In Kolkata and its vicinity, e-rickshaws, commonly known as ‘toto,’ are poised to transition to lithium-ion batteries through the introduction of a battery leasing initiative, officials revealed on Sunday. Neuron Energy, a manufacturer of lithium-ion batteries, has collaborated with Urja Mobility to pioneer this leasing model, previously seen mainly in the business-to-business EV sector.
“We’re initiating this initiative in Bengal, offering lithium-ion batteries for e-rickshaws on a lease basis in partnership with Urja Mobility. Our aim is to expand to other regions soon,” stated Pratik Kamdar, CEO & Co-Founder of Neuron Energy.
This move will equip e-rickshaws with GPS-enabled lithium-ion batteries, facilitating their movement across Kolkata’s streets, he added.
He further explained that their objective is to aim for a fleet of 5 million e-rickshaws across the country, with a significant portion in Bengal. Their aim is to substitute obsolete lead-acid batteries with contemporary, effective, and environmentally friendly options via a leasing scheme.
For users, leasing entails paying a monthly fee akin to an EMI without owning the asset.
While lithium-ion batteries offer long-term cost-effectiveness due to their durability, their initial cost remains at least twice that of lead-acid batteries, Kamdar acknowledged.
Regarding security concerns with the leasing model, officials assured that batteries are equipped with GPS tracking and can be remotely deactivated if necessary.
Transitioning to lithium-ion batteries isn’t merely a technological upgrade but also a response to the increasing environmental concerns associated with lead-acid batteries, Kamdar emphasized, citing the Delhi government’s ban on their use in e-rickshaws.
Under the strategic partnership, Urja Mobility will procure batteries directly from Neuron Energy and lease them to fleet companies and individual EV owners through an extensive network of authorized distributors.
“Our asset-light approach offers flexibility as well as accessibility for EV owners. With a monthly lease rental of just Rs 4,500 and a three-year contract, we’re making green transportation accessible to all,” remarked Pankaj Chopra, CEO of Urja Mobility.
West Bengal, known as India’s e-three-wheeler manufacturing hub, holds approximately 15% of the market share, contributing over 12% to total EV production nationwide.
Raj Shah, co-founder of Neuron Energy, attributed their success to their ability to provide customized solutions with quick turnaround times, resulting in a steady increase in sales.
Kamdar discussed the economic aspect, noting that the price of lithium-ion batteries has decreased from a peak of USD 140 per kWh to a more affordable USD 80-85, with expectations of price stability in the near future.
