India Electric Cargo Bike Market Expected to Reach $760.9 Million by 2032—Allied Market Research

According to a recent report published by Allied Market Research, titled, “India Electric Cargo Bike Market by Vehicle Type, Type, Application, Range, and Power Output: Regional Opportunity Analysis and Industry Forecast, 2023-2032,” the India electric cargo bike market size was valued at $148.3 million in 2022, and is projected to reach $760.9 million by 2032, registering a CAGR of 18.4% from 2023 to 2032.

The India electric cargo bike market size is expanding rapidly, driven by factors such as urbanization, and sustainability initiatives. 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 vehicles, 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 forecast anticipates steady growth driven by factors such as rising urbanization, environmental consciousness, and technological advancements.

Collaborations among EV manufacturers, logistics firms, and e-commerce platforms have hastened the adoption of electric cargo bikes in India, which drives the growth of the India electric cargo bike industry. 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. The India electric cargo bike market share highlights a significant portion of the country's urban transportation sector, showcasing a notable preference for sustainable mobility solutions and last-mile delivery services.

The e-commerce industry in India has experienced remarkable growth in recent years, which can be attributed to several factors such as the increasing penetration of the internet, shifting customer preferences and convenience associated with online shopping. This has necessitated efficient and cost-effective last mile delivery services. This surge in e-commerce activities has led to a significant increase in the demand for efficient and cost-effective last-mile delivery services. In addition to traffic jams and parking problems, traditional methods of delivery using diesel- or petrol-powered vehicles face high operational costs.

Electric cargo bikes have emerged as a viable alternative, offering a solution that addresses these challenges while providing an environmentally friendly mode of transportation. For instance, in November 2021, Adani Electricity Mumbai Ltd. (AEML) and Chartered Bikes partnered to introduce electric bikes for last-mile delivery solutions in a Mumbai suburb under a 'mini-green revolution. A fleet of 50 e-bikes from Chartered Bikes, powered by AEML was deployed in the Powai area. This initiative aims to reduce greenhouse gas emissions in the locality near Powai Lake.

The green power supply provided by AEML enables delivery partners to save approximately between $1.80-2.40 (Rs 150-200) daily with an all-electric fleet of two-wheelers. These electrically powered pedal-assisted bicycles are able to quickly cut through heavy city traffic, saving time by avoiding long queues caused by gridlocks at major intersections, thus making them more reliable than other means when it comes down-to last mile deliveries especially those needed urgently. They have no emissions such as cars or motorcycles do but still possess their agility making them perfect tools for businesses wanting efficient service provision during peak hours when there is lot of happening concurrently such as rush periods.

The rise of e-commerce and the surge in emphasis on efficient last-mile delivery have acted as a strong driver for the adoption of electric cargo bikes in India. The adaptability of parking electric cargo bikes is a significant advantage. Furthermore, e-cargo bikes are suitable for time-sensitive and last-mile deliveries, as their compact size allows them to maneuver through congested areas more efficiently, thereby enhancing their reliability. Therefore, these advantages are expected to accelerate the growth of the electric cargo bike industry during the forecast period. The India electric cargo bike market share is experiencing a notable uptick as more businesses and consumers embrace eco-friendly transportation alternatives.

However, e-cargo bikes, similar to other electric vehicles, depend on charging stations to recharge their batteries. However, regions with insufficient charging infrastructure, such as rural areas or underdeveloped urban regions, pose challenges for businesses aiming to utilize electric cargo bikes efficiently. While urban centers have a more developed charging infrastructure, rural areas frequently lack such amenities. Therefore, there exists a discrepancy in the adoption rates of electric cargo bikes, favoring businesses in urban locales with superior access to charging infrastructure compared to their rural counterparts. The Confederation of Indian Industry (CII) report on 'Changing Infrastructure for Electric Vehicles' highlights the need for infrastructure development to support the surge in demand for electric vehicles (EVs) in India. According to the report, India is projected to require a minimum of 1.32 million charging stations by the end of 2030 to accommodate the rapid adoption of EVs. The India electric cargo bike market analysis highlights a growing sector driven by various factors. Key among these are the pressing need for sustainable urban logistics solutions and the increasing emphasis on reducing carbon emissions

