India Electric Cargo Bike Market Size, Share, Competitive Landscape and Trend Analysis Report, by Vehicle Type, Type, Application, Range and Power Output : Global Opportunity Analysis and Industry Forecast, 2023-2032

The India electric cargo bike market was valued at $148.3 million in 2022, and is projected to reach $760.9 million by 2032, growing at a CAGR of 18.4% from 2023 to 2032.

Electric cargo bike is an electric bike designed to carry cargo, freight, or heavy loads. It is fitted with an electric motor that aids the pedaling efforts of a rider. It facilitates the transportation of large loads and enhances maneuverability in urban settings. The use of an electric bicycle extends pedaling duration compared to a standard bike, enabling greater distances. The components of electric cargo bikes include electric motor, battery, brakes, frame, fenders, and drivetrain. The types of electric cargo bike comprise front loaders, mid-drive loaders, and rear loaders. Electric cargo bikes have become increasingly popular as eco-friendly alternatives to traditional delivery vehicles, especially in urban areas. Electric cargo bikes include electric bicycles and electric motorbikes.

Key Takeaways

• On the basis of vehicle type, the electric motorbike segment held the largest share in the India electric cargo bike market in 2022.
• On the basis of type, the front loader segment held the largest share in the India electric cargo bike market in 2022.
• By application, the personal use segment held the largest share in the market in 2022.
• On the basis of range, the above 50 km segment held the largest market share in 2022.
• By power output, the above 751 W segment held the largest share in the market in 2022.

The rise in e-commerce activities has spurred a need for efficient and eco-friendly last-mile delivery solutions.  Electric cargo bikes have gained traction as a practical alternative to traditional delivery veicles, particularly in busy urban areas where flexibility and accessibility are crucial. Government initiatives promoting electric vehicles and emissions reduction have created a favorable regulatory environment, encouraging businesses to invest in electric mobility solutions through incentives such as subsidies and tax breaks. With rise in awareness of environmental concerns, there is a shift toward eco-friendly transportation options, with electric cargo bikes emerging as a sustainable choice due to their zero-emission operation. The India electric cargo bike market growth is increasing due to several factors, including the increasing adoption of sustainable transportation solutions and the rising demand for efficient urban logistics.

Collaborations among EV manufacturers, logistics firms, and e-commerce platforms have hastened the adoption of electric cargo bikes in India. Partnerships such as the one among Hero Lectro, Fast Despatch Logistics, and Turtle Mobility facilitate the leasing and deployment of electric cargo bikes for last-mile delivery. These bikes offer substantial cost savings compared to traditional vehicles, including lower fuel and maintenance expenses. Their compact design and maneuverability enable quicker delivery times and enhanced efficiency, especially in navigating congested urban traffic. India electric cargo bike market analysis reveals a dynamic and rapidly growing sector. The India electric cargo bike industry is driven by the increasing need for sustainable and efficient urban logistics solutions. The India electric cargo bike market opportunity is expanding rapidly, fueled by government incentives and a growing emphasis on sustainable transportation solutions.

The growth of the India electric cargo bike market is majorly driven by rise in cross-border conflicts and geopolitical tensions, developments in hypersonic technologies, and increase in defense budget. However, technological challenges and high costs hinder the growth of the market. On the contrary, advancements in scramjet technology for India electric cargo bike and military modernization are anticipated to offer remunerative opportunities for the players operating in the India electric cargo bike market during the forecast period.

Segment Review

The India electric cargo bike market is segmented on the basis of type, application, range, power output, vehicle type, and region. By type, it is bifurcated into front loader and longtail. By application, it is fragmented into personal use, delivery & courier, waste & municipal services, and others. By range, it is divided into less than 50 km and more than 50 km. By power output, the market is segmented into less than 250 W, from 250 W to 400 W, from 401 W to 750 W, and above 751 W. By vehicle type, the market is bifurcated into electric bicycle and electric motorbike.

