Beyond Fuel: Exploring Lithium-Ion Battery-Powered Three-Wheelers in Indian Markets

The transportation sector in India has been going through a sea change – and rightly so. It’s very encouraging to see awareness spread among an increasing number of users, who are steadily moving away from fast depleting, non-renewable energy sources like fossil fuels, and transitioning to more sustainable powering options like battery powered electric vehicles. It is an important step to save our planet.

This blog, shines the torch light on the three-wheeler sector in the Indian market, which includes passenger e-rickshaws and cargo electric three-wheelers (E3Ws). It’s heartening to see this sector leading the way in electric mobility, with continued double-digit growth. If we are to attribute reasons to this favourable trend, part of the credit goes to consistent demand for passenger transportation, and the growing e-commerce businesses which use three-wheelers for their last-leg operations. On the economic front, the growth can be attributed to the increasing awareness, that e-three-wheelers are a more affordable option for individual motorists, as well as fleet owners. The Business Standard of 15th April 2024 offers an interesting insight. Its report states that as per industry estimates, the average spend on CNG per day is Rs. 450 for three-wheelers in Delhi, whereas the average spend for an E3W is substantially lower at Rs. 200 per day. This long-term cost saving, is a compelling reason that’s spurring the transition to E3Ws.

Let’s reveal some interesting figures concerning the Indian three-wheeler market.

The Indian Three-wheeler Non-Electric Powering Story – 2019 to 2024

	FY 19	FY 24 (Data updated on 26/2/24)	% Increase / (Decrease)
CNG	1,98,616	3,03,817	52.9%
LPG	1,03,950	25,442	(-75.5%)
Diesel	3,19,010	1,10,845	(-65.3%)
Petrol	23,713	12,116	(-48.9%)

Data as per 15th April 2024 Business Standard Article first published on 26th Feb 2024

The Great Big Indian Three-wheeler ELECTRIC Powering Story – 2019 to 2024

	FY 19	FY 24	% Increase / (Decrease)
Electric Power	*1,16,031	**5,71,726	392.7%

*Data as per SMEV Report
**Data as per Vahan Portal

The numbers show a clear trend of three-wheelers moving away from fossil fuels, towards CNG and Electric Powering, with the latter coming out the clear winner – in absolute numbers as well as percentage increase – over the period FY 19 to FY 24.

Coming to the comparative market share of three-wheelers in this time frame, here too, the story is compelling as seen below:

Comparative Market Share	FY 19	FY 24
Percentage of E3Ws in the total Three-wheeler Pie	15%	*54%

*Data as per Vahan Portal dated 2nd Mar 2024

A clear confirmation, that even without March 2024 data, every second there-wheeler in India, is electric – a very encouraging trend indeed!

Putting the spotlight on electric powering of three-wheelers, lead-acid has held sway for a time, but the preference scale is slowly tilting towards lithium-ion batteries. While lead-acid batteries are less expensive and safe, they are also heavier, larger, and have lower energy density and cycle life compared to lithium-ion batteries. What a lithium-ion battery offers, is higher energy density, longer cycle life, lighter weight, and smaller size. Yes, the initial cost is higher, but the low-maintenance cost and longer lifespan, generate savings that offset the higher initial costs, over a long horizon. Furthermore, with in-built advanced Battery Management Systems (BMS) the safety quotient is enhanced, and its CAN Communication Technology too, provides valuable information that users find extremely useful.

Let’s examine the deterrents to transitioning to lithium-ion powered batteries for E3Ws – the prominent ones being High Initial Costs, and Low Charging Infrastructure.

As far as the high initial cost of lithium-ion batteries is concerned, efforts have consistently been on, for lowering costs, and these efforts have paid off too. According to P & S Intelligence, the prices of Li-ion batteries have fallen sharply over the last 10 years, at a rate of around ~30% annually. Apart from this, as explained above, the operation and maintenance costs are substantially lower over the long term, generating future cost savings. Furthermore, the long life-span of lithium-ion batteries, indirectly contributes to cost savings, as replacements are required after a longer time frame.

Government is also playing a major role to tackle the cost deterrence, through its subsidy schemes that have catalysed the transition to E3Ws powered by lithium-ion batteries. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) scheme, offered subsidies ranging from Rs. 32,200 to Rs. 1,11,505 depending on the size of the battery. A sizable amount of Rs 987 crores was allocated for battery subsidies, out of the scheme’s total outlay of Rs 10,000 crore for incentivising electric three-wheelers. Positive steps for cost reduction indeed!

Under the new Electric Mobility Promotion Scheme 2024 (EMPS 2024), the total incentive allocation has been reduced to Rs. 500 crores for the period April to July 2024, targeting 370,000 electric two-wheelers, e-rickshaws, and electric auto rickshaws exclusively. The EMPS incentive is Rs.5,000 per kilo-watt hour of battery capacity subject to a ceiling of 15% of the ex-factory cost, which translates into Rs. 25,000 for e-rickshaws and e-carts; and Rs. 50,000 for e-autos – whichever is lower for each segment.

The second deterrent is that lithium-ion charging infrastructure is in its nascent stage. This too is on the priority list of our government as well as private entities. With our Central and State Governments taking serious note of this, plans are underway to set up charging networks across the country and especially on highways , urban area, and residential/shopping complexes. Another area that is being explored, is the facility of Battery Swapping Stations, where the discharged battery can be exchanged for a fully charged one, thus providing an alternative for drivers to charge the battery in areas with limited charging infrastructure.

Industry experts are betting on cost competitiveness, economic advantages, and government incentives to boost the rate of transition to E3Ws; and are very hopeful that the NITI Aayog’s 80% E3W market penetration by 2030, will be surpassed.

Apart from all other benefits, the good forecast for transition to E3Ws, comes as a welcome answer to our planet’s dire need to curb air and noise pollution. The trajectory for E3Ws in the Indian market is set for a positive upward run, with governments, industry stakeholders, motorists, and environmentalists working in tandem. This thrust on electric mobility indeed holds out much-needed hope for our motherland.

For your powering needs, Battrixx stands by you, offering affordable energy efficient and sustainable green powering solutions for your E3Ws, and in fact every kind of Electric Vehicle – from electric bicycles, to e-marine transportation. With safety high on our priority list, our lithium-ion battery packs are equipped with advanced Battery Management Systems (BMS). Our batteries meet the highest industry standards, which is why we have been awarded the ARAI Certification under AIS 156 Amendment III Phase 2. Battrixx even offers customisation to make our battery packs scalable to your needs.

Visit our website www.battrixx.com to explore our full range of green clean energy systems, that power the entire gamut of Electric Vehicles, as well as Golf Carts, Forklifts, Marine Transportation, Portable Devices, UPS, Telecommunication and more…