🚖 How to Start an Auto Rickshaw Business in India – 2025 Guide
Looking for a small business with steady daily income? Starting an auto rickshaw business can be a smart choice, especially in urban and semi-urban areas. Here's everything you need to know.
📌 1. Overview of the Auto Rickshaw Business
The auto rickshaw business involves either driving the rickshaw yourself or renting it out. It's ideal for individuals seeking daily income and low maintenance operations.
- Ideal for: Drivers or owners who rent vehicles
- Market demand: High in cities, near stations, schools, and markets
💸 2. Investment Required
🚗 Cost of Auto Rickshaw (2025):
- Petrol/Diesel: ₹2.5–3.5 lakh
- CNG: ₹2.8–3.8 lakh
- Electric: ₹1.5–2.5 lakh (after subsidies)
🛠️ Additional Costs:
- Insurance: ₹7,000–₹10,000 yearly
- Registration & Permit: ₹5,000–₹10,000
- EMI (if financed): ₹5,000–₹8,000/month
📝 3. Registration & Licenses
- Commercial Driving License (LMV-TR)
- Vehicle Registration (RTO)
- Permit for Passenger Transport
- Auto Insurance (Third-party mandatory)
- Pollution Under Control (PUC) Certificate
Tip: Visit your local RTO office or website for state-specific procedures.
🔧 4. Equipment & Maintenance
- Monthly Maintenance: ₹500–₹1,500
- Tyre Replacement: ₹5,000–₹7,000 (every 1–2 years)
- Battery Replacement (EVs): ₹10,000–₹20,000 (after 3–5 years)
📈 5. Daily Earnings Potential
- Average Fare Income: ₹700–₹1,500/day
- Net Income After Expenses: ₹500–₹1,000/day
- Monthly Net Profit: ₹15,000–₹30,000
🏦 6. Government Schemes & Loans
- Mudra Loan: Up to ₹50,000 under the Shishu category
- EV Subsidies: ₹30,000–₹60,000 off on electric rickshaws
- State Subsidies: Delhi, Maharashtra, UP have extra benefits
🔗 Apply for Mudra Loan
🔗 FAME India Scheme – EV Subsidy
📘 7. Quick Summary
| Expense | Estimated Cost |
|---|---|
| Auto Rickshaw | ₹1.5 – ₹3.5 lakh |
| Registration & Permit | ₹10,000 approx |
| Insurance | ₹8,000/year |
| Monthly Earning | ₹15,000 – ₹30,000 |
📞 Need Help Starting?
Want help with RTO registration, selecting a vehicle, or getting a loan? Contact Us or Download Free Business Checklist PDF.
🧠 Expert Tip
“Choose electric if fuel costs are a concern. Daily savings on fuel can go up to ₹300 compared to petrol models.”
