Could you tell what inspired you to start your company in this particular sector?
I co-founded Udaan in 2015 and the idea of the venture stemmed from the need to offer a sustainable medium for urban mobility in India. In addition to environmental aspects, we also took into consideration the affordability and last-mile connectivity issues into consideration before launching e-rickshaws and e-cargos under the brand name of Udaan. Since inception, our constant endeavours to offer superior products with unmatched quality have made us the preferred choice of buyers in the electric 3-wheeler market.
These e-rickshaws are very popular in certain cities, yet despite their advantages, other cities have been slow to adopt these. Why do you think that is?
The popularity of e-rickshaws in certain cities in India can be attributed to their numerous advantages, such as being environmentally friendly, cost-effective, and a convenient mode of last-mile transportation. However, the slow adoption of e-rickshaws in other cities across India could be attributed to a variety of factors.
One primary concern may be the lack of supportive infrastructure, including charging stations and maintenance facilities, which is crucial for the widespread acceptance of electric vehicles.
Additionally, there may be regulatory hurdles and a lack of clear policies pertaining to e-rickshaws in some regions, leading to uncertainty among potential operators and investors.
Economic factors, such as the initial cost of purchasing e-rickshaws and limited awareness about the long-term savings, may also contribute to the reluctance of some cities to embrace this sustainable transportation option. Addressing these challenges through infrastructure development, regulatory clarity, and awareness campaigns could potentially accelerate the adoption of e-rickshaws in cities that have been slow to embrace this eco-friendly mode of transportation.
We have seen these e-rickshaws are more popular in rural areas. How are you marketing to these customers?
Since the start of 2023, India has witnessed sales of around 90,000 EVs per month and the encouraging thing is that this demand is transcending beyond metro regions. A significant chunk of EV sales are now coming from tier 2 & tier 3 cities and going forward, this trend will help the country to make a fast transition to clean energy. Importantly, this shift in demand is also creating new opportunities in manufacturing, supply chains, and technology development, thereby helping these regions to take their growth story to a different level altogether.
What kind of service life these vehicles have, and what is the method for recycling these?
Recycling methods for e-rickshaws primarily focus on managing their key components, especially the batteries. Electric rickshaws typically use lead-acid or lithium-ion batteries. Lead-acid batteries, if not properly managed, can pose environmental hazards due to the lead content. Therefore, recycling centers often follow processes to safely extract lead from these batteries for reuse. On the other hand, lithium-ion batteries, which are becoming more prevalent, involve more sophisticated recycling methods to recover valuable metals like lithium, cobalt, and nickel. The recycling process for lithium-ion batteries aims to minimize environmental impact and promote the circular economy by reusing these valuable materials in the production of new batteries.
Apart from batteries, other components of e-rickshaws, such as metal frames and plastic parts, can be recycled through standard methods. The recycling of e-rickshaws is crucial to mitigate environmental impact and ensure that the transition to electric vehicles remains sustainable throughout their lifecycle. Government regulations and industry initiatives often play a role in establishing and promoting responsible recycling practices for electric vehicles, including e-rickshaws.
What kind of regulation changes from the government would make it easier for customers to adopt these vehicles?
Several regulatory changes from the government could significantly facilitate the adoption of electric rickshaws and make it easier for customers to embrace these vehicles. Firstly, implementing clear and supportive policies that offer incentives and subsidies for the purchase of e-rickshaws can encourage both operators and individual buyers to make the transition from traditional fuel-powered vehicles. Financial incentives, tax breaks, or subsidies on the initial purchase cost and ongoing operational expenses, including charging infrastructure development, can substantially lower the overall cost of ownership.
Moreover, establishing a robust and standardized charging infrastructure is paramount. Governments can play a crucial role by investing in the creation of a widespread network of charging stations, making it convenient for e-rickshaw owners to recharge their vehicles, addressing one of the common concerns related to electric vehicle adoption. Streamlining the approval processes for setting up these charging stations and offering incentives to private entities to invest in charging infrastructure can expedite the expansion of this network.
Additionally, formulating and enforcing clear regulations related to the operation and maintenance of e-rickshaws can enhance consumer confidence. Setting safety standards, specifying licensing requirements, and implementing periodic vehicle inspections can ensure that e-rickshaws adhere to high-quality and safety standards, fostering trust among potential users.
