New Delhi:Taiwanese electric scooter maker Gogoro Inc., specializing in battery swap technology, will enter India, the world’s largest motorcycle market, in 2022, according to an internal presentation to its investors, accessible by ETAuto.
The startup that started in Taiwan in 2015 will enter the Indian market by partnering with the country’s largest two-wheeler, Hero MotoCorp, to launch Hero-branded two-wheelers powered by the battery-sharing infrastructure of Gogoro, which is said to be available in many cities in India.
The company plans to develop its international expansion through the SwapCos model for the creation of a local joint venture, where the model will own, finance and operate the network. While Gogoro will receive upfront hardware revenue and perpetual license fees through subscription revenue sharing, OEMs will benefit from new business opportunities.
With this business model, Gogoro will activate HW and SW technologies, share its operational know-how and share its proven turnkey business mode. The local OEM partner will provide distribution and branding, local support and operations, focus on consumer acquisition and marketing, and provide capital investments.
If all goes according to the company’s plan, the joint venture entity will be formed in 2021 or early 2022, where funding for the joint venture is expected in 2022. As the company works to finalize the schedule of vehicles, she has identified the cities for the first deployment, which will be Delhi and Bangalore with 7,000 customer contact points across India.
The Taipei-based Gogoro boasts of its portable LEV replaceable batteries, AI-based operating system, and cloud-connected battery management and exchange network.
Looking at the company’s recurring revenue model in Taiwan, over a 10-year period it derives 56% of revenue from recurring Swap & Go battery swap subscription services and 44% from sales. pure and simple material from the first year.
In recent years, the startup has launched scooter sharing services in Europe and battery sharing infrastructure in Japan.
Partly funded by investors such as Temasek of Singapore and Sumitomo Corporation of Japan, the startup believes that establishing a foundation in China and India “will provide a position to grow globally with the benefit of partners. and scale ”. Last May, it partnered with two Chinese two-wheeler manufacturers to offer its battery-sharing infrastructure.
Pawan Munjal, CEO of Hero MotoCorp, said earlier: “With this new partnership, we are committed to bringing a sustainable mobility paradigm, first to India and then to other markets around the world.
The startup has partnered with Foxconn for a smooth operation of the supply chain.
The hero’s EV plans
In addition to its merger with the Taiwanese firm, the country’s leading two-wheeler manufacturer wants to launch an independent fixed-battery electric model in March and mark its entry into the segment. The company uses its R&D facilities based in Jaipur (Rajasthan) and Stephanskirchen (Germany) to develop its own electrical products.
This will allow the two-wheeler manufacturer to play in both spaces and offer its customers a flexible charging ecosystem with both a fixed charging network and an exchange network.
The company is working on its EV plans as part of its emerging mobility business unit, created two years ago. He has already invested in the Bengaluru-based EV startup Ather Energy, which offers models of electric scooters in the market.
Battery exchange in India
Battery swapping, a charging method to replace a depleted battery with a fully charged battery, is seen as a fast charging alternative to the tedious battery charging process in India, where the charging infrastructure is lacking.
While swapping can be a complex issue for passenger cars due to their large battery size, it appears to be a viable option for two-wheelers, bikes, and last mile connectivity modes. Even more, with the latest partnership, the initiative will strengthen the e-2W market in India.
With a potential solution to range anxiety, startups like Sun Mobility have also developed automated battery swap machines as well as smart, lightweight batteries for quick swap.
Read also :