Now you can buy electric vehicles without pre-fitted batteries and can also register them. The Ministry of Road Transport has sent a message to all states to allow this. This move of the government will reduce the cost incurred by the vehicle owners to purchase an electric vehicle and save about 40 percent in road tax (road tax) during the registration of such vehicles.
However, such vehicles will require the approval of testing agencies. Even batteries that can later be fitted for permanent use or under a swapping mechanism will need type approval from testing agencies.
Currently, battery costs account for about 30–40 percent of total vehicle costs. The objective of the Ministry of Road Transport behind the initiative to reduce the cost of batteries is to increase the penetration of electric vehicles as fewer people show interest in buying them due to the higher price of such vehicles. The government's move will also create a new business ecosystem of manufacturing and supplying standardized batteries, allowing people to buy or rent batteries at a cheaper price.
According to the report, a source says, "When you go to buy a diesel or petrol vehicle, you don't buy a petrol pump. Similarly, why do people need to buy in-built batteries, if this market And when do people even have the option to swap batteries? "
The ministry said that there is no need to give the make, type, or any other information of the battery for registration. However, batteries, regardless of whether they are regular batteries or swappable, are required to have their type-approved by testing agencies according to central motor vehicle regulations.
Industry sources say this move of the Ministry of Transport will create a huge opportunity for the battery swapping industry. A source said, "If a car owner can get a fully charged standardized battery for his electric car at a rent of Rs 500 to Rs 600 per week, then he does not need to buy a full battery. Life is also for 3-4 years. They can avoid upfront investment and this will make the business like electric cab financially viable. "