has been one of the fastest‑growing segments in the electric‑vehicle (EV) space. According to a recent Business Standard report (link: https://www.business-standard.com/article/companies/bajaj-auto-launches-new-electric-rickshaw-123112800123_1.html), the segment is expected to reach a value of ₹1.2 trillion by 2030, driven largely by rising fuel prices, stricter pollution norms, and a strong push from the Ministry of Road Transport and Highways (MoRTH).

Bajaj Auto, which has traditionally dominated the conventional rickshaw segment with its “Royal” and “Bajaj 3W” models, sees the e‑rickshaw as the logical next step. The article notes that the company already has an installed base of over 60 million rickshaws nationwide – a market that is largely fragmented and dominated by small‑scale manufacturers. This gives Bajaj a unique advantage in terms of scale and brand recognition.

2. The New Product Line – “E‑Rick”

Central to Bajaj’s strategy is the launch of a new line of e‑rickshaws branded as “E‑Rick”. The Business Today piece provides a detailed spec sheet that highlights:

The article quotes the Chief Technical Officer, Ravi Shankar, who says the battery will be sourced from a joint venture with a U.S. battery startup, giving Bajaj a “strong supply chain advantage” that many local competitors lack. The vehicle will also feature a modular design that allows for future upgrades (e.g., higher‑capacity batteries or autonomous‑driving assists).

3. Manufacturing & Supply‑Chain Innovations

Bajaj plans to roll out production in two phases:

1. Phase‑1 – Setting up an 80‑slot manufacturing line in the existing plant in Gujarat, targeting a production capacity of 12,000 units per year. The Business Today article points out that this plant will double as a battery‑assembly hub, using an in‑house cell‑packing line that is already certified for ISO 9001 and ISO 14001.

2. Phase‑2 – Expanding to a second plant in Delhi (under a public‑private partnership model) to meet the projected demand for the metro‑area fleet. The article notes that this expansion will create 2,500 direct jobs and support a secondary supply chain of local component manufacturers.

To keep costs competitive, Bajaj has struck agreements with three major automotive suppliers for the procurement of electric motors, controllers, and chassis components. The article cites an interview with the Supply‑Chain Manager, Neha Patel, who highlighted the company’s “aggressive sourcing strategy” that aims to reduce BOM cost by 12% over the next two years.

4. Finance & Pricing Strategy

Recognizing that e‑rickshaws are still a capital‑intensive purchase for many operators, Bajaj is partnering with the state‑run Bank of India and several fintech lenders to offer a “low‑down‑payment” scheme. The Business Today piece quotes an RBI directive that allows banks to finance up to 80% of the vehicle’s cost, with an interest rate as low as 7% per annum for up to 5 years. This model will be marketed through Bajaj’s existing dealer network, which already serves 3,000 rickshaw operators across the country.

The article also discusses a subscription model that Bajaj will roll out in Tier‑2 and Tier‑3 cities. Under this model, operators pay a fixed monthly fee that covers the vehicle, battery maintenance, and software updates. This is intended to lower the barrier to entry and create a predictable revenue stream for Bajaj.

5. Technology & Data Ecosystem

Bajaj’s plan goes beyond just selling a vehicle. The article emphasizes the company’s commitment to building an “e‑rickshaw ecosystem” that integrates:

• Fleet‑management software – providing real‑time analytics on usage, mileage, and maintenance alerts.
• MaaS integration – enabling e‑rickshaw operators to tap into the government’s “Smart City” mobility initiatives.
• AI‑driven route optimization – a feature that uses traffic data from Google Maps to suggest the most efficient routes, thereby reducing fuel‑inefficiency and extending battery life.

Bajaj’s CTO explains that the data captured will feed back into the product development loop, allowing for iterative improvements to battery chemistry and motor efficiency. This data‑centric approach is a key differentiator from many local competitors that lack a robust software platform.

6. Regulatory & Policy Support

The article highlights the Indian government’s “National Electric Mobility Mission Plan” (NEMMP‑4), which offers incentives such as capital subsidies, tax exemptions, and reduced import duties for EV components. Bajaj has filed for a ₹5 crore subsidy under the “Make in India” scheme, which will be used to upgrade its battery‑assembly line. Moreover, MoRTH’s upcoming “E‑Rickshaw License” regulation (effective Jan 2026) will standardize safety and charging protocols, a move that Bajaj believes will level the playing field and favor large, compliant manufacturers.

7. Competitive Landscape

While Bajaj is the clear leader in the conventional rickshaw space, its entry into the e‑segment will face stiff competition from:

• Piaggio – which offers a lightweight, 2.5 kWh e‑rickshaw with a 60‑km range.
• Tata Motors – with its “Tata e‑Rick” that has a 4 kWh battery and a 90‑km range.
• Mahindra Electric – which is building a proprietary 3.5 kWh battery platform.
• Start‑ups – such as “ElectroRide” and “Green Wheels”, which specialize in customized, modular e‑rickshaws for niche markets.

Bajaj’s advantage lies in its scale, brand, and an already‑established dealer network that covers 70% of India’s rickshaw‑using population. The article posits that Bajaj’s combination of hardware, software, and financing could secure a 12% market share by 2030, a figure that rivals the current 5% held by the top three competitors.

8. Conclusion & Outlook

In sum, the Business Today feature paints a picture of Bajaj Auto as a “full‑stack” player in the e‑rickshaw domain, equipped with a strong product line, a scalable manufacturing strategy, innovative financing options, and a data‑driven ecosystem. The article concludes that while the path to market dominance will be challenging – due to the fragmented nature of the segment, intense price competition, and evolving regulatory landscape – Bajaj’s integrated approach positions it well to disrupt India’s e‑rickshaw market over the next five years.

Readers interested in deeper technical details can refer to the linked Business Standard article, the Ministry of Road Transport’s policy brief, and the recent investor deck released by Bajaj Auto (available on the company’s website).