Incentives under the new Battery Swapping Scheme will be finalized soon in India

Finance Minister Nirmala Sitharaman recently indicated, when presenting the Budget 2022, that a Battery Swapping Policy for electric vehicle charging in congested areas will be drafted soon. The introduction of updated building by-laws has also been announced by the Finance Minister. According to a new report, the Indian government plans to finalise incentives for electric cars (EVs) under its new battery exchange scheme within the next two months.

According to Reuters, the policy would initially focus on battery swap services for electric scooters, motorcycles, and three-wheeled auto rickshaws, boosting sectors such as last-mile delivery and ride-sharing. EV drivers can use Battery Swapping to replace depleted battery blocks with freshly charged ones at swap stations. This is faster than charging the vehicle and relieves drivers of range anxiety.

According to industry experts, because the battery is the most expensive component in an EV, switching it allows companies to offer it as a service via lease or subscription models, lowering the cost of owning and maintaining the car. According to the individual, the government is likely to offer EV owners a rebate of up to 20% of the entire subscription or lease cost of the battery, on top of the rebates they now receive for purchasing clean vehicles.

India set aside 100 billion rupees ($1.3 billion) in 2019 to promote electric vehicles by providing direct incentives to buyers, but only around 10% of this has been utilised. According to the official, incentives for battery changing will most likely come from the same fund. Battery swapping has been sluggish to gain acceptance globally, particularly among automakers.

Tesla Inc tested the model years ago and decided not to sell it to customers, although rival Nio Inc provides swap services throughout China. Contemporary Amperex Technology, a Chinese battery manufacturer, announced intentions to introduce swap stations last month. In India, Hero MotoCorp and Taiwan's Gogoro have teamed up to open swap stations, and start-up Sun Mobility is also providing the service.