What did the Union Budget 2022 have in store for the Electric Vehicle Sector?
In her recent Union Budget speech, Finance Minister Smt. Nirmala Sitharaman announced some significant measures that the government has proposed to further boost electric vehicle (EV) adoption in India. She spoke about introducing a new battery swapping policy that would further strengthen EV infrastructure. She also touched upon formulating interoperability standards and opening up defense R&D to private EV manufacturers. This will certainly have a positive impact on developing auto components within the country. Let us look at this closely.
Battery swapping policy: a positive step
This was a key announcement for EV players which will help to develop a comprehensive EV ecosystem in the country. Both EV manufacturers and players who are present in the charging space will benefit from this policy. Once this comes into effect, it will definitely standardize and accelerate EV charging/swapping stations in the country. A mass presence of such stations will alleviate range anxiety and charge hassles for the Indian consumers.
Under the new policy, the government is encouraging more private players to take initiative for setting up battery swapping stations and continue R&D to improve battery swapping technology. The policy will also make the battery-as-a-service model more mainstream for Indian consumers enhancing last-mile mobility for both people and goods.
The Honorable Finance Minister also touched upon interoperability which will further push battery technology for electric vehicles. Interoperability is a concept where the batteries of a particular EV manufacturer should be compatible not only with their own vehicles but any other Electric Vehicle. The standardization of battery technology will make way for interoperability and further reduce the purchase and operational costs of EVs for customers. This move will also encourage more domestic battery manufacturing to develop a thriving local battery industry.
Bounce welcomes the Government’s EV policy efforts
This announcement is in line with Bounce’s vision that battery swapping is the next big thing in the EV space and a gamechanger for mass EV adoption in India. That is why in December 2021, we announced our all-new electric two-wheeler (E2W) the Bounce Infinity E1 with a removable battery. With E1, we are offering a one-of-a-kind mobility solution — battery as a service option.
When customers buy Infinity E1, they can just buy our e-scooter without the battery. This makes E1 more affordable for customers at INR 45,099 (ex-showroom Delhi) only. When they choose this option, they not only save on the upfront cost but also make an economical choice for running the vehicle without worrying about battery maintenance. Also, customers no longer have to fret about charging, they can simply use the Bounce app to locate their nearest battery swapping station. Our battery swapping stations function similar to conventional fuel stations where customers can drop in to exchange their near-empty batteries for a fully charged one. When choosing this option, customers can go for a battery-as-a-service monthly subscription of INR 1,249 to fulfill all their battery needs. If not, customers just have to pay INR 35 every time they swap batteries at our stations which amounts to INR 0.65 per km on average.
Over the next twelve months, Bounce has plans to invest over USD 100 million towards widening our range of battery swapping stations. Our vision is to deploy the world’s largest and densest battery-swapping network which will support the improvement of EV infrastructure in the country. We are happy that the government is in sync with our vision and has plans to introduce policies that will positively impact our commitment and bring a big change in the Indian electric mobility space.
