UNION BUDGET 2022-23 WELCOMES A NEW BATTERY SWAPPING POLICY, A PROMISING FUTURE OF EV ECOSYSTEM – EQ Mag Pro

One of the key highlights for the automotive sector in the Union Budget 2022-23 speech was the announcement of a new Battery Swapping Policy. In her speech, Finance Minister Nirmala Sitharaman announced that the government will implement a battery swapping policy for electrical vehicles, which will also be introduced in the public transport space.

Talking about urban planning, Finance Minister Nirmala Seetharaman hinted that soon there may be prohibited zones for ICE vehicles in cities. Along with that, the government will promote the people to use public transport in urban areas.

In the Union budget 2022-23 speech, she has told that the Central Government will launch a new ‘Battery Swapping Policy’ to encourage the use of electric vehicles. She also said that the government will take initiatives to boost EV infrastructure and EV ecosystem to achieve its broader decarbonization goals.

The main focus will be on expanding EV infrastructure across the country, with more EV charging stations to help vehicle owners to shift to electric cars without the lesser worry of connectivity. Also, the private sector will be encouraged to create sustainable and innovative business models for battery or energy as a service, improving the efficiency of the EV ecosystem.

“Considering the constraint of space in urban areas for setting up charging stations, battery swapping policy will be brought out and interoperability standards will be formulated,” Nirmala Sitharaman said in her budget speech.

Battery swapping is a method in which a used battery is replaced with a fully charged one. It is a potential solution to range uncertainty, reduced vehicle cost and efficient charging arrangement. It will help save time taken in charging the embedded batteries in EVs. Apart from the high cost of EVs, a major cause for the poor sale of EVs in the country has been the lack of charging stations.

The announcements of a battery swapping policy and push for cleantech and electric vehicles will help the EV segment in India. Also, the push on cleaner propulsion technologies will improve air quality and reduce the consumption of fossil fuels.

Government announcement toward promoting a shift to the use of public transport in urban areas will encourage investors towards investment in the EV sector. This will be complemented by cleantech and governance solutions, special mobility with zero fossil fuel policy, and EV Vehicles.

A national battery swapping policy, if executed efficiently could have a huge positive impact on EV manufacturers. In addition to vehicle makers, this policy will benefit new businesses, who will be encouraged to enter this space and work with the government. This will make public transport cleaner, more efficient and profitable in the long run.

This announcement will create opportunities for several new startups. Moreover, zero-emission zones in cities will help to provide the purpose to purchase electric vehicles to be able to enter those zones.