The Indian electric rickshaw battery market will generate revenue of $295.4 million in 2030, progressing with a CAGR of 8.5% during 2021–2030. The lithium-ion category is the higher revenue generator in the market, based on battery type, accounting for $73.3 million in 2021. This is because lithium-ion batteries are long-lasting, quick-charging, energy-efficient, and 50–60% lighter. Due to such reasons, rickshaw manufacturers and owners continue to shift away from SLA batteries to Li-ion variants.
The e-three-wheeler market in India is dominated by unorganized players, primarily small, local manufacturers offering low-priced vehicles. The rickshaws offered by these manufacturers have batteries with a low energy storage capacity. Thus, during the historical period (2017–2021), batteries with a capacity less than 101 Ah accounted for the larger share in the Indian electric rickshaw battery market, owing to the higher preference for low-cost e-rickshaws, which are mostly equipped with lower-capacity batteries.
However, over the years, the market has witnessed a surge in the demand for e-rickshaws that can travel longer distances without frequent charging. Since most of the electric three-wheelers in India function on the hire-and-operate basis and drivers have to pay operational charges to vehicle owners, they strive to run them for as many as 10 hours a day, to generate excess income. Hence, the demand for more-efficient three-wheelers has been high among drivers in recent years, so they can earn additional income by extending the travel time without needing to frequently charge the vehicles. This, in turn, has led to a rise in the demand for batteries with a higher energy storage capacity.
In terms of revenue, Uttar Pradesh was the largest market for batteries in India in 2021. The growing usage of e-rickshaws by commuters, consistent with the rising need for eco-friendly modes of transportation, especially for last-mile travel, is supporting the growth of electric rickshaw fleets in the state, which, in turn, is providing impetus to the demand for batteries in major cities, including Lucknow, Varanasi, Kanpur, and Noida. Electric rickshaws have also gained considerable traction among local commuters in many small towns of the state in recent years, as these automobiles involve a lower cost of travel as compared to other modes of transportation.
To remain competitive, players in the Indian electric rickshaw battery market have undertaken a range of strategic developments. For instance, in June 2021, Amara Raja Batteries Ltd. expanded its lead–acid battery business and established a new energy strategic business unit, which will create lithium cell and battery packs, EV chargers, and other components. This move has expanded its product portfolio and created a significant growth opportunity in both domestic and international markets.
Key market players are Exide Industries Ltd., Amara Raja Batteries Ltd., Eastman Auto and Power Limited, Okaya Power Pvt. Ltd., Jay Ace Technologies Ltd., Gem Batteries Pvt. Ltd., Luminous Power Technologies Pvt. Ltd. and Z-Power Impex Private Limited.