India is one of the world’s largest markets for electric rickshaws (also known as e-rickshaws or battery rickshaws), thanks to the country’s push for greener urban mobility. However, for international manufacturers and importers looking to bring electric rickshaws into India, understanding the import tax structure is essential. In this blog, we’ll break down the current import duties, GST rates, and incentives, while highlighting how quality-focused brands like QSD navigate the Indian market with competitive pricing and compliance.

Import Duty on Electric Rickshaws in India

Electric rickshaws fall under the Harmonized System (HS) Code 8703 or 8704, depending on whether they’re passenger or cargo vehicles. When imported into India, they are subject to several tax layers:

1. Basic Customs Duty (BCD)

The Basic Customs Duty for electric vehicles typically ranges between 10% and 25%, depending on classification and component status.

• For completely built units (CBUs): duty is around 25%

• For semi-knocked-down (SKD) kits: around 15%

• For completely knocked-down (CKD) kits: approx. 10%

Importers often prefer SKD or CKD formats to reduce the BCD burden and qualify for local assembly schemes.

2. Integrated Goods and Services Tax (IGST)

Once the BCD is applied, the Integrated GST (IGST) is calculated on the total value of the product, including duties. For electric rickshaws, IGST is currently 5%, which is relatively low compared to conventional fossil-fueled vehicles.

3. Other Cesses or Surcharges

While the Indian government has waived Social Welfare Surcharge (SWS) on many electric vehicle components, a 10% surcharge may still apply on certain import categories, especially CBUs.

Local Incentives for Electric Rickshaw Adoption

To reduce pollution and promote clean mobility, the Indian government supports e-rickshaw adoption through schemes such as:

• FAME India Scheme (Faster Adoption and Manufacturing of Electric Vehicles): Offers subsidies of ₹20,000–₹30,000 per e-rickshaw depending on battery size and vehicle specs.

• GST benefits: Electric vehicles attract only 5% GST (down from 12% in earlier years).

• State incentives: Some states like Delhi, Uttar Pradesh, and Assam provide registration fee waivers, road tax exemptions, and additional state subsidies.

These policies encourage local sourcing or local assembly of imported units to take advantage of tax relief and subsidies.

Import vs. Local Manufacturing: What Makes Sense?

While import taxes on electric rickshaws can be significant, brands that offer CKD kits or locally assembled vehicles can reduce tax liability substantially. This is why global companies choose local partnerships or assembly hubs in India.

How QSD Optimizes for the Indian Market

QSD (Xianghe Qiangsheng Electric Tricycle Factory), a leading Chinese manufacturer of e-rickshaws, has taken a smart, strategic approach to exporting to India and similar markets. With over 15 years of experience, QSD offers:

• CKD/SKD options that reduce total tax liability for Indian partners.

• Customized vehicle configurations to comply with Indian homologation requirements and FAME subsidy guidelines.

• Durable and cost-effective models for both passenger and cargo use, with a strong focus on battery safety, motor efficiency, and longer lifecycle.

QSD’s electric rickshaws are already widely used across Asia and Africa, and the company’s growing reputation for reliable engineering and competitive pricing makes it a trusted name among Indian distributors and fleet operators.

Final Thoughts

So, what is the import tax on electric rickshaws in India? The answer depends on how you bring the product in—CBU imports can face a total tax burden of up to 40%, while CKD kits can bring that down to 15–20%. Add the 5% GST, and you have a clear picture. However, thanks to FAME and state-level incentives, there are many ways to reduce costs—especially if you work with an experienced, adaptable supplier like QSD.

If you’re a dealer, distributor, or fleet buyer considering electric rickshaw imports into India, QSD is ready to support your business with tax-optimized delivery models, excellent after-sales service, and proven product durability.