How to Start a Rickshaw Business: Costs, Permits & Profits

If you prepare ahead, it's easy to start a rickshaw business in India. Cities, towns, and even villages need transportation that works. Rickshaws meet that requirement every day. They are cheaper, use less fuel, and can carry both people and goods. This is a great choice if you want a little business that makes money on a regular basis.

You need to know three things to get started: the cost, the permits, and the profit. Each one is important to your success.

Why Rickshaws Still Work

Rickshaws are everywhere because they can easily navigate most places. They fit in wonderfully on narrow roadways, busy markets, and last-mile trips. Rickshaws do things every day that bigger vehicles can't. That's why demand keeps going up.

Rickshaws take people to many places and are also used to deliver goods, especially in small towns. As more people order things online, the necessity for small mobile trucks grows.

Picking Electric or CNG Rickshaws

You need to choose the right rickshaw initially. Most new customers choose either an electric auto rickshaw or one that runs on compressed natural gas (CNG). There are good and bad things about both.

Running electric rickshaws costs less. They run on batteries and don't need any gasoline. A single charge lasts for roughly 100 to 120 miles. It's easy to charge at home or at public stations in many places. The cost of a basic electric model is between ₹1.3 and ₹1.8 lakh. Repairs are also cheaper because there are fewer moving parts.

If you travel longer hours or outside cities, CNG may be better. Depending on the brand, the auto rickshaw cng price starts at ₹2.5 lakh and goes up to ₹3.2 lakh. Refueling with CNG takes less time than charging a battery. It also has a longer range and more power. In small towns and Tier-II cities which don’t have charging stations, CNG rickshaws are more convenient in these types of places.

The Law and Permits

You can't bypass getting permits. You can't run your business without them. First, you need to register your rickshaw as a business vehicle. This happens at the local RTO. You also need a commercial driver's license.

Next, you need a permit to drive. There are numerous types of permits for passengers and cargo. Pick the one that works best for your service. You need a pollution certificate for CNG models. The requirements are less strict for electric ones. Many states let you register your electric rickshaw faster and charge less.

Also, buy insurance. You have to have basic third-party coverage. If you own more than one rickshaw, full coverage is best.

Which Brands Are Good

Getting the appropriate brand now will save you money later. A name you can trust means greater service and quality. For example, look at the Mahindra auto rickshaw models. They are well-built, ride smoothly, and hold their value well. One of the better electric alternatives is the Mahindra Treo series. It charges quickly, lasts a long time, and needs little care.

Atul e rickshaw is another name you can trust. These rickshaws are strong and cheap. A lot of people in India like Atul Elite and Smart. These models are good for both people who are buying their first rickshaw and people who own a small fleet. It's easy to find spare parts for them, and there are many service centers. Pick a manufacturer that offers a guarantee, service in your area, and simple financing.

Price and Profit

The sort of vehicle you have and the rules in your area will affect how much it costs to set up. This is an estimate:

Item	Price (₹)
Electric Rickshaw	1,30,000–1,80,000
CNG Rickshaw	2,50,000–3,20,000
Registration and Permits	5,000 to 10,000
Yearly Insurance	5,000 to 7,000
Branding and Accessories	5,000 to 8,000

You can make between ₹700 and ₹1,500 a day. It depends on how long you work, where you drive, and what kind of service you give. After paying for gas or charging and doing modest maintenance, each vehicle can make between ₹15,000 and ₹25,000 a month.

Profits go up when you add more rickshaws and drivers to your firm. Many owners make more than ₹1 lakh a month with fleets of 5 to 10 rickshaws.

Last Thoughts

The business of rickshaws is still growing. It is a good pick because it has a low entry cost, is easy to run, and demand is going up. You can choose a Mahindra rickshaw or an Atul rickshaw, or evaluate options depending on the auto rickshaw CNG pricing. No matter what you choose, your success will depend on how well you plan.

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