Factors that Impact on the India Electric Rickshaw Battery Market in Upcoming Years!

Different transportation systems all across the globe are still mostly dependent on fossil fuels, however, with the surging concerns regarding the environment, the focus is predicted to shift towards electric vehicles eventually. In India, the transportation system consumes about 70% of petroleum products, and the fact that the country is relied on other nations for the procurement of fuel has been taking a toll on gross domestic product. Owing to this, the Indian government is increasingly focusing towards encouraging the adoption of electric vehicles in the country. Moreover, since the pollution levels in urban cities is off the charts, the need for electrifying the transportation system is pressing. 

Due to all these factors, the adoption of electric rickshaws in the country is growing, which, in turn, is resulting in the rising need for electric rickshaw batteries. According to a P&S Intelligence report, in 2019, the Indian electric rickshaw battery market generated a revenue of $385.0 million and accounted for the sale of 4,290.0 thousand units. The market is further projected to reach a value of $722.3 million in 2024, advancing at a 13.2% CAGR during the forecast period (2020–2024). 

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Two types electric rickshaws that operate in the country are load carrier and passenger carrier. The demand for batteries was higher for passenger carrier vehicles in the past, which can be ascribed to the larger usage of these vehicles by commuters. As electric rickshaws have low travel cost, people prefer these over other transportation modes for short distances. Other than this, the demand for batteries for load carrier vehicles is also expected to rise in the near future. This is because of the growing e-commerce industry in the country and low total ownership cost of these vehicles.  

Batteries utilized in electric rickshaws have battery capacity of either <101 Ah or >101 Ah. Between these two, the demand for batteries with capacity less than 101 Ah was higher in the past, which is attributed to their low cost. This being said, the need for electric rickshaws which have the capacity to travel for longer distance, without needing to be charged frequently, is growing in India, which is why the demand for batteries with capacity more than 101 Ah is predicted to increase in the coming years. Batteries are required for replacement of older batteries and by original equipment manufacturers. 

The higher demand for batteries in the years to come is projected to be created for replacement purposes. This is because an electric rickshaw goes through three or four battery replacement cycles throughout its lifetime. Within the country. Delhi has been the largest Indian electric rickshaw battery market up till 2018. However, the demand for batteries is expected to rise significantly in Uttar Pradesh in the coming years, owing to the rising usage of electric rickshaws by daily commuters in small towns in the state. 

Hence, the demand for electric rickshaws batteries in India is growing due to the growing adoption of electric rickshaws and surging air pollution levels.