Jindal Stainless enters e-rickshaw market, targets Rs 200 crore revenue

Company showcases stainless steel e-rickshaw prototype in Lucknow expo

Steelmaker Jindal Stainless said on Thursday that it was eyeing Rs 200 crore revenue and a 25 per cent share of the growing e-rickshaw market in India over the next 2 years. The company is in talks with manufacturers to produce stainless steel e-rickshaws.

The company, part of the diversified Jindal Group, expects annual demand of 13,000 tonnes of steel from the sector by 2021.

The company today showcased India's first stainless steel prototype of an e-rickshaw on the third day of the 9th Electric Vehicles Expo in Lucknow to underscore its strategy to harness the e-rickshaw market in India. According to experts, UP is likely to become the largest market for e-rickshaws in the next 5 years and the demand will majorly be driven from tier I and II cities. It is estimated that 600,000 e-rickshaws are sold in India annually and the market is expected to grow at a CAGR of 16 per cent over the next 5 years.

According to Jindal Stainless managing director Abhyuday Jindal, Indian e-vehicle market will be one of the biggest in the world and the company was ready to enhance the value and efficiency of these e-vehicles with sustainable stainless steel body constituents.

“Considering its high market potential, Uttar Pradesh will be one of our key focus areas. We will support e-rickshaw manufacturers in designing and developing stainless steel models. We will associate with e-rickshaw dealers and manufacturers for seamless production of this environment-friendly vehicle,” he said.

The stainless steel e-rickshaw is touted to have superior body and chassis compared to carbon steel units. The life of a carbon steel e-rickshaw is only 2-3 years and it needs to be disposed at the end of lifecycle. These models are also prone to chassis corrosion and require regular maintenance.

According to the company, stainless steel components enhance the life span and safety of e-rickshaws due to a high strength-to-weight ratio, improved crash resistance and corrosion prevention. Stainless steel components lead to 14-15 per cent reduction in overall body weight, resulting in higher battery efficiency.

Additionally, stainless steel e-rickshaws have a much higher scrap value.

By pumping Rs 10,000 crore into the sector through Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME II) scheme, the government is making concentrated efforts towards creating a robust e-mobility infrastructure.