Gogoro India plans delayed due to unclear subsidies

Taiwan-based Gogoro Inc. said it would ramp up its rollout in India after getting a clarification from the Indian government on extending EV subsidies to battery-swapping two-wheelers. During a presentation of the company’s India plans in a global conference call for the second quarter on Friday, senior company executives stated that the Indian government’s policy on incentives for battery-swapping vehicles has not yet been finalised.

1. Two electric scooters already homologated in India
2. Gogoro has battery-swapping operations with HPCL
3. Indian users of Gogoro e-scooters include Zypp Electric, Rapido 

Why is Gogoro’s India launch delayed?

The firm had been expecting to begin generating substantial revenue from its India operations this year, but this has been pushed to 2025 because of this regulatory snag.

The ramp-up in vehicle sales will be deliberately slowed until the company attains clarity on its ability to access government subsidies, as all sales are currently effectively subsidised by Gogoro, and these sales delays will impact revenue in 2024, the executives said.

“We want to make sure that the subsidy programme is in place to ensure that we remain competitive, or at least equally competitive when compared to other vehicle manufacturers offering charge-at-home solutions. We cannot offset the impact of these subsidies with price cuts until battery-swapping vehicles become eligible for FAME or other government programmes,” Gogoro’s founder, CEO and chairman of the Board, Horace Luke.

“Due to the delay in implementing subsidies to include battery-swapping vehicles, the majority of our India revenues are expected to arrive in 2025,” Luke added.

Gogoro has set up its first 20 Go battery-swapping stations in Delhi and Mumbai. As part of its India expansion strategy, the company had outlined plans to build 120 such stations by mid-2024.

Also See: Gogoro 2, 2 Plus electric scooters homologated in India; launch soon

“While Gogoro is continuing to progress with our battery factory build-out, Go station deployments, and building out its India team and capabilities, the company officials are deeply engaged with the Ministry of Heavy Industries (MHI) as a founding member of the Indian Battery Swapping Association to ensure that the Fame 3 battery swapping vehicles and infrastructure are given the same benefits as charging electric vehicles.

“MHI is tasked with the overall EV roadmap for India, and we are optimistic that our continued collaboration and advocacy will lead to the inclusion of battery-swap vehicles in upcoming incentive programmes, thereby supporting the growth and adoption of sustainable mobility solutions across the country,” the CEO added.

Once the government provides clarity, Gogoro plans to leverage its partnership with India’s second-largest petrol retailer, HPCL, to increase vehicle sales and establish its battery-swapping stations using the latter’s extensive distribution network.

Some of the parts for Gogoro’s two-wheelers and batteries will be produced by Taiwanese contract manufacturer Foxconn at its battery manufacturing facility in Pune. Gogoro recently launched its pilot programme with bike taxi provider Rapido, and the ride-hailing company saw a 50 percent increase in revenue under its fleet operator model using the battery-swapping network.

Gogoro executives also stated that the company has formed alliances with five local Indian electric two-wheeler OEMs, one of which is Zypp Electric, and that vehicle testing has begun for the deployment of these powered-by-Gogoro network solutions in the Indian market.

Speaking about the successful pilot, Luke added that Rapido riders could earn 200 percent of their earlier income by riding a Gogoro with battery swapping, demonstrating that there is no downtime when it comes to battery swapping.

Luke expressed confidence in India’s growth story for battery swapping, stating that Gogoro believes battery swapping is a game changer that will propel the firm forward in places like India.