E-Rickshaws to the rescue

Did you know that India boasts more electric rickshaws (e-rickshaws) than the total number of battery-powered passenger cars sold in China from 2011 to 2018?1

Now the fourth-largest automobile market in the world2, the South Asian nation is leading an electric rickshaw revolution that could help reduce congestion and traffic pollution in India — and serve as a model for countries where rickshaws are a landmark feature. According to Rahul Mishra, a principal at consulting firm AT Kearney, as many as 11,000 new e-rickshaws hit the street every month — and sales of these cleaner, quieter and faster vehicles show no signs of slowing down.1

Ola is one of the transport companies in India that are contributing to this vision of cleaner and smoother roads in India. The company is offering some e-rickshaw drivers infrastructure such as rooftop solar panels and charging dockets at home to encourage their switch to electric vehicles3. As the potential for e-rickshaws grows in large economies like India, currently home to 10 of the world’s most polluted cities1, the transport industry’s hope of fuelling a cleaner system could be closer to fulfillment than we think.

As the impact of climate change becomes more pronounced and regulations evolve, companies’ environmental awareness will likely increase, as the associated risks become clearer. At Eastspring Investments, we integrate environmental, social and governance (ESG) considerations in our investment processes. Find out more about www.eastspring.com

Sources:
1  https://www.bloomberg.com/news/features/2018-10-25/india-s-rickshaws-outnumber-china-s-electric-vehicles
2  https://economictimes.indiatimes.com/industry/auto/india-pips-germany-ranks-4th-largest-auto-market-now/articleshow/63438236.cms
3 https://techcrunch.com/2018/04/15/ola-will-add-10000-electric-rickshaws-to-its-india-fleet-over-the-next-year/