EU budget 2022: electric vehicle companies welcome battery swap policy announcement

Finance Minister Nirmala Sitharaman announced in the Union Budget 2022 that the government would introduce a battery swap policy for electric vehicles in the country. The finance minister said that “interoperability standards will be formulated”, meaning that a uniform standard for batteries in all electric vehicles could be introduced, which could pave the way for the standardization of battery technology. batteries for electric vehicles. The new policy is seen as a positive step to encourage the use of electric vehicles and is widely seen as something that will give the electric vehicle industry a huge boost.

Read also : Announcement of battery exchange policy for electric vehicles

“In view of the space constraints in urban areas for the installation of large-scale charging stations, a battery exchange policy will be put in place and interoperability standards will be formulated,” said the Minister of Public Affairs. Finances Nirmala Sitharaman in his speech on the budget, without going into details.

Read also : The national road network will be extended by 25,000 km by 2022-2023

The finance minister added that the policy will also promote a shift to using public transport in urban areas where special mobility zones with a zero fossil fuel policy will be introduced. This will also support space constraints in urban areas. The domestic EV industry has welcomed the government’s proposal, and there seems to be a consensus among all EV players that such a policy will only boost the EV industry. The Society of Electric Vehicle Manufacturers (SMEV) welcomed the proposal, saying “it will give a huge boost to the electric vehicle industry”.

Read also : Main highlights of the 2022 EU budget for the automotive industry

Sohinder Gill, chief executive of the Society of Manufacturers of Electric Vehicles (SMEV), said the proposed battery swap policy would give “a huge boost” to the electric vehicle industry.

“We welcome the measures announced today by the Honorable Minister of Finance. The budget for 2022-23 gives a huge boost to the electric vehicle (EV) industry. The introduction of the Battery Swap Policy and recognition of battery or energy as a service will contribute to the development of EV infrastructure and increase the use of EVs in public transport.This would encourage companies engaged in car delivery and aggregation activities to incorporate of EVs in their fleet. This will create new opportunities for companies to venture into the battery swap business. Further accelerate the adoption of electric vehicles and raise awareness. This move will benefit the entire segment. ie E2W, E3W, electric cars and buses,” said Sohinder Gill, chief executive of the Society of Manufacturers of Electric Vehicles.

“The budget also pays attention to the need for skilled resources in the industry. The introduction of new skills programs in ITI will address the skills gap that currently exists in the industry. Industry would be happy to work with the government to design customized courses to meet the demands of the electric vehicle industry Overall, the budget aims to strengthen the entire ecosystem of the electric vehicle industry, which will drive demand green vehicles,” added Gill.

Naveen Munjal – Managing Director, Hero Electric, said the proposed policy will address range anxiety issues and battery swap stations will be an asset to the evolution of the electric vehicle ecosystem.

Naveen Munjal MD of Hero Electric, India’s largest manufacturer of electric two-wheelers, said, “This move will open up opportunities for growth and development of the electric vehicle and energy sector in the country. Hero Electric has always been a strong advocate for standardizing EV battery packs to accelerate EV adoption. Interoperability standards will help address range anxiety issues, and battery swap stations will be a boon to the evolving EV ecosystem across the country. »

The EU budget for 2022 is a futuristic budget focused on the deployment of cutting-edge technologies such as electric vehicles, green mobility and digitalisation. The 2022 Budget announced today by the Honorable Minister of Finance is positive for the EV sector, which has reinforced the Indian Government’s commitment to accelerating the EV and green mobility ecosystem in India,” said Sulajja Firodia Motwani, founder and CEO of Kinetic Green.


FADA President Vinkesh Gulati welcomed the proposed electric vehicle policy.

“FADA welcomes and supports government efforts and initiatives towards electric mobility. There is a clear focus on creative, sustainable and innovative business models. Battery Trading and Energy as a Service ( EAAS) will surely contribute to accelerating the transition to clean mobility. The development of special mobility zones for electric vehicles and the promotion of clean technologies for public transport validate the government’s commitment to electric mobility, which would build confidence in the electric vehicle industry in terms of manufacturing, selling and creating a sense of assurance among customers,” said Vinkesh Gulati, President, Federation of Automobile Dealers Associations.

Analysts and observers say a battery-as-a-service policy, along with battery swapping, will certainly pave the way for increased adoption of electric vehicles.

“The policy initiatives around battery as a service and battery swap are a clear directional encouragement from the government to increase the uptake of electric vehicles, addressing the key challenge regarding battery infrastructure, in particular for two-wheelers and three-wheelers, which are seeing good traction and should only take off from here,” said Sridhar V, Partner, Grant Thornton Bharat LLP.

“If implemented effectively, the battery swap policy is likely to go a long way to reducing adoption anxiety for electric vehicles while promoting economies of scale in battery production. also announced its intention to continue the penetration of electric vehicles in public transport and create special mobility zones for electric vehicles, which should also stimulate the demand for electric vehicles.In addition, the inclusion of energy storage in the harmonized infrastructure list will facilitate the availability of cheaper financing for electric vehicle battery manufacturers,” said Shamsher Dewan, Vice President and Group Head – Business Valuations, ICRA Limited.

Some players in the electric vehicle industry have welcomed the government’s intentions to push for the adoption of electric vehicles, but are also cautious about simply promoting battery swapping, instead of seeking to comprehensively simplify the process. ownership of electric vehicles for consumers.

“It is encouraging to see that the government is planning to move more quickly to electric vehicles. Although battery as a service can only be implemented in certain areas, encouraging the private sector to create sustainable business models is an initiative Momentum should be given on the development of safer batteries, as swap stations cannot be applied to direct consumers considering the safety aspect, as this will lead to making vehicle ownership complex,” said said Suhas Rajkumar, CEO and Founder of Simple Energy.


“The fact that the 2022 Union budget did not focus on the traditional automotive sector shows the government’s intention to focus on new technologies with its zero fossil fuel policy. What has been missing is a explicit statement of the expansion of the FAME program and how it can support the expansion of the charging network in India to facilitate the shift from gasoline and diesel vehicles to electric vehicles,” said Maxson Lewis, Managing Director and CEO of Magenta, a company providing a range of services to the electric vehicle value chain, from charging hardware and software, charging services (ChargeGrid) and last mile delivery services using electric mobility.

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