Can Retrofitment Breathe New Lease Of Life In Autorickshaws?

In 2023, the average air quality in India exceeded the World Health Organization guideline by seven times, as per a report by IQAir, and 35 Indian cities were among the 50 most-polluted cities in the world. Road transport, as per International Energy Agency, contributes 20–30% of the urban air pollution in India, thus accelerating the adoption of zero-emission vehicles is critical to keep cities liveable.

India is home to over 7.5 million registered passenger autorickshaws, a significant mode of public transport. Although major cities in India have mandated use of cleaner propulsion technology, such as compressed natural gas and liquefied petroleum gas, autorickshaws still account for 10% of the road transport-related emissions in cities, as per a recent report released by Natural Resources Defense Council on retrofitment. Among the 5.6 million passenger three-wheelers registered in the last 15 years in the country, 47% run on diesel and another 32% on petrol and CNG/LPG/petrol hybrids, adversely impacting the air quality.   

To address this conundrum, adoption of electric vehicles is being duly supported by both national and sub-national governments. Delhi, for instance, has made some strides towards shifting to a cleaner future by reserving all new permits only for electric autorickshaws. While electrification of autorickshaws is imperative, retrofitment of existing diesel and CNG vehicles with EV kits could be a catalyst to mitigate tailpipe emission, enabling utilisation of existing vehicles efficiently. In addition, retrofitting can generate skilled employment opportunities and enhance driving and commuting experience. 

Seven states, representing 16% of the total registered autorickshaws and 10% of diesel autos, are already offering incentives for retrofitting kits to encourage the shift. States like Andhra Pradesh, Uttar Pradesh and Bihar — home to 24% of the total registered rickshaws and 40% of diesel autos in India — could also adopt similar measures to accelerate this transition.

Electric retrofitment technologies are intermediate solutions that may breathe a new lease of life in used vehicles, especially ones that are expected to incur higher maintenance costs. As per a study by International Copper Association – India, an electric three-wheeler can yield an annual savings ranging from Rs 1.62 lakh to Rs 2.16 lakh on operation and maintenance cost based on the fuel variants. It will liberate the drivers from the clutches of changing gears and enhancing driving experience, at 35% of the cost of a new electric auto.

The reincarnation of autorickshaws with vibrant colours and green number plates will give it an immiscible sense of new identity compared to the uniform hues of the herd. The opportunity cost of this transition is already tilted in the favour of the drivers as it unlocks several health benefits for drivers and provides necessary experience to drive an electric auto.  

While recognition and regulatory support to retrofit can entice demand, a credible and resilient supply chain is equally crucial for adoption of this nascent technology. Hybrids were pivotal in ensuring seamless transition from crude to gas, however in case of electric retrofitment, this option is unavailable. As technology evolves, regulations are modified to enable smooth transition but may overlook interim solutions such as electric retrofitment.

For instance, electric vehicles are exempted from getting permits for commercial use, and in case of  retrofitment, drivers may have to relinquish their valuable permits, obtained with much difficulty. There are several challenges from product performance to arranging mortgage on the vehicle to higher insurance costs and redemption of paid taxes causing hesitation among drivers. Vehicle is not only an asset but their primary means of livelihood, hence, the risk of retrofitting often weighs higher than the rewards.

Building an ecosystem for a new product is often considered a threat for the incumbent, however endorsement and partnership to retrofit by original equipment manufacturers could be a segway for transition and learning. Though a few startups have taken lead in the cost-intensive homologation processes to promulgate retrofitment kits and associated maintenance services, their limited distribution and service network affects the confidence of auto drivers. There are other technical challenges of scrapping and the ambiguity about registration of retrofitted vehicles that discourages adoption.  

NITI Aayog estimates the penetration of electric-three wheelers to reach 80% by 2030, but the emission from existing vehicles will continue to affect the air quality. As the details of FAME-3 scheme is being discussed, clearing the ambiguous air pertaining to retrofitment can instil much-needed endorsement and confidence in the electrification journey of three-wheelers in India. Promoting retrofitting of existing vehicles, alongside new electric vehicle adoption, offers a practical, immediate, and cost-effective path toward improving urban air quality and advancing sustainable mobility in India. 

Disclaimer: The views expressed here are those of the authors and do not necessarily represent the views of NDTV Profit or its editorial team.