Demand for e-rickshaws goes up

Ajay Joshi

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Tribune News Service

Jalandhar, July 30

After the cut in tax by the Central government on electric vehicles (EVs) to 5 per cent from the earlier 12 per cent, the demand for ‘e-rickshaws’ has risen in the city.

Distributors in the city claimed to have been receiving advance bookings on the eco-friendly vehicles. They said the demand would further rise in the coming days.

At present, around 100 e-rickshaws operate in the city. Due to popularity of electric vehicles, rickshaw-pullers are also turning up towards such vehicles. Besides, migrants struggling to find a decent job are also showing interest in purchasing these colourful and designer vehicles, which are also economical.

Though a major chunk of these electric vehicles were usually seen at the railway station, these are also seen at bus stand and interior locations such as markets and colleges.

Balwinder Singh, owner of BM Enterprises and distributor of public-friendly three-wheelers, said: “This is for the first time that I have received pre-booking amount for e-rickshaws. Ever since the relaxation of seven per cent Goods and Service Tax (GST) was announced by the government, I have received five advance bookings. Some have also approached me for purchasing the electric vehicles next month.”

Balwinder has been selling the vehicles for the past two years. Before the tax cut was announced, he would sell five to six vehicles per month. He said he estimated that the sale would go up this year. He added that at present, the cost of one e-rickshaw stood at around Rs1,20,000 to Rs1,35,000. After the reduction of GST rate, it would cost around Rs1,13,000.

He said the cost would decrease further if the taxes imposed on its battery are slashed, as the consumers have to shell out from Rs30,000 to Rs35,000 after every six months on them.

The additional cost of battery replacement is the only thing that bothers the operators of e-rickshaws. Also, as the GST rate on the charger/ charging stations for electric vehicles has been reduced from 18 per cent to 5 per cent.

Balwinder Singh, owner of speedways electrical, said the local authorities should install charging points at common parking points, so that operators could also benefit from the reduced charging cost.