
Why battery swapping for EVs remains a non-starter in India

Summary
- China, the world's largest market for electric vehicles, has embraced battery swapping as a quicker alternative to charging electric vehicles for hours. Japan and South Korea too are headed in that direction. But in India, there's resistance.
A federal policy to encourage battery swapping for electric vehicles may go on the backburner, two people aware of the matter said, in the backdrop of industry fears that forcing common standards is not practical and will hurt innovation.
Swapping drained batteries for new ones is seen as an idea to encourage the adoption of electric vehicles, since batteries take much longer to charge than filling up at a fuel station. Finance minister Nirmala Sitharaman had announced the plan for a battery swapping policy in the budget for FY23 and policy think tank Niti Aayog released a draft policy on battery swapping in April 2022.
"Currently, we are not advancing with battery swapping as a broader policy. Changing the battery is also a very challenging task. Different vehicles have their batteries in various positions, which makes the process more complicated," one of the two people cited above said on the condition of anonymity.
Queries emailed to the consumer affairs ministry, which is involved with the issue, remained unanswered till press time.
Also read | MHI framing incentive scheme for manufacturing indigenous battery parts
The original Niti Aayog draft discussed standardizing battery dimensions and specifications for electric two-and three-wheelers. Later, it was proposed to include four-wheelers and heavy vehicles as well, but this ran into resistance, as batteries in electric cars are charged while the vehicle is idle, and not removed from the vehicle.
According to the person cited above, the focus now is on developing a robust network of battery charging stations, and designing compact and efficient batteries like blade batteries to overcome the challenges associated with standardization and infrastructure costs. These advancements aim to enhance the usability and scalability of EVs across various vehicle segments.
"The government would look at the industry to chart its own growth path, rather than intervening with a policy. The guidelines recently released by the power ministry and the draft guidelines on safety for swapping stations being prepared by the Bureau of Indian Standards would provide the required regulatory framework for the sectors. A policy with standards is unlikely to come in the near term, in a bid to boost innovation," the second person said on the condition of anonymity.
Also read | Battery parts may get a ₹9,000 crore push
India's EV market has witnessed significant growth. According to a market research firm Grand View Research, in 2024, the market was valued at about $8.49 billion and is projected to expand at a compound annual growth rate (CAGR) of 40.7% from 2025 to 2030.
Industry's concern
On 3 January, EV manufacturers met with commerce and industry minister Piyush Goyal as well as officials from the Department of Heavy Industries, the Department for Promotion of Industry and Internal Trade (DPIIT) and the Bureau of Indian Standards (BIS). A top executive at an EV maker who attended the meeting said manufacturers raised their reservations about battery swapping, particularly for domestic companies.
"While battery swapping is relatively easier for two-wheelers, complexities increase for three-wheelers and four-wheelers, and it becomes extremely difficult when considering buses and other heavy vehicles. We have received assurances on these points from the government," the executive said.
The Niti Aayog draft policy had also aimed to promote battery swapping through Battery-as-a-Service (BaaS) business models, which will ensure lower upfront costs, minimal downtime, and reduced space requirements. Battery swapping is part of India’s commitment to achieving net-zero emissions by 2070, announced at the 26th Conference of the Parties (COP26) in November 2021. This goal will require clear pathways to decarbonize high greenhouse gas (GHG)-intensive sectors such as transport and energy.
Also read | Most electric-car batteries could soon be made by recycling old ones
"Standardization would curb innovation," said Anand Kabra, vice-chairman and managing director of battery maker GEON, formerly Battrixx. "Battery requirements for different players vary. Some require fast charging, while others want longer battery life. The requirements for fleets used by e-commerce companies differ from those for e-rickshaws or personal vehicles. Battery manufacturers and entities in the swapping infrastructure space are working on different battery technologies, which will come in various dimensions. As government subsidies decrease, common mobility infrastructure such as battery swapping will likely gain momentum. However, standardization is unlikely to be implemented," Kabra added.
The Union power ministry had recently come up with guidelines for installation and operations of battery swapping stations.
Manvi Sherawat, manager at the India Battery Swapping Association (IBSA), said, "The battery swapping industry is in its early stages but rapidly evolving with cutting-edge R&D and innovation. There are currently over 20 players in this space, with more than 3,500 swapping stations across the country. The recently released power ministry guidelines on battery swapping are welcomed by IBSA, as they provide a roadmap for the industry and will help accelerate EV adoption in India."
Also read | Battery swapping policy gets a NITI Aayog push
Sherawat, however, stressed that lower GST is a key requirement for the industry to boost costs and investments.
"GST on batteries is a major concern. Reducing the tax on standalone battery packs and Battery-as-a-Service (BaaS) from 18% to 5% would lower the total cost of ownership for customers and commercial vehicle drivers. Additionally, a policy defining standards like uniform battery shape and size could stifle innovation in the industry," said Sherawat.
Global trends in battery swapping
Several countries have either adopted or are in the process of implementing battery swapping. China has fully embraced battery swapping, allowing it for both four-wheelers and two-wheelers. Japan is also moving towards adopting swapping technology. South Korea has implemented battery swapping for two-wheelers and is actively developing infrastructure for electric buses and cars. The Netherlands has initiated several pilot projects for battery swapping, focusing on electric two-wheelers and cars.
Also read | The case for subsidizing electric vehicles
In the US, while battery swapping has not yet been widely adopted for passenger vehicles, there are ongoing trials, particularly by companies like Tesla and Nio, exploring its potential for commercial vehicles.