2022 Union Budget: Reacting to measures announced for the electric vehicle ecosystem in the country in the Union Budget 2022 rolled out today, the EV industry in India has welcomed the battery swapping policy which is aimed at faster adoption of EVs. In her budget speech, the Finance Minister stated that the government will roll out a new EV policy on battery swapping with interoperability standards. This move is expected to help in management of space for expansion of EV charging infrastructure.
There were, however, also echos of disappointment in terms of the absence of extension of the FAME scheme and how it can support the expansion of the charging network in India.
Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV):
We welcome the measures announced by the honorable Finance Minister, today. The budget for 2022–23 gives a huge impetus to the electric vehicle (EV) industry. Introducing the battery swapping policy and recognizing battery or energy as a service will help to develop EV infrastructure and increase the use of EVs in public transportation.
It would motivate businesses engaged in delivery and car aggregation businesses to incorporate EVs into their fleet. It will create new avenues for companies to venture into the business of battery swapping. Additionally, creating special clean zones will further accelerate the adoption of EVs and spread awareness amongst the citizens. The move will benefit the whole segment, i.e E2W, E3W, E-cars, and buses.
Naveen Munjal, MD, Hero Electric:
This move will open up avenues for further growth and development of the EV and energy sector in the country. Hero Electric has always been a strong advocate of standardization of EV battery packs to accelerate EV adoption. Interoperability standards will help address range anxiety issues and battery swapping stations will be an asset to the evolving EV ecosystem across the country. Overall, we believe that we are steering forward in our commitment to create an emission free country.
Maxson Lewis, Managing Director & CEO, Magenta:
The introduction of battery swapping policy and interoperability standards will go a long way in building the use cases. The fact that the government will also formulate interoperability standards to improve the efficiency of EV business is a good indication and will support the growth of the infrastructure.
What was missed was an explicit statement of the extension of the FAME scheme and how it can support the expansion of the charging network in India to help facilitate the switch from petrol and diesel-based vehicles to EVs.
Uday Narang, Founder and CEO, Omega Seiki Mobility:
Interoperability standards across industry for EVs will be especially beneficial for electric two and three-wheelers. Our recent foray in swappable technology with our flagship product ‘OSM Rage+’ is the first step towards achieving this dream.
The Union Budget 2022 provided the much-needed impetus which would augment our country’s road infrastructure and projects for the Highway network to grow by 25,000 km this fiscal with investments of 20,000 crore as part of Prime Minister’s Gati Shakti Plan for Expressways . This will not only lead to demand for electric vehicles, but also for ancillaries supporting the EV industry.
Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Limited:
The government’s focus on new age sectors is a very welcome move, and it will help improve efficiencies in various sectors like Railways, Banking and industrial production.
The expansion of highways network will have a positive impact on the automotive sector. In addition, the announcement of a battery swapping policy and push for clean tech and electric vehicles will help faster evolution of EV segment in India. Further, support for new tech development in various areas of electronic sector will go a long way in decreasing the dependence on imported tech and help domestic firms overcome the global supply-chain and geopolitical issues.
Vivekananda Hallekere, CEO & Co-Founder, Bounce:
Government and policymakers have recognised battery swapping as the most effective solution to accelerate EV adoption in India by addressing range anxiety and hesitancy in adoption as well as considering the pragmatic aspects of setting up charging infrastructure – for instance, space constraints in urban areas for dedicated charging stations.
We believe this move can enable affordable and clean mobility at scale. At Bounce, we are nearing a million battery swaps already and the Hon’ble Finance Minister’s announcement ties in with our vision that clean, affordable mobility is a fundamental right.