India's top two-wheeler maker Hero MotoCorp made it's second large investment in the country's fast-growing electric two-wheeler segment in a week. Having invested $57 million in EV bike-maker Ather Energy last week, the company has now pumped in $285 million in its joint venture with Gogoro to expand the EV refuelling network.
The information was part of Hero MotoCorp's regulatory filings. Company CEO Pawan Munjal described the investment as part of their vision of being the future of mobility. Hero MotoCorp and Taiwan’s electric scooter pioneer Gogoro had set up the JV last April to deploy a large battery swapping network in India.
The two-wheeler maker owns 35% stake in Bangalore-based Ather Energy through it's early stage investment in 2016. It will be joined by investment firm Engine No.1 and others to create a battery-swapping network that could result in a consolidation of sorts, as more EV bike makers may join this refuelling network.
An important investment in mobility infrastructure
Munjal further said in a statement that Hero MotoCorp was already partnering with Gogoro to bring modern electric bikes and its battery-swapping network to India and other global markets. "We remain fully committed to sustainability and playing a key role in bringing clean mobility across the world," he said.
Gogoro chairman and CEO Horace Luke said the company was positioning itself to transform the urban mobility landscape. We are proud to be adding PIPE investors Hero MotoCorp and Engine No 1, a strategic investment group, to drive greater ESG (environmental, social and governance) thinking, he said.
Founded in 2011, Gogoro has more than 2,000 GoStations in Taiwan and each day it facilitates over 2,00,000 battery swaps, where riders get a fresh battery installed in less than a minute. Additionally, the company also licenses the battery technology to other automotive companies.
From Hero MotorCorp's perspective, the investment not only brings the necessary heft to India's mobility infrastructure, it also paves the way for the company to bring some of Gogoro's electric scooters into India. How this pans out in their partnership with Ather Energy is yet to be seen.
Battery swapping - A work-in-progress network in India
In India, the battery swapping technology continues to be in a nascent state though the likes of Ather Energy have been quite vociferous around its efficacy. With the mushrooming of electric two-wheelers in India, battery swapping stations may be a solution to get better adaptability of these eco-friendly vehicles.
Homegrown electric vehicle maker EeVe India recently launched EeVe Soul as the company's sixth such vehicle and the first to qualify for the Fame II subsidies. The scooter has dual lithium ferrous phosphate (LFP) batteries that can be unplugged and charged or even be swapped with at a battery swapping station.
Close on its heels, we saw the Bounce Infinity E1 also joining the ranks of battery swapping mobility. The new electric scooter, which offers a range of 85kms per charge and has a maximum speed of 65 km/h, also offered battery-as-a-service for Indian users.
Readers would also recall that Japanese automaker Honda Motors set up a battery-sharing service subsidiary and invested Rs. 135 crores in it. Christened the Honda Power Pack Energy India Pvt Ltd, this subsidiary aims to provide battery sharing services for smaller electric vehicles.
Recently, Hon Hai Precision Industry, popularly known worldwide as Foxconn, also joined hands with Gogoro to help accelerate the latter’s expansion plans in markets like India and China. The Taiwanese refuelling network creator and EV bike maker is hoping Foxconn can help expand its battery manufacturing capabilities.
The Hero MotoCorp-Gogoro deal indicates another round of consolidation, though this time it is at the charging infrastructure level. In less than five years, Gogoro has revenues of $1 billion and over 4.5 lakh battery swap subscribers.