By Vehicle Type

On the basis of vehicle type, the electric motorbike segment generated maximum revenue in 2022, owing to an increase in use of electric motorbikes by businesses and organizations that require carrying heavier loads during delivery services, operating in challenging terrains, or covering longer travel distances. The increased power and load-carrying capacity make electric motorbikes suitable for applications such as inter-city deliveries, rural logistics operations, and specialized cargo transportation services. Moreover, local EV manufacturers are increasing storage capacity of vehicles to fulfill all utility requirements. For instance, in February 2024, Qargos, the Pune-based electric vehicle startup, unveiled the F9, Qargos' cargo electric scooter. The F9 boasts one of the largest storage capacities, with a massive 225-liter capacity, and a prominent "block-shaped" front section. The Qargos F9's 3.4 kW BLDC hub motor powers its powertrain, which allows it to reach a top speed of 80 kmph. In contrast, the battery setup includes a 6.1 kWh Lithium-ion battery, which gives a 150 km claimed real-world range.

By Type

On the basis of type, the front loader segment generated maximum revenue in 2022, owing development of electric cargo bikes with a maximum carrying capacity designed with a front cargo box or basket, allowing efficient transportation of packages, groceries, and other items. In addition, there is a rise in the development and adoption of electric cargo bikes for last-mile delivery and advanced technology. For instance, in July 2021, Zypp Electric, an Indian EV startup focusing on last-mile delivery, introduced a cargo two-wheeler tailored specifically for last-mile delivery purposes. This heavy-duty electric scooter has been engineered for last-mile logistics, boasting a loading capacity of up to 250kg. With an average mileage of 120 km and a battery capacity of 40 Ah, it features swappable batteries and accommodates dual battery systems. The initial launch is expected to target the Delhi NCR region.

By Application

On the basis of application, the personal use segment generated maximum revenue in 2022, as there is a rise in the demand for electric cargo bikes as more people replace private car trips with other commuting options. Electric cargo bikes are equipped with specially designed seats or compartments for carrying children safely. They are increasingly adopted for personal use, serving as a practical and eco-friendly mode of transportation. Individuals utilize these bikes for running errands, commuting short distances, and carrying groceries or other household items. The rise in awareness of sustainability and the desire for an active lifestyle have contributed to the rise in personal use of electric cargo bikes.

By Range

On the basis of range, the above 50 km segment generated maximum revenue in 2022, owing to the rise in the adoption of electric cargo bikes with above 50 km range for long extended travel requirements and long-distance transportation of goods and personnel. Electric cargo bikes with a range exceeding 50 km are designed for extended travel requirements and long-distance transportation of goods and personnel. These bikes are well-suited for businesses operating across multiple cities or states, as well as individuals with longer commuting needs or those living in rural areas.

By Power Output

On the basis of power output, the above 751 W segment generated maximum revenue in 2022, owing to the need for e-cargo bikes with high power output in the industrial settings, large-scale construction projects, and for transporting heavy equipment or machinery over long distances. Electric cargo bikes with power outputs exceeding 751W are typically employed in specialized applications that demand exceptional load carrying capacity and performance. While the demand for such high-powered electric cargo bikes is relatively niche, their unique capabilities make them indispensable for businesses operating in specific industries or environments where traditional modes of transportation are not suitable

Competitive Analysis

The key players profiled in the India electric cargo bike market include Quantum Energy, Aurita Bikes, TAV Systems Pty Ltd., Spero, Austhraa, Vikebike India Pvt. Ltd., Evolet India, Green Shuttle Technology Pvt Ltd, Godawari Electric Motors Pvt Ltd., and eBik. These companies are engaged in the production of electric cargo bikes across India. Moreover, the key players in the electric bicycle market are Hero Lectro E-Cycles, Nexzu Mobility Ltd., INKODOP TECHNOLOGIES PRIVATE LIMITED (EMotorad), Geekay Bikes, Stryder Cycle Private limited, Virtus Motors Private Limited, Trek Bicycle Corporation, Outdoors91, Motovolt, and UBoard. The prominent players in the electric bicycle rentals market are Hala Mobility, Yulu Bikes Pvt Ltd, ScooEV, EBikeGo, Zypp Electric, Bounce, EXA Mobility India Private Limited, Shride India Pvt. Ltd., EVeez, and Chartered Bike.

