Budget 2022: Who said what on EV battery swapping policy
Union Budget 2022 has proposed a new policy to promote battery swapping technology in India in an effort to boost the EV industry. With a sharp rise in electric two-wheeler manufacturers over the past few years, and the increase in EV adoption in the segment, the Centre's new policy aims to further consolidate India's EV infrastructure in near future.
Finance Minister Nirmala Sitharaman, while presenting the Budget 2022, said that the battery swapping policy will be brought out in view of space constraints for setting up charging stations and interoperability standards will be formulated.
Sohinder Gill, Director General at Society of Manufacturers of Electric Vehicles:
Introducing the battery swapping policy and recognising battery or energy as a service will help develop EV infrastructure and increase the use of EVs in public transportation. It would motivate businesses engaged in delivery and car aggregation businesses to incorporate EVs into their fleet." Gill also said it will create new avenues for companies to venture into the business of battery swapping.
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Battery swapping technology is seen as a convenient option for EV owners to recharge their vehicles. It allows the owner to detach the battery from the vehicle and charge it remotely. As of now, Indian customers do not have too many choices of electric vehicles which offer this technology. Okinawa, Simple Energy, Bounce, EeVe are some of the electric two-wheeler manufacturers who offer e-scooters which have these tech.
Jeetender Sharma, MD and founder of Okinawa Autotech:
The introduction of the battery swapping policy to improve the country's EV infrastructure is a positive and progressive step that could potentially address the range anxiety issue, which is one of the impediments to a mass-market transition from internal combustion engine-based vehicles to electric vehicles. This policy will be critical in enabling a well-established EV infrastructure across the country while instilling customer confidence in riding EVs on Indian roads. More importantly, this will boost EV adoption in the last-mile delivery space, where time constraints make instant battery swapping more viable than charging the existing battery."
Suhas Rajkumar, CEO and Founder at Simple Energy:
It is heartening to see that the government is looking at transitioning to EVs at a faster pace. Although battery as a service can be implemented for certain areas only, encouraging the private sector to create sustainable business models is a welcome move. Impetus should be given on developing safer battery packs as swapping stations cannot be applied to direct consumers given the safety aspect as this will further lead to making the ownership of the vehicle complex.
Vivekananda Hallekere, CEO and Co-Founder at Bounce:
We welcome Honourable Finance Minister’s progressive vision to facilitate faster adoption of electric vehicles in the country. This is a vindication of the path that we have pioneered for Bounce. We believe this move can enable affordable and clean mobility at scale. At Bounce, we are nearing a million battery swaps already.
Akash Gupta, Co-founder and CEO at Zypp Electric:
The focus and thought towards the EV sector by the honourable finance minister reflects the government's poise towards accelerating EV adoption. This will also help us achieve our vision of expanding our battery-swapping network across 100 cities in the next three years I would have loved if GST in battery and spare parts had also been reduced to 5% like it's there for E-vehicles purchases; this would also help the entire electric vehicle ecosystem.
PB Balaji, Group CFO at Tata Motors:
Plans to create EV charging infrastructure including national policy for battery swapping which when combined with the already announced Automotive PLI scheme, furthers the agenda for green mobility.
Martin Schwenk, MD and CEO at Mercedes-Benz India:
This Budget is overall growth oriented with a clear focus on digitization, electrification, infrastructure development and ease of doing business; aiming to propel a long-term growth of the Indian economy. The battery-swapping announcement is in the right direction and will be helpful to a limited segment. We however need a broader holistic view on the strategy around developing electric mobility for the passenger vehicle segment. A mid-to long term planning for demand creation is needed and we hope the fine prints will have ripple effect and passively stimulate growth for the auto industry.
Venkatram Mamillapalle, Country CEO and Managing Director at Renault India:
"This move will prove to a giant leap for the nation in advocating introduction of cleaner propulsion technologies and will improve air quality and reduce consumption of conventional fossil fuels.
Naveen Munjal, Managing Director, Hero Electric:
We welcome the move by Hon’ble Finance Minister, Nirmala Sitharaman for announcing the commencement of battery swapping and standardization for interoperability. This will open up avenues for further growth, development & expansion of the EV and energy sector.
To use this technology in India in the future, two-wheeler manufacturer Hero MotoCorp and Taiwan's Gogoro have inked a deal. Recently, Reliance Industries and Britain's BP Plc too formed a joint venture for battery swapping technology.
Inderveer Singh, Founder and CEO, EVage:
It is encouraging to see the concerted efforts of the government to reduce the carbon footprint in India. We welcome the proposal to promote electrification, with Battery Swapping Policy which also includes the concept of energy/battery as a service. Exclusive EV zones will also be a positive step towards accelerating EV adoption in India. Though it did not find any mention in this budget, we continue to be optimistic about seeing steps towards EVs getting faster access to loans in the PSL scheme.
Sushant Kumar, CEO and MD, AMO Electric Bikes:
“This (Budget 2022) will help with two things in particular: first, it will alleviate range anxiety, and second, it will increase EV acceptance among the general public. The FM also mentioned a crucial regulatory shift with the battery swapping service as a solution to range anxiety and rapid EV adoption.