India EV Battery Swapping Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India EV Battery Swapping Market Trends & Drivers

Reduced Timing for EV Charging Is a Key Driver

• The charging time is an important factor for the uptake of EVs, especially in long-hauling applications. Most of the EVs in the country employ a slow charge system to recharge the battery overnight, usually up to eight hours.
• Alternating current (AC) chargers take quite a longer time to charge an EV than refueling an internal combustion engine (ICE) vehicle.
• Electric two-wheelers, three-wheelers, and four-wheelers in India have on-board chargers that charge at the rate of 2.5–3 kW per hour. These 2.5 kW or 3 kW AC chargers charge a two-wheeler (for a battery with an energy density of 2 kWh) in no less than an hour.
• Also, these chargers charge a four-wheeler or larger vehicles with batteries of 12 kWh or more in no less than five to six hours.
• At present, the available fast charging technology can help reduce the charging time. But these fast chargers are very limited in number and they also require an average of 30 minutes to charge nearly 80% battery of a four-wheeler using a 50-kW rapid charger. For instance, a 43–50 kW rapid charger takes around one hour to fully charge the Nissan Leaf.

Growing Demand for Li-ion Battery-Based Electric Rickshaws Is an Opportunity

• The majority of the electric rickshaws in India continue to run on sealed lead acid (SLA) batteries. This is because the initial cost of SLA batteries is much lower than that of Li-ion batteries.
• However, key manufacturers have now been focusing on Li-ion batteries as a power source for electric rickshaws, because SLA batteries, if not properly disposed of, can pose a serious threat to human health and the environment at large.
• In contrast, Li-ion batteries offer relatively high energy density, energy-to-weight ratio, and power-to-weight ratio.
• These batteries are lighter and smaller and are more reliable and durable. These decrease the overall weight of the vehicle and advance the performance of the vehicle.
• Therefore, original equipment manufacturers (OEMs) are increasingly focusing on the use of Li-ion batteries, as an alternative to SLA batteries, which is resulting in the increased demand for Li-ion-based electric rickshaws in the market.
• This, in turn, is creating ample opportunities for the growth of market players as the battery swapping operators are primarily focusing on offering Li-ion battery swapping stations.

Degradation in battery performance is a challenging factor

• A key factor resulting in the problematic growth of the Indian EV battery swapping market is the degradation in battery performance. Consistent swapping of batteries causes deprivation in battery performance over the period.
• The life cycle of a two-wheeler Li-ion battery is 3,000 times, that is, a charge from 0% to 100%. Furthermore, after these 3,000 cycles, the efficiency of these batteries degrades by 40%.
• Similarly, a lead acid battery used in a two-wheeler has a life cycle of 1,000 times and does not get charged after consistent usage for six to eight months. Rapid battery swapping and usage of the battery in several vehicles also degrades the quality of these batteries in a short time.
• This results in differences in performance in batteries obtained from swapping stations. A user then cannot predict the range the swapped battery will offer.
• In addition, swapping will cause hardware degradation sooner than charging an EV. This adds to the maintenance cost of an EV. Such factors are considered to be the hurdles to the growth of the market for EV battery swapping in India.

India EV Battery Swapping Industry Outlook

Vehicle Type Insights

• The three-wheeler category accounted for the majority of revenue share, around 55%, in 2023. The battery swapping technique extends the battery life of electric three-wheelers. Because these vehicles travel more than 100 km per day on average, necessitating regular battery charging.
• The changing batteries result in less downtime than traditional charging methods, which increased the acceptance of this technology among e-rickshaw battery operators in India.
• Furthermore, a rising number of initiatives undertaken by various firms to incorporate battery-swapping technologies in electric vehicles are driving the market growth in this category.
• The two-wheeler category is predicted to grow at a CAGR of around 25.3% during the forecast period. This growth can be primarily attributed to favorable government assistance in the form of subsidies and incentives, strict emission standards, and increased environmental consciousness across the country.
• Furthermore, the new-generation two-wheelers being introduced in the Indian electric two-wheeler market, demonstrate high speed and have long-range capabilities on a single charge, comparable to gasoline-powered two-wheelers.

Vehicle types covered in the report include:

• Two-Wheeler
• Three-Wheeler (Largest Category)
• Commercial Vehicle (Fastest-Growing Category)

Service Type Insights

• The subscription model category is expected to grow at a higher growth rate over the forecast period. Electric buses often have set routes and stoppage, as a result, drivers know how many miles they traverse on a daily basis and prefer the subscription model.
• Furthermore, automobiles utilized for sharing require quick charging throughout their working hours, which necessitates numerous battery swaps. Therefore, drivers are more likely to choose the subscription model because they will not have to pay each time to swap a battery.
• On the other hand, the pay-per-use model holds a larger share of the market.
• Electric rickshaws have a range of 50–70 km per charge, thus drivers must change batteries on a regular basis. As a result, the majority of electric rickshaw drivers choose the pay-per-use model because they just need to pay based on their consumption.

The following services are included in the report:

• Pay-Per-Use Model (Larger Category)
• Subscription Model (Faster-Growing Category)

Uttar Pradesh Is the Largest Revenue Generator

• Uttar Pradesh accounts for the largest revenue share in the market. This is because this state is the largest market for electric two- and three-wheelers in India. The use of these vehicles is rising across the state, particularly in tier-2 and tier-3 cities.
• Furthermore, because of the state's strong development potential, major OEMs are concentrating on increasing their market share by developing dealer networks in the state.
• However, the market in Karnataka is expected to expand at a rapid pace in the next few years. This is mostly due to the state government’s plans to deploy a considerable number of electric vehicles in a shared fleet.
• Furthermore, Delhi holds a significant revenue share in the market, due to the adoption of leading electric vehicles in the state.
• For instance, electric rickshaw sales have increased since 2013 due to the overall effect of a large population, high vehicle usage, and high volume of travel.
• Also, Delhi is among the worst states in terms of overall heat-trapping pollution and hazardous emissions, which is expected to fuel the demand for electric vehicles in the state.
• The Government of Delhi has moved its emphasis to electric vehicles in response to the rising levels of air pollution in the nation's capital.
• For instance, it has announced a subsidy of USD 426 (INR 30,000) on the purchase of electric rickshaws. As a result, their demand has multiplied in the city, which is good for the market growth in the future.

Further, states analyzed for this report include:

• Madhya Pradesh
• Uttar Pradesh (Largest State Market)
• Delhi
• West Bengal
• Rajasthan
• Bihar
• Haryana
• Chhattisgarh
• Uttarakhand
• Punjab
• Jharkhand
• Assam
• Tripura
• Karnataka (Fastest-Growing State Market)
• Rest of India

India EV Battery Swapping Market Share

The India EV battery swapping market is fragmented in nature with the presence of a many key players. Moreover, companies are focusing on strategic measures, such as acquisitions & mergers, geographical expansion, and product launches, to increase their market share. Further, companies are also paying attention to the improvement in their current product portfolios and entering into collaborations with other market players.