Rise in Cross-Border Conflict and Geopolitical Tension

Increase in geopolitical tensions has fostered the demand for advanced military capabilities to deter potential adversaries. India electric cargo bike offer a unique strategic advantage due to their ability to deliver payloads at incredibly high speeds, making them difficult to intercept and providing a credible deterrent against adversaries. Countries facing geopolitical threats may seek to bolster their military capabilities, including their ability to conduct precision strikes deep within enemy territory.

India electric cargo bike provide a rapid and highly precise means of delivering conventional or nuclear payloads, offering decision-makers more options for responding to emerging threats. Moreover, geopolitical tensions can fuel an arms race among nations, with each seeking to outmatch the other in terms of military capabilities. The development and deployment of India electric cargo bike can become a focal point in such competitions, as countries strive to gain an edge over their adversaries, which is anticipated to boost the growth of the India electric cargo bike industry.

Government incentives and subsidies are important in increasing the use and adoption of electric vehicles, including cargo bikes. These measures include various forms such as tax credits, grants, purchase subsidies, and exemptions from specific taxes or fees. By mitigating the initial costs associated with electric cargo bikes, these incentives enhance their affordability for businesses, thereby fostering increased adoption. Government of India has created various schemes to promote the adoption of electric cargo bikes. For instance, in May 2022, the Delhi government initiated a scheme aimed at providing financial incentives to individuals purchasing electric bikes, including both passenger and cargo e-cycles.

Under this scheme, buyers of e-cycles are expected to benefit from a 25% discount on the purchase price, capped at a maximum of $65.90 (Rs 5,500) per unit. Additionally, the first 1000 electric cycle owners will receive an extra $23.96 (Rs 2,000) incentive. Moreover, purchasers of e-cargo cycles stand to receive a purchase incentive equal to 33% of the vehicle's price, with a maximum cap of $179.72 (Rs 15,000) per vehicle. In addition, establishing transparent and supportive policy frameworks is necessary for creating a conducive environment for the electric vehicle market. Policies that impose stringent emissions standards, mandate zero-emission vehicles in select sectors, and set targets for electric vehicle penetration spur investments and advancements in electric cargo bike technology. The India electric cargo bike market trends indicate a shift towards sustainable urban transportation solutions.

The India electric cargo bike market size has been expanding significantly, driven by increasing interest in EV cargo bikes. In addition, electric cargo bike manufacturers offer various smart applications to enhance the functionality and usability of bikes. The app allows users to track their rides in real-time. They monitor their speed, distance covered, and view maps to navigate their routes effectively. Users access unlimited recording of their rides with personalized and graphical analytics. The app enables users to control various functions of their e-bike directly from their smartphone. They turn the battery on or off, switch between different riding modes, and adjust settings such as pedal assistance levels. For instance, Hero Lectro company offers electric cargo bike called Hero Lectro WINN with an I-Smart app for ride tracking and bike control. Another smart feature such as GPS tracking lets riders and fleet managers see exactly where e-cargo bikes are at any moment. Using satellites, the GPS system constantly updates the bike's location, giving accurate and current information. For instance, VikeBike India Pvt Ltd provide Vike Bike Go Pro M9 electric cargo scooter, which is equipped with advanced remote-control technology and GPS tracking system. The India electric cargo bike market size indicates a promising sector poised for substantial growth, fueled by increasing awareness of environmental sustainability and the need for efficient urban logistics solutions.

Rise In Urbanization and Population Growth

Urbanization and growth of population of India during the past few years have resulted in a higher need for sustainable and effective transportation systems within cities. When urban areas get densely populated, conventional means of transport encounter problems such as traffic congestion, pollution, and limited accessibility. As of March 2023, Indian cities accommodated 35% of the country’ total population; this is projected to rise further up to 53% by 2047. The year 2022 recorded an urban populace of 508,368,361, which indicated a 2.05% rise from that of the previous year. This upward trajectory has created a conducive atmosphere where electric cargo bikes are embraced.

