The Taiwanese tech supplier stated that battery-swapping two-wheelers are unable to compete with fixed battery models unless they receive identical subsidies.
Gogoro Inc., a leader in battery-swapping technology based in Taiwan, announced plans to accelerate its expansion in India following a clarification from the Indian government about extending electric vehicle (EV) subsidies to battery-swapping two-wheelers, which currently only apply to fixed battery vehicles. During a global conference call, senior officials from Gogoro revealed that Indian government incentives for battery-swapping vehicles are still being discussed.
Gogoro officials stated that the company will slow down its vehicle sales until there is clear guidance on accessing government subsidies, as Gogoro is currently subsidizing all sales. This delay is expected to affect the company’s revenue in 2024. Horace Luke, the founder, CEO, and chairman of Gogoro, emphasized during the company’s Q2 global conference call that the firm is awaiting the establishment of a subsidy program to maintain competitiveness against other manufacturers that offer charge-at-home solutions. Luke noted that without subsidy eligibility for battery-swapping vehicles, Gogoro could not counterbalance subsidy impacts with price reductions.
Initially, Gogoro had anticipated significant revenue from its India operations starting this year, but this projection has now been deferred to 2025 due to regulatory delays. Luke mentioned that substantial Indian revenues are now expected in 2025 because of the delay in subsidy implementation for battery-swapping vehicles.
Gogoro has already established its first 20 Go swapping stations in Delhi and Mumbai and plans to construct 120 stations by mid-2024 as part of its expansion strategy in India. The company is progressing with its battery factory, Go station deployments, and team building in India. Gogoro officials are actively collaborating with the Ministry of Heavy Industries (MHI) and the Indian Battery Swapping Association to ensure that battery-swapping vehicles and infrastructure receive the same benefits as electric vehicles with charging stations.
Luke expressed optimism about Gogoro’s ongoing partnership with MHI and its advocacy efforts, which are expected to lead to the inclusion of battery swap vehicles in future incentive programs. This inclusion would support the adoption of sustainable mobility solutions across India. Once the government provides more clarity, Gogoro plans to use its partnership with HPCL, India’s second-largest petrol retailer, to boost vehicle sales and expand its network of battery-swapping stations.
Luke also highlighted the potential for electric vehicle disruption in India, Southeast Asia, and other markets. He mentioned that Gogoro would leverage its experience in Taiwan to expedite its international expansion. Some parts for Gogoro’s two-wheelers and batteries will be manufactured by Taiwanese contract manufacturer Foxconn at its facility in Pune.
Gogoro recently initiated a pilot program with Rapido, a bike taxi provider, which saw a 50% increase in revenue through its fleet operator model utilizing the battery-swapping network. Gogoro has also partnered with five Indian electric two-wheeler OEMs, including Zypp Electric, and has begun vehicle testing to deploy its powered-by-Gogoro network solutions in the Indian market. Luke commented on the success of the pilot, noting that Rapido riders could double their income by using Gogoro’s battery swapping system, as it eliminates downtime associated with battery charging.
Luke is confident about the growth potential for battery swapping in India, believing it to be a transformative solution for the region.
In its latest financial update, Gogoro reported second-quarter revenue of $80.9 million, a decrease of 7.2% year over year. The company also announced new investments as part of its global fundraising efforts, including an additional $25 million in equity from Sino Assets Limited and a $50 million commitment from Castrol.
