In 2024, the India electric rickshaw battery market captured $203.9 million revenue, and the market is predicted to hit $328.0 million revenue in 2030, advancing at a rate of 8.3% from 2024 to 2030 The substantial market share is captured by the batteries utilized by passenger carriers, ascribed to a large passenger base, resulting in increased demand for the in-expensive, last mile connectivity that results in expansion of the market.

Batteries with a less-than 101-Ah capacity have a 60.6% share, due to an increase in the preference for low-cost e-rickshaws among end users. It is owed to unorganized local players’ dominance in the market, more specifically those who manufacture low-cost electric three-wheelers. Moreover, the market is predicted to experience a faster growth rate in the near future, due to the rising demand for <101-Ah batteries, caused by the surge in e-rickshaws that travel longer distances without any need for frequent charging.

The unorganized, local players in the India electric rickshaw battery market have enjoyed the major share of the revenue pie ascribed to their local and small-scale operations, and delivery of substandard quality electric three-wheelers with a life of approx. duration of 1.8 years. Moreover, the advent of the GST has led the market to get consolidated due to the higher manufacturing cost of electric rickshaws. It resulted in increased preference of the consumers for reliable products.

Moreover, the organized manufacturers capture 48.8% of the India electric rickshaw battery market, due to the increased quality of the products over the years, caused by the more structured and organized market. The established manufacturers offer electric rickshaws with an average life duration of 3.5 years. The increase in the average age of e-rickshaws snowballs the batteries’ demand, caused by the replacement of the older ones. It can be concluded that the rise in the E-rickshaws average life leads to rising in batteries’ demand.

Under the battery type segment, the India electric rickshaw battery market is divided into lead–acid and lithium-ion. The lithium-ion battery has captured the larger market share, of 51.9%, and their sales for e-rickshaws are expected to value at $196.1 million in 2030, caused by the presence of the standard industry sizes that are up to 60% lighter and up to 50% more in energy storage capacity than SLA variants. In addition, the low self-discharge rate contributes to the maintenance of the state of charge for a longer period.

The surge in electric-three-wheeler demand is caused by the ease of convenience and inexpensive nature of transportation it offers for short distances. Already in India, 83% of all the EVs sold are three-wheelers. On an average, the country has 1.5 million electric rickshaws, with an additional   sale of 11,000 per month. This number is expected to be even bigger in reality due to a massive number of unregistered vehicles.

The India electric rickshaw battery market is characterized by the presence of several few players, attributed to the various strategic developments to stay on the competitive edge. For example, SVOLT Energy Technology of China in partnership with Exide Industries Ltd. manufactures lithium-ion batteries. It provided both the companies support to emerge as new-age electric mobility and stationary application businesses.

Therefore, the increased life span of the electric rickshaws, caused by organized manufacturers propel the market with the surge in requirement of the batteries.

Source: P&S Intelligence