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The Indian electric rickshaw battery market was valued at $385.0 million, with 4,290.9 thousand units being sold, in 2019. Further, the market is projected to advance with a CAGR of 13.2%, in terms of value, during the forecast period (2020–2024), to generate revenue of $722.3 million in 2024.
Although Delhi dominated the Indian electric rickshaw battery market till 2018, Uttar Pradesh became the largest state in 2019. Electric rickshaws were present in a significant number in more than 75 tier 2 and tier 3 cities of the state, in 2019. The growing usage of such vehicles, primarily driven by their increasing popularity for last-mile commuting, in major cities, including Lucknow, Varanasi, Kanpur, and Noida, is, in turn, propelling the sale of batteries. Moreover, the increasing demand for these batteries for replacement is another major factor driving the growth of the market in the state.
At the city level, the highest demand for electric rickshaw batteries was observed in Delhi, in 2019. The city is the oldest market for electric rickshaws in the country, with the presence of a large metro commuter base being the primary reason for the growth of the market in the metropolis. Some of the other cities occupying significant shares in the Indian electric rickshaw battery market are Howrah, Noida, Lucknow, Varanasi, Patna, and Kanpur.
Dynamics of India Electric Rickshaw Battery Market
One of the major trends being witnessed in the Indian electric rickshaw battery market is the increasing penetration of electric loader rickshaws and batteries used in these vehicles. Owing to the increasing activities in the e-commerce, municipality, logistics, and food and grocery sectors, the demand for these vehicles is increasing in the country. In 2015, there were nearly no electric loader rickshaws on Indian roads, but within two years, the share of these vehicles in the total electric rickshaws on the roads increased to around 3%. In Ahmedabad, out of all electric rickshaws, around 70% are loader rickshaws.
The rapid penetration of electric rickshaws in different cities is the main driver for the growth of the Indian electric rickshaw battery market. The electric rickshaw market in India boomed substantially during 2014–2019, attributed to the high demand for these rickshaws, owing to their lower operating cost than other variants, specifically auto-rickshaws. In addition to this, the government is also offering support, in the form of incentives, with the aim to boost the adoption of these eco-friendly and economical vehicles across the country. For instance, under its second phase of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) scheme, which came into effect on April 2019, the Indian government provides incentives of $735 (INR 50,000) each to five lakh electric rickshaws having an ex-factory price of up to $7,351 (INR 5 lakh).
The recent growth in electric rickshaw sales has led to the creation of long-term opportunities, with respect to the sale of replacement batteries. The penetration of electric rickshaws in the country continues to grow significantly, thus becoming a lucrative business for aftermarket firms. Moreover, the average age of electric rickshaws offered by the leading original equipment manufacturer (OEMs) is around 3.5 years, with each rickshaw going through 3–4 battery replacement cycles, which will continue offering growth opportunities to the players. Furthermore, by 2024, more than four million electric rickshaws are expected to be on the road, thereby widening the scope for battery replacement in the Indian electric rickshaw battery market.
India Electric Rickshaw Battery Market Segmentation Analysis
The Indian electric rickshaw battery market is expected to witness faster growth in the load carrier category, during the forecast period, when segmented in terms of vehicle. The growth of the category is expected to be supported by the lower total cost of ownership (TCO) of load carriers over passenger carriers.
Batteries with a capacity less than 101 Ah held the larger share, in the Indian electric rickshaw battery market, during the historical period (2014–2019). The category is expected to continue dominating the market in the coming years, owing to the high end-user preference for low cost.
The demand for electric rickshaw batteries is projected to grow at the faster rate for replacement purposes, based on end use, during the forecast period. An electric rickshaw undergoes three to four battery replacement cycles during the entire lifetime of its operation. With the proliferation of electric rickshaws in the country, a greater number of these vehicles are expected to undergo battery replacement, thereby benefiting its market during the forecast period.
State-Wise Scenario of India Electric Rickshaw Battery Market
Geographically, Delhi was the largest market for electric rickshaw batteries in India till 2018. However, in 2019, Uttar Pradesh overtook the country’s capital to become the largest Indian electric rickshaw battery market. This is attributed to the increasing usage of such vehicles by commuters in the small towns of the state, due to the lower cost of travel involved as compared to other modes of transportation. Furthermore, Delhi still remained a lucrative market for electric rickshaw battery suppliers, standing at the second spot among all states, in 2019.
Competitive Landscape of the India Electric Rickshaw Battery Market
The Indian electric rickshaw battery market is fragmented in nature and characterized by a large number of small and unorganized local players, which accounted for around 80.0% share in the replacement category and over 50.0% share in the OEM, category in the total sales in 2019.
Some of the major players operating in the Indian electric rickshaw battery market are Exide Industries Ltd., Amara Raja Batteries Ltd., Eastman Auto & Power Ltd., Okaya Power Pvt. Ltd., Sparco Batteries Pvt. Ltd., Grand Batteries Pvt. Ltd., and Gem Batteries Pvt. Ltd.
India Electric Rickshaw Battery Market Size Breakdown by Segment
The India electric rickshaw battery market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2024.
Based on Vehicle
Based on Battery Capacity
Based on End Use