Exhibit 1: Battery charging
vs. swapping: Value chains
Why battery infrastructure matters
Battery infrastructure, including both charging
and swapping, is one of the fastest-growing segments in India’s electric
mobility ecosystem. Currently valued at ~US$ 0.3B in FY24, the segment
is projected to expand to ~US$ 10B by FY30, driven by multiple
reinforcing tailwinds (Exhibit 2).
EV penetration in the two-wheeler (2W) and
three-wheeler (3W) segments is expected to cross 40% by FY30, providing
a strong demand foundation for battery infrastructure. Government incentives
like fiscal subsidies and regulatory support are driving infrastructure
rollout. Innovations in fast-charging technology, such as Ather Grid, are
reducing vehicle downtime and improving the charging experience. Meanwhile, the
growth of hyperlocal commerce and shared mobility models is fuelling
demand for fast turnaround energy models like battery swapping.
Exhibit 2: Battery charging
vs. swapping: Market size
Charging is the most common model among B2C users, particularly for personal vehicles with access to home or workplace charging. It offers ease of overnight charging and expanding access through public networks.
Swapping, on the other hand, is gaining ground in B2B applications, especially ride- hailing and e- commerce fleets, where speed, asset utilisation and predictable operating costs are essential.
Exhibit 3: Adoption patterns in charging and swapping models
What drives or limits these models
The rapid rise in EV adoption, driven by
supportive government policies, is fuelling the growth of both battery charging
and swapping models, each with distinct advantages and structural challenges.
Battery charging is often favoured for it's convenience. While public charging infrastructure remains limited, it is expanding steadily due to initiatives like the Faster Adoption and Manufacturing of (Hybrid & Electroc Vehicles) FAME scheme and industry driven efforts such as fleet parternships and community charging stations. However, key headwinds include slow charging speeds, charger compatibility issues, and grid reliability concerns
Battery swapping in contrast is gaining momentum in high- utilisation commercial segments such as hyperlocal deliveries, where speed and operational efficiency are critical. Despite it's promise, the model faces challenges including high capital investment for battery inventory, lack of standardisation across OEMs, battery performance decline in extreme conditions and gaps in skilled skilled labour and supporting backend infrastructure.
As highlighted in Exhibit 4, both models are
evolving in parallel, driven by different needs and contexts, and the future
likely lies in a hybrid approach.
Exhibit 4: Battery charging
vs. swapping: Tailwinds and headwinds
Where does each model fit best?
The battery infrastructure landscape in India
will not be shaped by a one-size-fits-all model. Instead, the optimal solution
depends on the vehicle type, operating conditions, and energy profile.
Swapping is better suited for 2Ws and 3Ws (including cargo), which typically have lower range needs, lighter batteries and operate in moderately fixed routes. These vehicles benefit most from the speed and operational efficiency of swapping. Charging remains the more viable solution for 4Ws, long distance buses, and LCVs, where heavier batteries, longer driving cycles and fixed infrastructure support longer range uses.
This segment-level differentiation is outlined
in Exhibit 5, which maps the relative suitability of each model by vehicle
category.
Exhibit 5: Battery charging vs. swapping: Vehicle
segment suitability
Conclusion
India’s EV
infrastructure strategy will not be built around a single solution. Charging
and swapping are complementary, not competing, models—each tailored to
specific mobility formats and operational needs.
As
the battery infrastructure market scales toward ~US$ 10B by FY30,
stakeholders must align their strategies with the model that best fits their
user base. For private EV owners and long-range travellers, charging remains
essential. For commercial fleets and high-utilisation segments, swapping
provides a flexible, scalable alternative.
Ultimately,
the future of EVs in India will be shaped not only by how vehicles are built or
sold, but by how they are powered.
For
a deeper dive, check out our report – Electrify30: The Future of Mobility