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Indian Oil And Sun Mobility Partner To Propel Electric Vehicle Adoption With New Battery Service
Indian Oil Corporation Ltd. has signed a joint venture (JV) agreement with Sun Mobility Pte Ltd. from Singapore. Announced on June 5, this 50-50 JV aims to provide Battery-as-a-Service (BAAS) for small-format electric vehicles.
The JV will focus on deploying and operating BAAS for two, three, and four-wheelers with a gross vehicle weight below 2 tonnes. This approach will allow traditional vehicles to be swiftly converted into electric ones through retrofitting, using docks and batteries. These converted vehicles will function over a network of swap points, including Indian Oil retail outlets.
The collaboration will initially have a paid-up share capital of Rs 2 lakh. This capital comprises 20,000 equity shares with a face value of Rs 10 each, equally contributed by both partners.
The JV plans to scale up to over 10,000 battery swapping stations across more than 40 cities within the next three years. This initiative will cater to the growing demand in India’s electric vehicle market, particularly in the 2W and 3W segments.
| Date of Announcement | Partners | Initial Capital | Number of Swap Stations | Target Segments |
|---|---|---|---|---|
| June 5, 2024 | Indian Oil Corporation Ltd. and Sun Mobility Pte Ltd. | Rs 2 lakh | 10,000+ in 3 years | 2W, 3W, small 4W |
DriveSpark Thinks
By leveraging the existing infrastructure and expertise of both Indian Oil and Sun Mobility, the initiative aims to accelerate the adoption of electric vehicles in the country and reduce dependency on fossil fuels.
This collaboration will also contribute to the government's goal of achieving a significant reduction in carbon emissions and combating climate change.
Furthermore, the partnership is anticipated to drive innovation in the electric vehicle sector, leading to advancements in technology and more affordable options for consumers.
Overall, this joint effort between Indian Oil and Sun Mobility holds the promise of revolutionizing the automotive industry in India and ushering in a new era of eco-friendly transportation.
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