Although the majority of batteries in e-rickshaw are lead-acid-based, but the market is shifting towards lithium-ion batteries. In this article, we will learn about the lithium batteries for e-rickshaw in the Indian market.
Types of batteries are used in e-rickshaw
E-rickshaws are powered by electric motors ranging from 6500 to 1400 watts and run on battery power. Because of the significant savings in fuel costs, the e-rickshaw is a cost-effective and environmentally responsible mode of transportation. E-rickshaw batteries come in a variety of shapes and sizes. The batteries were created with prolonged range, simple maintenance, long life, and pollution-free air in mind. They can be sourced from multiple locations.
Lead-Acid Batteries for E Rickshaw –
Lead-acid batteries power the majority of e-rickshaws. They typically have a shorter life expectancy of 360 cycles, a longer charge time of 8-10 hours, and are heavier. Because they are high-maintenance batteries, they have an impact on vehicle performance and longevity if they are not properly maintained.
Lithium-Ion Battery for E Rickshaw–
Lithium-ion batteries are now become new choice by manufacturers. Because of their high energy density, they have a lower weight of roughly 35kg, resulting in increased overall mileage. Their charge time is between 1.5 and 3 hours. These batteries are sturdy, long-lasting, and effective for comfortable rides, with a life duration of 1500 cycles (NMC) and 3000 cycles (LeFePo4). These batteries require little to no maintenance.
Gradually the market is shifting toward lithium-ion batteries because of their better performance.
Types of Lithium Batteries for E-Rickshaw
What is the current status of electric rickshaw batteries in India?
In 2019, the market for e-rickshaw batteries in India was valued at $385.0 million, with 4,290.9 thousand units sold. Furthermore, during the forecast period (2020–2024), the market is expected to grow at a CAGR of 13.2% in terms of value, generating revenue of $722.3 million in 2024.
Delhi dominated the Indian e-rickshaw battery industry till 2018, Uttar Pradesh overtook it in 2019. In 2019, electric rickshaws were seen in large numbers in more than 75 of the state’s tier 2 and tier 3 cities. The rising popularity of e-rikshaw for last-mile travel in key cities such as Lucknow, Varanasi, Kanpur, and Noida boosted the sale of batteries. Furthermore, the rising need for replacement batteries is a crucial driver driving the market’s expansion in the state.
In 2019, Delhi had the largest demand for e-rickshaw batteries at the city level. Delhi has the country’s oldest e-rickshaw market. The presence of the Delhi metro network base is the key cause for the business’s rise. Howrah, Noida, Lucknow, Varanasi, Patna, and Kanpur are some of the other cities with major shares of the Indian e-rickshaw battery market.
Why suddenly the demand for lithium batteries for e-rickshaw have increased?
The increasing majority of the e-rickshaw for logistics, mobility and the batteries used in these vehicles is one of the significant trends in the Indian e-rickshaw battery market. The need for these vehicles is expanding in the country as a result of increased activity in the e-commerce, municipality, logistics, and food and grocery sectors. In 2015, there were hardly any electric rickshaws for logistic purposes on Indian roads; nevertheless, within two years, their share of total e-rickshaws on the highways had climbed to roughly 3%. E-rickshaw for logistics accounts for almost 70% of all-electric rickshaws in Ahmedabad.
The fast adoption of e-rickshaws in various cities is the primary driver of the Indian e-rickshaw battery market’s expansion. The electric rickshaw market in India grew significantly between 2014 and 2019, owing to increased demand for these rickshaws, which have lower running costs than other types of rickshaws, particularly auto-rickshaws.
In addition, the government is providing incentives to encourage the adoption of these environmentally beneficial and cost-effective automobiles across the country. For example, the Indian government provides incentives of INR 50,000 each to five lakh e-rickshaws under its second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) scheme, which went into effect in April 2019.
The recent increase in e-rickshaw sales has resulted in the emergence of long-term potential in the replacement battery market. E-rickshaws are becoming increasingly popular throughout the country, resulting in a lucrative industry for aftermarket companies. Furthermore, the average age of e-rickshaws offered by prominent original equipment manufacturers (OEMs) is around 3.5 years, with each rickshaw going through 3–4 battery replacement cycles, providing growth prospects for the competitors. Furthermore, over four million electric rickshaws are estimated to be on the road by 2024, expanding the battery replacement industry in the Indian electric rickshaw market.