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Home Business

Costs to fall as India to use same batteries for rickshaws, scooters

by Diplomatic Info
April 26, 2022
in Business, International
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Costs to fall as India to use same batteries for rickshaws, scooters
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New DELHI, India: Under a proposed new policy released by think-tank Niti Aayog, India will implement new rules to allow batteries used in scooters, motorcycles and three-wheeled rickshaws swappable across different models.

According to Niti Aayog, the draft policy, which proposes standards for battery pack dimensions and charging connectors to support interoperability, will remove battery costs from the upfront cost of buying electric vehicles (EV), promoting the adoption of EVs.

Currently in India, swappable batteries are not used in the rapidly-expanding electric scooter segment on a commercial scale.

The draft policy, which does not include details of investment plans, will be open to public feedback until 5th June, when a final policy will be drafted. Once finalized, it will be in force until 31st March, 2025.

Niti Aayog also proposed offering buyers incentives for the purchase of EVs that use swappable batteries, and Reuters previously reported that such incentives could be worth up to 20 percent of total battery lease costs.

As part of Prime Minister Narendra Modi’s carbon reduction and climate change agenda, India said it will introduce a new policy for battery swapping to encourage the sales of EVs.

Companies, such as India’s Reliance Industries and the UK’s BP, which formed a battery-swapping joint venture in the country last year, will benefit from the move.

Others in the EV battery field in India, include Japan’s Honda Motor, Indian start-up Sun Mobility, and motorbike maker Hero MotoCorp, have formed a partnership with Taiwan’s Gogoro battery manufacturer.

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