India’s electric rickshaws are leaving EVs in the dust

From the article:

At a small factory just north of Delhi, a welder named Ram Baran spends several hours each day training his coworkers in metal cutting, molding, and shaping bodies of three-wheeler electric vehicles.

Baran is not an engineer by education. He started working at the factory in 2017 as a helper — dusting, cleaning, and organizing items. A year later, he got the opportunity to upskill and get trained in welding by Chinese engineers. Nearly 80% of Baran’s 200 co-workers have followed a similar trajectory. “[They] taught us all the work,” Baran told Rest of World. “They taught us welding — how to put the parts and cut them. Over time, I picked up the work and got promoted. Now, our people can also teach these things.”

Each month, this upskilled team at the factory in Sonipat — 40 kilometers from New Delhi — produces bodies and chassis for nearly 5,000 three-wheeler EVs, locally known as e-rickshaws, for the New Delhi-based YC Electric, India’s second-largest manufacturer in the segment. In 2023, YC Electric alone sold over 40,600 e-rickshaws, while 82,500 electric cars were sold in the country.

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A favorable policy environment has been crucial for the three-wheeler EV revolution in India, according to Lizbeth Jibi Godwin, research associate at the Center for Public Policy and Research (CPPR). “The subsidies and exemptions from obtaining permits for EVs have made electric three-wheelers an attractive option,” Godwin told Rest of World. “Additionally, the increasing demand for last-mile connectivity in public transport, such as buses and metro services, has led to a rise in electric three-wheelers.”

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Saera Electric, a direct competitor of YC Electric, produces nearly 95% of its vehicles locally, but some parts, like the natural magnet for the motor and critical minerals for the battery, have to come from China because they do not naturally occur in India, Sudip Banerjee, the company’s planning and strategy head, told Rest of World. He said that things could slowly change as more lithium reserves are found across the country.

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The China connection, though, is often hindered by geopolitical tensions. For instance, YC’s next champion product — a high-speed electric auto like the ones its larger rival Mahindra makes — is stuck after border conflicts soured relations between the two neighbors. The development of the new vehicle — which Rest of World snuck a peek at while it was being tested at the Sonipat factory — has been stunted because “people are not able to come from [China]. Business visas are also not being given,” Kakkar said. India has reportedly put a strict visa approval process in place for Chinese professionals, causing delays.