SUMMARY
Foxconn is reportedly interested in entering the Indian market either with Taiwanese battery swapping platform Gogoro or individually
Foxconn’s battery swapping division executives met government officials to discuss its foray in the Indian market
Earlier this year, Hero MotoCorp also partnered with Gogoro for its EV swapping infrastructure
Taiwanese contract manufacturer and Apple supplier Foxconn is reportedly in talks with the central government for introducing its electric battery swapping infrastructure in India.
In a meeting with government officials about two weeks back, Foxconn executives expressed interest in entering the Indian market either with the Taiwanese battery swapping platform Gogoro or individually, officials aware of the matter told the Economic Times.
Foxconn was not immediately available to confirm the development to Inc42.
As per one of the officials, the discussion took place with Foxconn’s battery swapping division, which includes manufacturing swapping stations, battery packs, power electronics, and more.
“Generally, their first preference is to do it through their partnership with Gogoro, which is what they have done in Taiwan, Indonesia, China, and some other markets as well. That is the plan for India too,” the official was quoted as saying.
Speaking in context of the new draft battery swapping policy introduced by NITI Aayog, the official reportedly said, “They (Foxconn) have been engaging to understand more on what is happening on the policy front (and) what is happening with respect to battery standards, more specifically battery dimensions because the Indian government is looking to standardise the battery dimensions, which might or might not be the one that Gogoro uses.”
The draft EV battery swapping policy introduced by government think tank NITI Aayog in April this year focuses on several points including lowering the tax rate on Lithium-ion batteries, standards and specifications for battery pack dimensions, subsidies for battery providers, and more.
While the final battery swapping policy is yet to be released, the officials aware of Foxconn’s talks with the government told the publication that the Taiwanese company would enter India with its battery swapping infrastructure even if the government-mandated dimensions fail to match with Gogoro’s existing swapping infrastructure.
For the uninitiated, battery swapping for EVs, which is an alternative to battery charging, involves exchanging discharged batteries for charged ones, thus, providing flexibility to charge them separately while the vehicle remains in operational mode with negligible downtime. This infrastructure is increasingly getting more attention from both the government and the private sector.
Earlier this year, Hero MotoCorp also partnered with Gogoro for its EV swapping infrastructure.
With the growing number of EVs on the Indian roads, sustained battery swapping technology is also getting more prominence.
As per a recent Redseer report, the number of electric two-wheelers in India, which is reportedly Foxconn’s target segment for battery swapping, is expected to jump to 78% of the total two-wheeler sales in the country by 2030.
On the other hand, the total number of EVs on Indian roads stood at 13.34 Lakh units as of mid-July this year, with the Indian government aiming to have 3 Cr EVs in the next two years.
With EVs becoming a global focus due to rising emphasis on curbing pollution and climate change, the battery swapping and charging infrastructure market is set for rapid growth. As per a research report, the global EV battery swapping market is projected to rise to $890 Mn by 2030, growing at a compound annual growth rate (CAGR) of 24.4% during 2022 and 2030, from $125 Mn in 2021.
