New Delhi: Analysing the dominance of electric rickshaws, which currently cover 80 per cent of the EV market in India, Frost and Sullivan has said in a recent report that the e-rickshaws in India will grow to 1 million units by FY2025 from 0.4 million in FY2019.
The study paper focuses on India’s growing e-rickshaw, e-scooter and e-bus market and the business opportunities around them.
Around 72 per cent of the electric rickshaws plying on Indian roads providing last mile mobility solutions to tier 2 and 3 cities, are 0-2 years old and approximately 98 per cent of them are powered by lead acid batteries. These batteries need to be replaced every 6-8 months, with each replacement costing around Rs 25,000-28,000.
Similarly, Deloitte, in its research paper ‘Recharging India’s electric vehicle ambition by electrifying public transport’, described the e-rickshaws as ‘low-hanging fruit’ that can accelerate faster adoption of EVs in India, due to their unparalleled relevance in first and last mile connectivity.
The Frost and Sullivan research focuses on how there is a huge market for retro fitment of swappable battery technology in India. The vehicles with swappable batteries will ensure low cost of acquisition and lower total cost of ownership (TCO) per kilometre compared to buying fixed lithium -ion powered e-rickshaws.