Niti Aayog’s New Battery Swap Policy Promises To Make EVs Cheaper

In an e-scooter or e-motorcycle, battery costs account for nearly 50 percent of the total vehicle cost. That’s the biggest hurdle that manufacturers face when selling their products to the masses. Plus, range limitation and anxiety issues mean that there is still some hesitancy in the minds of buyers making the switch. With that in mind, the government’s Niti Aayog think tank is formulating new policies for battery swapping technology, aiming to reduce upfront costs by a sizeable chunk.

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This plan was set in motion during the annual budget announcement this year as the main emphasis for this policy was to set some common standards for battery swaps. If the batteries were common for all, it would just be like filling fuel from any petrol station.

Currently, there aren’t many players who have explored this route. Revolt and Bounce Infinity are the only two who come to mind, and the latter is still to start deliveries. If we were to take Bounce’s swapping costs into account, an annual fee of Rs 4,200 (Rs 35 x 10 swaps a month x 12 months) would be far cheaper than filling fuel in the most efficient ICE scooter. Plus, with lower upfront costs, as the customer doesn’t need to pay for the battery or lease it out, the actual cost of the EV will be far more accessible.

The battery swapping space is likely to see the arrival of established two-wheeler giants like Hero MotoCorp and Honda. Hero’s Vida electric sub-brand will be launching its first scooter, which is likely to have Gogoro’s battery swapping tech, in March. Gogoro has been one of the leaders of this technology, revolutionising mobility in Taiwan and many other countries.

Similar is the case with Honda, who has been testing out the viability of battery swapping with many three-wheelers in the country. The company is expected to launch a new e-scooter that’s likely to have removable batteries by March 2023.

It will be interesting to see how other EV players like Ather, Bajaj, TVS and Ola realign their strategies with this policy coming into effect. Building a scooter with swappable batteries is more complex and costs a further bit more. However, the benefits to the end user are significantly higher, especially for those who want affordable mobility solutions.