For instance, in June 2021, Hero Lectro – the electric vehicles subsidiary company under Hero Motors Corporation– partnered with Fast Despatch Logistics as well as Turtle Mobility, a logistic firm, to introduce e-cargo bikes for last-mile delivery. Under this pact, Fast Despatch Logistic is expected to rent out Hero Lectro’s E-Cargo Bikes through Turtle Mobility, which intends on enhancing their e-bike fleet number upto15,000 units. These eco-friendly bikes provide a convenient way of moving around congested areas thereby enabling businesses & individuals alike to transport goods much faster while keeping their carbon footprints low. Rise in urbanization and population growth have highlighted the need for innovative and sustainable last-mile delivery solutions, driving the demand for electric cargo bikes in India. This is expected to drive the growth of the India electric cargo bike industry during the forecast period. The India electric cargo bike market forecast suggests a strong growth trajectory in the coming years. With increasing urbanization, environmental awareness, and government support for electric vehicles, the market is poised for significant expansion.

Surge in Sustainability and Environmental Awareness to Reduce Carbon Emission

The market has experienced significant growth due to the rise in focus on sustainability and increased environmental consciousness. This momentum has evolved into a powerful force that propels market expansion. A collective effort from individuals, businesses, and governments is directed toward finding avenues to minimize carbon emissions and embrace greener practices as awareness about climate change and environmental well-being gain momentum. According to a study by STAND.earth, the last-mile courier industry in India contributes approximately 0.5 million tons of CO2 emissions annually. With the increase in popularity of e-commerce solutions among urban consumers as an alternative to traditional purchases, there has been a significant rise in last-mile delivery operations. Smart bikes, such as Yulu DeX, have gained momentum in recent years. The Yulu DeX electric bike helps reduce the operating costs of delivery executives by around 35-40%, resulting in greater savings per order delivery compared to fuel-powered 2-wheelers.

In addition, businesses are astutely acknowledging the value of aligning with eco-conscious strategies. They recognize that incorporating environmentally friendly practices enhances their brand image and resonates deeply with customers who prioritize sustainability. For instance, in September 2023, SUN Mobility, a major provider of energy infrastructure for electric vehicles (EVs), partnered with Swiggy, India’s premier on-demand delivery platform as part of its dedication to revolutionize last-mile delivery and advance eco-friendly transportation in India. Together, they plan to electrify over 15,000 e-bikes in Swiggy’s delivery fleet by 2024.

The initiative is in line with Swiggy's pledge to achieve a daily coverage of 0.8 million km through electric vehicles. In addition, there is a growing emphasis on embracing environment-friendly alternatives with the acceleration of climate change concerns. Electric cargo bikes, offering emission-free transportation solutions, are optimally positioned to meet this demand, which is expected to boost the growth of the market.

Lack of Infrastructure and Challenges Related to Charging

While electric cargo bikes offer a sustainable solution for urban transportation, their adoption is partially dependent on the availability of charging infrastructure. Establishing a comprehensive network of charging stations for these bikes poses challenges, especially in areas with limited infrastructure development. Moreover, the existing charging infrastructure needs to be upgraded to accommodate the growing number of electric cargo bikes. This could potentially hinder market growth, as inadequate charging options might deter businesses and individuals from transitioning to electric cargo bikes.

High Initial Cost

The high initial capital cost stands as a significant restraint to the expansion of the India electric cargo bike market. While electric cargo bikes offer substantial long-term benefits, including operational cost savings and environmental advantages, the initial investment required to procure these vehicles is a deterrent for potential users. Businesses and individuals considering the adoption of electric cargo bikes must allocate a notable upfront sum to purchase the vehicles. This upfront expense acts as a barrier, particularly for smaller businesses or individuals with limited financial resources. The higher initial cost of electric cargo bikes in comparison to traditional bicycles or conventional delivery vehicles might lead to hesitation when making investment decisions.

Favorable Government Initiatives and Regulatory Support

The Indian government has recognized the potential of electric vehicles, including electric cargo bikes, in addressing environmental concerns and promoting sustainable transportation solutions. To encourage the adoption of these eco-friendly vehicles, the government has implemented various favorable initiatives and regulatory measures. These actions have created substantial opportunities for the growth of the electric cargo bike market in India. Favorable government initiatives and regulatory support present a significant opportunity for driving the growth of the India electric cargo bike market. The India electric cargo bike market share is steadily increasing as more businesses and consumers adopt eco-friendly transportation options.

