26 Oct 2020
Posted in Automotive
EESL investment in SWAG EV paves way for electric 2W with swappable batteries in India, says GlobalData
Following the news that India’s state-owned Energy Efficiency Services Limited (EESL) has announced to invest in Thailand-based e-mobility player SWAG EV;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:
“EESL’s investment in SWAG EV is expected to pave way for electric two-wheelers with swappable batteries in India and is a major positive development for the Indian e-mobility market. The cost of ownership, along with the availability of adequate charging infrastructure, is a key factor for the large-scale uptake of electric vehicles. EESL’s pilot project with SWAG to implement battery-swapping concept is expected to make electric two-wheelers a more feasible product in India.
“India, with an appetite of 20 million two-wheelers annually, holds massive potential for electric two-wheelers. However, the upfront cost and lack of charging infrastructure have always limited the acceptance. With shared batteries, customers can make 30-40% savings on upfront costs. Additionally, battery-swapping will offer increased power grid flexibility, as batteries can be charged at dedicated stations using renewable resources such as solar, which also tends to bring down the charging costs.
“Besides offering demand incentives, India has recently announced plans to increase the number of charging stations and some major policy changes as part of its ambitious EV target. The recent change in electric vehicle registration policy by the Ministry of Road Transport and Highways, which allows the sale and registration of electric two and three-wheelers without batteries, paves the way for the implementation of battery-swapping business models in India and hence will support EESL to develop a successful battery-swapping ecosystem that offers affordable electric mobility.”