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Union budget 2022 presents a new policy on EV battery swapping technology

new ev battery swapping policy by union budget 2022

In Union Budget 2022,  Finance Minister introduces a new EV battery swapping policy, and one for Electric vehicle infrastructure to promote a clean mobility ecosystem in India.


  • New battery swapping policy is introduced in India in the Union budget 2022, expected to encourage faster adoption of EVs by standardising swappable technology.
  • The policy primarily focuses on expanding EV charging infrastructure across India.
  • Special mobility zones with zero fossil fuel policy to be introduced to promote a shift towards the use of public transport in the urban sector.

Shocked about the recent crypto tectonic shift in India? Here is another groundbreaking news for Indian EV enthusiasts from the office of the union ministry. 


Amidst the current debate among EV manufacturers for swappable batteries and integrated batteries, Finance Minister, Nirmala Sitaraman, in the union budget 2022-2023, announced the introduction of a new EV battery swapping policy to promote the EV ecosystem and clean mobility of India.

Speaking of budget 2022, she also added that the policy primarily focuses on expanding EV infrastructure, to make a bigger shift towards the electric ecosystem in India, which currently is booming exponentially. 


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“Battery swapping policy and compatibility standards will be formulated soon. The private sector will be encouraged to develop sustainable and innovative business models for Battery or Energy as a service”, said the Finance Minister.

By 2030, India has set a target of 70% sales for commercial EV, 30% private EV cars,40% buses,80% of 2 and 3 wheelers. However, the high cost of EVs and only 1028 EV charging stations across India are the major constraints for the slow-moving sale of Electric vehicles in the country.

“To promote a shift to the use of public transport in urban areas, special mobility zones with zero fossil fuel policy to be introduced,” she said.

Unified solution

This new EV battery swapping policy will open up avenues for the growth and development of the Electric vehicle and energy industry in the country. By standardizing the swapping technology, GOI paved way for many companies to start implementing and delivering a unified product to customers. 

Prior to the policy, the main concern was the battery and vehicle compatibility for a swappable technology to work. Now after the standard norms, a unified solution will boost the swappable battery technology and provide a solution to the vague state where everyone in the EV industry was until now. This unification will make the swappable technology as easy as the “AAA” batteries in a TV remote”. 

working of battery swapping technology
working of battery swapping technology

Need of the hour

The standard norms for the battery swapping technology were the need of the hour, considering the ongoing debate between EV manufacturers and critics. Companies like Ola electric, who already rolled out EVs with integrated batteries and aimed for million deliveries by year’s end, are in a state of vulnerability as the battery swapping technology will drastically cut down the initial purchase cost of the vehicle. Once the battery cost is shifted from capital cost to running cost, EVs will be highly affordable in India. 

To accelerate EV adoption in India, battery swapping technology is the most efficient solution as it will omit the time taken to charge the integrated EV battery. 

Ecogears take:

Though this policy is one of the biggest news to date for the Indian EV community, it might be a nightmare for some companies who have already started the mass-scale production of integrated battery EVs after R&D. Now the major thing to look out for is how the EV giants like Ola electric, with integrated batteries, are going to cope up with the upcoming change in technology.

Content strategist at Ecogears
Interested in the electric vehicle domain, web development, and native app development, Seema is currently pursuining her post-graduation.
Sima Sharma

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