SUN Mobility, a pioneering developer of battery-swapping infrastructure, is initiating a significant transformation in India's electric mobility landscape, particularly for heavy electric vehicles (HEVs) such as buses and trucks. The company's innovative battery-swapping technology attempts to tackle common barriers that have hindered the widespread adoption of electric vehicles, including high initial costs, operational inefficiencies, and concerns regarding vehicle range.
In an interview, Ashok Agarwal, the CEO of SUN Mobility's HEV division, detailed the company’s strategic plans to revolutionise the electric vehicle sector. According to Agarwal, one of the prominent challenges in the deployment of electric buses is the substantial upfront investment required. SUN Mobility aims to mitigate this issue by providing modular and scalable battery-swapping stations that can be established more rapidly and at a lower cost than traditional infrastructures. The company's battery-swappable buses reportedly cost between 40-50 per cent less than those with fixed batteries, potentially making EV options more appealing to fleet operators.
The electrification of buses and trucks is predicted to significantly impact SUN Mobility's revenue streams over the next three to five years. Agarwal highlighted that the battery-swapping model can enhance productivity by approximately 30 per cent while alleviating concerns regarding battery lifespan and performance. Notably, batteries account for nearly 40 per cent of an electric vehicle's price, and by decoupling the battery cost from the initial purchase, SUN Mobility aims to create a more affordable entry point for fleet operators. The company plans to demonstrate the flexibility of their technology over the next 18 to 24 months, with ambitions to establish a leasing model that could reduce barriers to adoption further.
In addressing the business side of operations, Agarwal described their revenue model, which operates under the Energy as a Service (EaaS) framework. This allows customers to enter long-term contracts tied to guaranteed monthly mileage, ensuring flexibility and alignment of costs with actual usage. The approach remains agnostic to original equipment manufacturers (OEMs), allowing various manufacturers to integrate SUN Mobility's swappable battery systems into their vehicles.
The company’s commitment to research and development has resulted in a robust portfolio of intellectual property and the establishment of over 100 products focused on enhancing battery management systems. In conjunction with expanding R&D efforts, SUN Mobility intends to invest in manufacturing capabilities and increase the number of battery-swapping stations nationwide to facilitate their growth.
Agarwal elaborated on the pricing strategy for the swappable buses, which is tailored to the operational parameters of fleet owners. Their calculations indicate that the total cost of ownership for vehicles using battery swapping can be approximately 20-30 per cent lower than using diesel and 10-15 per cent cheaper than conventional fixed battery buses. Such savings can incentivise fleet operators to transition to electric models while maintaining profitability for SUN Mobility.
The efficiency of their battery-swapping process—completed in under five minutes—mirrors traditional refuelling times, which Agarwal noted is crucial for attracting fleet operators who prioritise minimal downtime. Achieving this efficiency involved overcoming challenges of vehicle compatibility and refining station design for quick and seamless service.
The operational savings for fleet operators are significant, particularly considering that electric vehicles benefit from better tank-to-wheel efficiency and lower energy costs. The smaller battery sizes, combined with battery management systems that minimise wear, contribute to further reductions in maintenance expenses and improved vehicle uptime. With optimised fleet management strategies, SUN Mobility aims to concentrate on sectors that benefit most from high vehicle utilisation.
Looking forward, Agarwal projected that SUN Mobility could emerge as a leading force in the HEV market within five years, maintaining a strategic focus on this segment given its high energy consumption and emissions profile. The company has no immediate plans to expand into passenger electric vehicles or charging infrastructure, instead prioritising the advancement and adoption of HEVs to support energy security and reduce emissions in the transport sector.
Source: Noah Wire Services