The Central Government of India announced its Union Budget for 2022 which included various proposals for the Indian automotive industry. On 1st February, Finance Minister Nirmala Sitharaman proposed to introduce a new battery swapping policy for EVs via the Union Budget. However, specific details of the policy or its time of introduction are still unclear due to their non-disclosure. The Finance Minister also stated that private sectors will eventually develop sustainable and innovative business models for Battery Swapping Services.
Battery Swapping allows a customer to simply remove his depleted back and replace it with a fully-charged unit. This process greatly reduces the charging time typically experienced by customers and is currently offered by various OEMs in India. These electric two-wheeler manufacturers include Hero Electric, Revolt, Bounce, Simple Energy, and a few Chinese-origin vehicle brands. Therefore, the Finance Minister suggests that a workable battery swapping model needs implementation and adoption by various EV manufacturers.
Acting as the key uniform standard, the upcoming policy will help promote battery swapping in India and formulate interoperability standards. Companies like Hero Electric and TVS Motor Company expressed their initial reactions by stating that they welcomed this upcoming decision. Both companies also stated that battery swapping technology will address range anxiety issues, reduce charging times, and promote clean mobility. In 2021, Ather Energy decided to offer its proprietary fast-charging connector to other electric two-wheeler OEMs to create an efficient ecosystem.
Via the 2022 Union Budget, the Finance Minister proposed special mobility zones for zero fossil fuel vehicles across the country. The Finance Minister also announced an additional tax of INR 2 per liter on unblended fuel from October 2022. This decision will fall in line with the Government of India’s decision to promote the use of blended fuels. For Road Development, the finance minister revealed the government’s plans of adding 25,000 Km to the national highway network.
According to the Prime Minister’s Gatishakti National Master plan, the Government will allocate INR 20,000 crore towards this goal. The Gatishakti National Master plan will also promote the integration of postal and railway networks and new services under ‘Vande Bharat’. Other announcements under the plan include improvements in logistics infrastructure, metro, and ropeways throughout the country. Meanwhile, the 2022 Union Budget will help boost the infrastructure in the North East and establish multi-modal logistics parks.
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