Global explorer in battery swapping technology Gogoro Inc., spotted in Taiwan, declared that it will facilitate its launch in India following transparency from the Indian government about the expansion of EV allowances to battery switching two-wheelers.
During Gogoro’s presentation of its goals for India on a global conference call, senior company representatives mentioned that the Indian government’s policy on incentives for battery-swapping automobiles has not yet been finalized.
“Since Gogoro presently effectively subsidizes every sale, the ramp-up in vehicle sales will be purposefully halted until we are certain of our capacity to secure government subsidies. These sales delays will have an effect on revenue in 2024,” Gogoro officials said on the conference call.
“We want to make sure that the program of subsidies is in place so that we can stay competitive, or at least on par with other vehicle manufacturers who provide charge-at-home options. Price reductions are not possible until battery-swapping vehicles are qualified for Fame or other government programs,” Horace Luke, Gogoro’s Founder, CEO, and Chairman of the Board, stated on during the company’s Q2 global conference call.
Due to a legal snag, the company’s initial expectations of beginning to generate significant revenue from its activities in India this year have been pushed back to 2025.
Luke continued, “The majority of our India revenues are expected to arrive in 2025 due to the delay in implementing subsidies to include battery swapping vehicles.”
Delhi and Mumbai are home to Gogoro Inc.’s first 20 Go exchanging stations. The corporation had previously stated that it planned to construct 120 of these stations by the middle of 2024 as part of its India development strategy.
“MHI is tasked with the overall EV roadmap for India and we are hopeful that our continued collaboration and advocacy will lead to the inclusion of battery swap vehicles in upcoming incentive programs, thereby supporting the growth and adoption of sustainable mobility solutions across the country,” the CEO continued.
Gogoro intends to use its alliance with HPCL, the country’s second-largest gas retailer, to boost vehicle sales and launch its battery-swapping stations by utilizing the latter’s vast distribution network as soon as the government issues clarification.
Speaking more specifically on the possibility of battery swapping in the nation, Horace Luke said that Southeast Asia, India, and other markets are ready for the disruption caused by electric vehicles.
In response to questions from investors about the company’s operations in India, he said that the company will use its experience in Taiwan to expedite its global expansion.
Taiwanese contract maker Foxconn will produce several parts for Gogoro’s two-wheelers and batteries at its battery production facility in Pune.
Recently, Gogoro and bike taxi provider Rapido started a test program. According to Gogoro’s fleet operator model, which uses a battery-swapping network, the ride-hailing startup witnessed a 50% increase in revenue.
During the conference call, Gogoro representatives also mentioned that the firm has partnered with five regional electric two-wheeler OEMs in India, including Zypp Electric, and that vehicle testing has started in preparation for the introduction of these powered-by-Gogoro network solutions in the Indian market.
In reference to the successful pilot, Horace Luke said that Rapido riders can ride a Gogoro with battery changing and earn 200% of their previous revenue, proving that battery swapping never has a downtime.
Luke revealed hope in the India evolution story for battery changing, mentioning that Gogoro thinks battery switching is a game changer that will move the firm forward in places like India.
Gogoro’s global portfolio comprises of around 2,570 Go Station locations, over 1.4 million battery packs in circulation, over 400,000 daily battery substitutions, and over 10.6 billion total kilometers ridden on its network.
Gogoro’s revenue decreased 7.2% year over year to $80.9 million in the second quarter. Gogoro has announced two major investments as part of its worldwide fundraising plans: Sino Assets Limited would provide an additional $25 million in stock, on top of Castrol’s $50 million pledge.
