Taiwanese company Gogoro Inc., a leader in battery swapping technology, is poised to expand its operations in India, contingent on the Indian government’s decision regarding the inclusion of battery swapping vehicles in its EV subsidy programs. Currently, subsidies are only available for fixed battery electric vehicles.
During a recent global conference call, Gogoro executives indicated that the rollout of their battery swapping infrastructure in India will be cautious until the government clarifies whether these vehicles will qualify for subsidies. The company is concerned that the absence of such subsidies could affect its revenue, as it is currently subsidizing all sales itself.
Horace Luke, Founder, CEO, and Chairman of Gogoro, emphasized the importance of government support to remain competitive with other manufacturers who offer home charging solutions. He noted that without inclusion in the FAME 3 program or other similar initiatives, Gogoro cannot offset the cost of subsidies through price reductions. As a result, substantial revenue from Gogoro’s Indian operations is now expected to be realized in 2025.
Gogoro has established its initial 20 Go swapping stations in Delhi and Mumbai and aims to set up 120 more by mid-2024. The company is also engaged with the Ministry of Heavy Industries and the Indian Battery Swapping Association to advocate for the inclusion of battery swapping technology in future incentive schemes.
Once the policy is clarified, Gogoro plans to utilize its partnership with HPCL, India’s second-largest petrol retailer, to boost vehicle sales and expand its battery swapping network. Additionally, Gogoro is leveraging its Taiwanese expertise and collaborating with Indian electric two-wheeler manufacturers, including Zypp Electric, to accelerate its market entry.
Gogoro’s pilot program with Rapido, a bike taxi provider, has demonstrated the potential of battery swapping, with the service seeing a 50% increase in revenue. The company is optimistic about the growth of battery swapping in India and believes it will drive future expansion.
it’s global operations include around 2,570 Go Stations, over 1.4 million battery packs, and 400,000 daily battery swaps. Despite a 7.2% year-on-year revenue decline to $80.9 million in the second quarter, The company has secured additional investments from Sino Assets Limited and Castrol, amounting to $75 million in total.
