Efficiency Analysis Of Electric Two-Wheeler Battery Systems In India: A Data Envelopment Analysis Approach

Abstract

The rapid rise of electric two-wheelers (E2Ws) in India, driven by urbanization, environmental concerns, and supportive government policies, underscores the need to evaluate the efficiency of their battery systems. This study employs the Slack-Based Measure (SBM) model of Data Envelopment Analysis (DEA) to assess the performance of ten leading E2W manufacturers in India from 2021 to 2024. Utilizing a comprehensive dataset, the analysis focuses on critical inputs—price, battery capacity (kWh), and charge time—and outputs—range and battery efficiency (measured in MPGe). Results reveal significant efficiency disparities among manufacturers, with top performers like B2 achieving super-efficiency scores up to 1.917, while others, such as Bgauss, exhibit inefficiencies with scores as low as 0.132. The study further explores the environmental implications of battery production, highlighting the high-water usage and potential contamination from lithium-ion batteries and the pollution risks associated with lead-acid batteries. Government initiatives, including the National Electric Mobility Mission Plan (NEMMP) and a reduced Goods and Services Tax (GST) from 12% to 5%, have accelerated E2W adoption, yet challenges like fire risks and limited recycling infrastructure persist. The findings advocate for optimized battery designs, enhanced recycling processes, and continued policy support to bolster sustainability and market growth. This research provides actionable insights for manufacturers and policymakers to advance the efficiency and environmental sustainability of India’s E2W industry.