The electric vehicle (EV) industry will get a big push, especially on the public transport front with the formulation of a Battery Swapping Policy that Finance Minister Nirmala Sitharaman announced in her budget speech, as it provides an affordable solution to the critical issue of range anxiety.
Battery swapping allows consumers to replace their depleted batteries with fully-charged ones at dedicated stations. This reduces the effective charging time for EVs to just a couple of minutes, making it comparable to fueling conventional vehicles.
Making a provision for interoperability standards in the policy will allow the EV industry to collaborate and speed up the process of developing a battery swapping network in the country, experts said.
The shorter charging time with battery swapping also increases the up time for EVs bought for commercial use, thus helping buyers sooner achieve a break-even.
“It would motivate businesses engaged in delivery and car aggregation businesses to incorporate EVs into their fleet,” said Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV).
The finance minister said that the private sector will be encouraged to provide battery or energy as a service. That will create new avenues for companies to venture into the business of battery swapping, experts said.
“Battery swapping policy including interoperability could be a big booster for all the startups already working in this space,” said Rajeev Singh, Partner and Automotive Leader, Deloitte India.
Companies working in this field include startups like Sun Mobility, Chargeup, Battery Smart and Bounce.
While the development of a battery swapping network in the country will benefit public transport and goods transport, it will also give a boost to personal mobility.
“The creation of a strong charging infrastructure alongside the highways across the country would promote the use of EVs for interstate travel. It will solve the issue of range anxiety amongst commuters who want to cover a longer distance,” Gill said.
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The minister said the government would also promote the use of public transport in urban areas.
The focus will be on promoting clean tech and electric vehicles in the public transportation space according to the FM.