India has experienced rapid urbanization, with large number of people migrating to cities in search of better opportunities. This urbanization trend drives the demand for efficient last-mile delivery solutions as urban population relies on e-commerce and home delivery services. Electric cargo bikes offer a sustainable and cost-effective solution for last-mile delivery in congested urban areas, where traditional delivery vehicles face challenges such as traffic congestion and limited parking. Last-mile delivery is often the most expensive and logistically challenging segment of the supply chain. Electric cargo bikes navigate congested streets and narrow alleys more easily than larger delivery vehicles, making them ideal for efficiently delivering goods directly to customers' doorsteps. The growth of the India electric cargo bike market is remarkable, attributed to several key factors such as rising need for eco-friendly transportation solutions in densely populated urban areas and the increasing awareness of environmental sustainability.

Electric cargo bike manufacturers devise strategies to explore new customer segments and expand their market reach beyond India. For instance, in January 2024, HMC HIVE, a division of Hero Motors Company, and Belgian Cycle Factory announced to export e-bikes for the European markets. This collaboration aims to produce and export advanced Made-in-India cycles and e-bikes, with a business opportunity worth $36 million. The partnership will leverage synergies and innovations to expand their product range, offering bicycles with advanced designs and tech-enabled features for personal and cargo mobility.

The India electric cargo bike market presents a significant opportunity for various stakeholders. With increasing urbanization and congestion, there's a growing need for sustainable last-mile delivery solutions. Companies in the Indian electric cargo bike market are securing international contracts to provide e-cargo bikes. For instance, in September 2021, Nexzu Mobility received export orders for electric bikes from Australia, GCC (Gulf Cooperation Council) countries, and Europe. The company launched its Cargo version of the Roadlark e-bicycle in 2021, specially designed for meeting the bulk last-mile delivery needs of ecommerce businesses in India and across the globe. The export orders suggest a growing demand for e-mobility solutions in regions beyond India. Therefore, such expansion of the market reach beyond India to international destinations is expected to propel the growth of the India electric cargo bike market. Various manufacturers plan to expand into new cities to tap into emerging markets and reach potential customers who do not have access to electric vehicles (EVs) in their area. India electric cargo bike market trends highlight sustainability initiatives and advancements in technology that are shaping the EV cargo bike market.

Companies implement strategies to increase the adoption rates of electric cargo bikes and expand the electric vehicle market. Nexzu Mobility, an electric vehicle manufacturer, intends to broaden its reach by entering eight new cities in India. These cities include Trichy, Guntur, Keshkal, Ranchi, Gulbarga, Pune, Erode, and Tirunelveli, covering various regions of the country. The company aims to strengthen its dealer and distribution network in these cities to facilitate the availability and accessibility of its electric twowheelers and e-cycles to a wider customer base. Nexzu Mobility emphasizes its mission to promote the adoption of EVs throughout India. The expansion into both metro and Tier-1/Tier-2 cities reflects the surge in demand for electric vehicles beyond urban centers. Therefore, the India electric cargo bike market forecast indicates promising growth prospects for the players in the market.

Key Findings of The Study

• On the basis of vehicle type, the electric bicycle segment is anticipated to exhibit a remarkable growth during the forecast period.
• On the basis of type, the front loader segment is anticipated to exhibit a remarkable growth during the forecast period.
• On the basis of application, the delivery and courier segment is anticipated to exhibit a remarkable growth during the forecast period.
• On the basis of range, the 0 to 25 km segment is anticipated to exhibit a remarkable growth during the forecast period.

• On the basis of power output, the 250 W to 400 W segment is anticipated to exhibit a remarkable growth during the forecast period.

The key players analyzed in this report are 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. The companies have adopted strategies such as product development, partnership, product launch, and others to improve their market positioning.