Electric vehicles (EVs)are truly becoming part and parcel of our lives. In fact, the sales in 2021 reflect that adoption of EVs in the country has gone up massively. In 2021, 3,29,190 electric vehicles were sold in India, representing a 168 per cent increase over last year’s sales of 1,22,607 units. With a combined market share of 90 per cent, 2-Wheelers and low-speed L3 Category 3-Wheelers are the most popular electric vehicles. No wonder then that even the government of India is thinking ahead when it comes to the evolution of the segment. In the Union Budget 2022, Finance Minister, Nirmala Sitharaman announced that the government will bring out a battery swapping policy for electric vehicles in the country.
While battery swapping could be a lengthy process for cars, it certainly makes very good sense for two-wheelers and even three-wheelers. Battery swapping will help convert the most expensive component in the EV – the battery – into an operational cost thus significantly reducing the price of the vehicle and also making it at par with the fossil fuel siblings.
The estimated cost of a battery swapping station is ₹ 8-9 lakh excluding the battery costs and that makes it a viable and low-cost venture. A policy on battery swapping will help in wide scale adoption of batteries as a service. This will reduce upfront ownership costs of electric vehicles and link that cost to vehicle running. Since the cost of running electric vehicles is cheaper, the overall running cost with battery service will work out to be very economical.
This is also the reason why the industry has welcomed the decision
Rajeev Singh, Partner and Automotive leader, Deloitte India said, “Battery swapping policy including interoperability could be a big booster for all the start ups already working in this space. It could also help drive movement to electrification of fleets especially for last mile connectivity for both people & goods.”
Keyword: Union Budget 2022: Finance Minister Proposes Battery Swapping Policy For EVs