The increase in the India electric cargo bike market share reflects a growing preference for sustainable mobility solutions. As the government increasingly prioritizes sustainable transportation solutions and the reduction of carbon emissions, they are introducing policies and incentives that directly benefit the adoption of electric cargo bikes. Moreover, the government of India made various new policies and investments in electric vehicle projects to promote the adoption of electric cargo bikes. For instance, in June 2023, the government of India initiated a new scheme to encourage the adoption of electric vehicles in the country. Administered by the Ministry of Heavy Industries, the new scheme commenced on April 1, 2024, replacing the FAME scheme that concluded on March 31, 2024.

With a budget of approximately $59.9 million (₹500 crore), the Electric Mobility Promotion Scheme 2024 (EMPS 2024) is projected to run until the end of July 2024. Under this scheme, support of up to $119.84 (₹)10,000) per two-wheeler is expected to be provided for approximately 0.33 million two-wheelers. In addition, regulatory support has played a crucial role in creating opportunities for the electric cargo bike market. Several states and cities have implemented regulations and policies that prioritize the use of electric vehicles for last-mile delivery and urban logistics operations.

Recent Developments in the India electric cargo bike Industry

• In March 2024, Nexzu Mobility Ltd. launched four new variants within its Bazinga and Roadlark range of electric cycles. Both electric cycles are equipped with swappable batteries, which offers consumers a more affordable range of options. The swappable batteries are available in capacities ranging from 5.2 Ah to 14.5 Ah, catering to varying needs and preferences.
• In March 2023, Quantum Energy launched a new variant of Quantum Bziness, for commercial cargo deliveries. It offers a range of up to130 km with a 90,000 km warranty over 3 years & upgraded with a LFP battery & added features including Remote Lock-Unlock, High-Performance Motor, Anti-Theft Alarm, USB Charger, Disk Brakes, LCD Display, load carrying features.
• In July 2023, ScooEV partnered with Quantum Energy to deploy Bziness Pro e-scooters for last-mile delivery to provide the best delivery solutions to the growing delivery and e-commerce space. The electric scooters get an inbuilt IOT tracker with an IP67-rated battery pack, remote lock-unlock, anti-theft alarm.
• In August 2023, Virtus Motors Private Limited launched Alpha A and Alpha I electric cycles. The Alpha A and Alpha I electric cycles boast a fixed battery pack that offers a substantial 8.0 Ah capacity. Furthermore, the duo gets front suspension, disc brakes on both ends, and single-speed design. Furthermore, the cycles get a 250W Hub motor..
• In August 2023, Stryder Cycle Private limited launched Zeeta Max electric bicycle with 36 V 7.5 Ah battery. It offers a range up to 35km with pedal assist in single charge. Its 7.5 Ah battery delivers a total capacity of 270Wh.

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the India electric cargo bike market analysis from 2022 to 2032 to identify the prevailing India electric cargo bike market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the India electric cargo bike market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as market trends, key players, market segments, application areas, and market growth strategies.

  India Electric Cargo Bike Market Report Highlights

Aspects	Details
By Type	Front Loader Longtail
By Application	Personal Use Delivery And Courier Waste And Municipal Services Others
By Range	0 Km To 25 Km 25 Km To 50 Km Above 50 Km
By Power Output	Less Than 250W From 250W To 400W From 401W To 750W Above 751W
Key Market Players	EVeez, Spero, Shride India Pvt. Ltd., Virtus Motors Private Limited, Nexzu Mobility Ltd, UBoard, Stryder Cycle Private Limited, Austhraa, TAV Systems Pty Ltd., Bounce, EXA Mobility India Private Limited, Yulu Bikes Pvt Ltd, Motovolt, eBik, Vikebike India Pvt. Ltd., Green Shuttle Technology Pvt Ltd, Quantum Energy, Aurita Bikes, Evolet India, Hala Mobility, Hero Lectro E-Cycles, Zypp Electric, ScooEV, Chartered Bike, Geekay Bikes, Outdoors9, Godawari Electric Motors Pvt Ltd., Trek Bicycle Corporation, Inkodop Technologies Private Limited (EMotorad), EBikeGo

Author Name(s) : Sneha Jaywant kamble | Lalit Janardhan Katare