Battery swapping is a potential solution to address a key barrier to electric vehicle (EV) adoption: vehicle affordability. The topic holds interest in the EU and the US, although it has not been commercialized due to disparate vehicle platforms and lack of standardization. Recently, battery swapping has gained attention in Southeast Asia and South Asia. Arthur D. Little (ADL) analyzed the practice’s feasibility among major vehicle segments through a total cost of ownership (TCO) approach and review of qualitative factors.

Ever since the Government of India made public its intention to electrify all new vehicles by 2030, a sudden wave of excitement has gripped the global automotive industry. Several global and local OEMs in India have begun work on their respective India electric vehicle (EV) strategies. Arthur D. Little has interacted with various stakeholders, such as OEMs, government entities and EV ecosystem players, to understand their perspectives.

India may be the third-largest passenger vehicle market by 2020, clocking 5 million units in annual sales. A strong demand, growing market and a thriving supplier ecosystem have attracted several players in the Indian passenger market in the last 8 years, the most recent being Jeep and Kia Motors.