Executive summary

The availability of public transport is limited in many regions, specifically in rural areas, leading to increased use of private motorised vehicles for commuting. As economic conditions improve, the aspiration towards owning private modes increases, leading to increased fuel consumption and emissions. Hence, it becomes imminent to delink economic growth from emissions through clean alternatives.

Between March and June 2023, the Convergence Energy Services Limited (CESL) team conducted field visits in Raipur and its adjoining districts in Chhattisgarh, Lucknow in Uttar Pradesh, Nalanda in Bihar, and Trivandrum in Kerala. These visits aimed to assess the potential adoption of technologies such as electric bicycles among people who travel short distances (5-10 km). The team studied current trip durations, the frequency of on-demand trips, and transport-related expenditures to identify the target beneficiaries who could benefit from more convenient commute modes. Initial field visits indicated e-cycles as a viable commute mode to address their aspiration of owning a private vehicle while ensuring zero emissions.

The initial discussions hinted at women government employees, especially Anganwadi, Accredited Social Health Activists and women associated with Self-Help Groups (SHGs) as the potential users of e-cycle for their work travel. Subsequently, CESL and Council on Energy, Environment and Water (CEEW) collaborated with the Energy Management Centre (EMC) of Kerala to conduct an extensive survey and demonstration to assess the viability of electric cycles (e-cycles) as a prospective alternative to the existing commute patterns of the identified beneficiaries at Manikkal Gram Panchayat, known for being one of Kerala’s net-zero Panchayats.

Three different models of e-cycles were made available at the Panchayat office in the month of July 2023. The demonstration of e-cycles conducted at Manikkal Gram Panchayat received enthusiastic response and the identified target groups took the opportunity to take a test ride and provide detailed feedback on their experience. The majority of the beneficiaries (70–75 per cent) believed that e-cycles would reduce fatigue and improve work efficiency, resulting in higher wages. Key findings from the survey and demonstration include:

• The target beneficiaries travel an average of 5–15 kilometres (km) per day, with ASHA workers traversing the farthest distance (around 17 km).
• Monthly incomes of the target beneficiaries vary from INR 6000 to 12,000, with Anganwadi teachers earning the highest (INR 12,000).
• Among the identified beneficiaries, ASHA workers and Haritha Karma Sena members are most interested in owning e-cycles. This interest is despite some having limited experience riding traditional bicycles.

A detailed Total Cost of Ownership (TCO) was calculated to estimate the economic viability between Internal Combustion Engine (ICE) two-wheelers, electric twowheelers, e-cycles and low speed e-mopeds. It was observed that the e-cycles and low speed e-mopeds are around 56-70 per cent cheaper than their ICE and EV counterparts. Despite having minimal operating costs, the upfront cost of the e-cycles and low-speed e-mopeds (INR 25,000 – INR 50,000) remain a significant barrier for the target groups, hindering their adoption.

Figure 1 TCO comparison of different technologies

Source: Authors’ analysis

Considering their aspirations, repayment capacity, and specific requirements, the following e-cycle models are suggested for deployment:

• A cargo e-cycle is most suitable for Haritha Karma Sena workers and the Kudumbashree members. This would result in a potential cumulative demand of around 35,560 e-cycles across Kerala.
• A low speed e-moped is most suitable for Anganwadi workers and ASHA workers. This would result in a potential cumulative demand of 41,000 e-mopeds across Kerala.

Given the presence of the target beneficiaries across different government Institutions pan-India and the similarity in their monthly incomes and operational characteristics, there is a considerable potential demand of around 9.4 lakh e-cycles among ASHA workers, 7.4 lakh e-cycles among Anganwadi workers and 5-6 crore e-cycles among SHG members.

The following recommendations can be implemented to scale up the adoption of e-cycles pan-India:

• Fiscal incentives and aggregation can increase viability: Targeted incentives from the national and sub-national governments can be deployed in two phases to ensure wide-scale adoption of the e-cycles:
  • Ecosystem enabler: Dedicated fiscal incentives from the Government will be instrumental in reducing the high upfront cost of e-cycles and low speed e-mopeds. Fiscal incentives followed by awareness campaigns and educational programmes will inform the public about the benefits of these technologies such as reduced emissions, cost savings on fuel, minimal maintenance, and their contribution to a cleaner environment. This increased visibility creates a ripple effect, encouraging more individuals to consider and adopt these economic and clean alternatives for their existing travel modes.
  • Large scale adoption: Interest-free loans offer crucial financial flexibility, allowing consumers to invest in e-cycles or low speed e-mopeds. Government-backed interest-free loans lower barriers to entry, encouraging widespread adoption. These fiscal incentives, by bolstering consumer benefits, simultaneously catalyse an upsurge in demand for such technologies. This escalating demand acts as a catalyst for innovations, driving technological advancements and fostering economies of scale in production. As a result of increased adoption due to incentives, the expanding market for e-cycles and low speed e-mopeds will solidify their viability and establish them as a sustainable transportation option for the future.
• Design improvements in the existing e-cycles in accordance with the user requirements to cater their needs (see figure 2), while keeping costs in check.
• Systemic data collection accelerates the adoption of e-cycles and lowspeed e-mopeds by offering critical insights into their usage and impact on users’ livelihoods. On-ground e-cycle demonstrations gather real-time operational data covering travel patterns, usage frequency, routes, and user input. Analysing this data informs decisions on infrastructure, incentives, and policies, optimising their incorporation into existing systems. This data-driven approach substantiates their potential positive impact, enabling more effective initiatives to support their widespread adoption.
• Strengthening institutional structure ensures streamlined and transparent processes for disbursing funds, particularly interest-free loans. This enhanced structure guarantees efficient allocation of financial incentives while bolstering accountability and oversight. With improved channels, more women within SHGs gain access to financial support for e-cycle adoption, extending the benefits of sustainable transportation to a wider, more inclusive demographic. Empowering these women will not only enhance mobility but also promote economic independence and empowerment within their communities.

Figure 2 Additional features requested by the beneficiaries, post e-cycle demonstration

Source: Authors’ analysis

E-cycles emerge as an ideal solution for addressing individual mobility challenges while meeting social aspirations in rural and semi-urban areas. It also promotes energy efficiency and zero emissions targets, contributing to India’s Net-Zero 2070 target. Moreover, e-micromobility technologies provide time-saving advantages, address mobility challenges, augment livelihood prospects, and promote an inclusive transition with women attaining greater self-sufficiency.