As per the EV times, Budget 2022 facilitated the swapping of battery technology and interoperability standards only in electric two-wheelers and electric three-wheelers. The policy however is benefitting a few of the selected brands.

The reactions from EV industry leaders:-

• “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 the 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. Keeping in line with the Net Zero (emissions) commitment of 2070 made by the Hon’ble Prime Minister, the announcement of the PLI (production-linked incentive) scheme focusing on solar modules and reduction of reliance on non-renewable sources of energy via the launch of sovereign green bonds to create a carbon-free economy is a major step ahead.” Naveen Munjal, chief executive officer of Hero Electric 

• “The introduction of the battery swapping policy to improve the country’s EV infrastructure is a positive step that could potentially address the range anxiety issue, which is one of the impediments to a mass-market transition from internal combustion engine-based vehicles to electric vehicles.”Jeetender Sharma, managing director and founder of Okinawa Motors 

• “With the Budget 2022-23 announcement on bringing out a robust battery swapping policy, this vindicates the path that we have pioneered for Bounce. Government and policymakers have recognized battery swapping as the most effective solution to accelerate EV adoption in India (…) We believe this move can enable affordable and clean mobility at scale. At Bounce, we are nearing a million battery swaps already and the government’s decision ties in with our vision that clean and affordable mobility is a fundamental right.” Vivekanand Hallekere, chief executive officer and co-founder of Bounce Motors 

• “Union Budget 2022 sets the pace for the Indian economy’s growth trajectory amidst the challenges brought forth by the pandemic. The big boost to capital expenditure is welcome and it would give a fillip to the Indian economy. For the automobile sector, we welcome the PM Gati Shakti Master Plan focusing on building world-class infrastructure and improved connectivity for commuters (…) In the electric mobility space, we strongly support the measures undertaken by the government to promote clean and green mobility, mainly introducing the battery swapping policy which will be instrumental in keeping an efficient EV ecosystem. There is an impactful thrust towards renewable energy incentives with an increased focus on reducing infrastructural waste for a greener tomorrow” Venu Srinivasan, chairman of TVS Motors, which recently announced plans to invest Rs.1,200 crore in future technologies

• “It is heartening to see that the government is looking at transitioning to EVs at a faster pace… encouraging the private sector to create sustainable business models is a welcome move. The impetus should be given to developing safer battery packs…” Suhas Rajkumar, CEO & founder of Simple Energy 

• “The battery-swapping announcement is in the right direction and will be helpful to a limited segment. We, however, need a broader, holistic view of the strategy around developing electric mobility for the passenger vehicle segment. A mid-to-long term planning for demand creation is needed.” Martin Schwenk, MD & CEO of Mercedes-Benz India, the first luxury carmaker to introduce an EV in India 

• “Building on the excellent budget of last year, the government has wisely continued on the path of prioritizing economic growth with calibrated fiscal prudence. For the Indian automobile sector, which is a significant contributor to the nation’s GDP, the budget offers continuity and also additional opportunities to drive multi-year growth. Specifically, the robust increase in Capex by 35.4% to Rs 7.5 lakh crore and a comprehensive investment plan for infrastructure is a significant growth booster.” P.B. Balaji, group chief financial officer of Tata Motors, the largest-selling EV maker in India 

• “As part of our Last Mile Mobility, we look forward to working with the Government, policymakers, and our partners to formulate and implement the battery swapping policy. This will include introducing interoperability standards as well as driving innovation in Battery as a Service business model.” Rakesh Jejurikar, executive director, auto & farm Sector, Mahindra & Mahindra 

• “The development of special mobility zones for electric vehicles and promoting clean technology for public transport validate government commitment to E-mobility, which would boost confidence in the EV industry in terms of manufacturing and sales, and create a sense of assurance among customers.” Venkatesh Gulati, president, Federation of Automobile Dealers Associations 

• “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.” Sohinder Gill, director general of the Society of Manufacturers of Electric Vehicles 

We are still far away from what Nio already accomplished with swapping battery technologies. The four-wheelers also need the flexibility of different capabilities. Well, yet to see how fast the new policies can be standardized and become applicable even for 4-wheelers also.

However, the EV 4-wheeler manufacturer was clear the policy of battery swapping is not helpful for carmakers. But, it is fast enough for the customers to move immediately on the road. Well, the battery swapping technology is fast enough and what Nio accomplished needs an excellent round of applause.