Gogoro, a Taiwanese electric two-wheeler maker, has announced a delay in its plans to expand into the Indian market due to the absence of an expected battery swapping incentive scheme from the Indian government. The company’s co-founder and CEO, Horace Luke, revealed during the Q2 earnings call that they are waiting for the finalization of incentive schemes before ramping up their vehicle sales and battery pack production in the country. Despite this setback, Gogoro has launched a bike-taxi pilot program with aggregator Rapido to test its vehicles before their commercial release.
Delays in India Expansion
Gogoro had originally forecasted revenue from India for 2024, but due to the delay in the implementation of subsidies for battery swapping vehicles, most of it is now projected for 2025. The company is working closely with the Indian heavy industries ministry to ensure that the expected iteration of the government’s Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME 3) will offer similar benefits to battery-swapping vehicles and infrastructure as it did to charging electric vehicles in the past.
In 2019, the Indian government introduced FAME 2 with a budgetary allocation of $1.19 billion to provide subsidies to EV buyers in the country. This scheme was later expanded to over $13 billion in February this year, though it lasted until March 31. Despite the delay in their original plans, Gogoro remains optimistic about the Indian market, which they see as ripe for electric vehicle disruption.
Pilot Program with Rapido
To further test the market before their full-scale launch, Gogoro has partnered with ride-hailing startup Rapido to launch a bike-taxi pilot program. The pilot is currently live in New Delhi, with plans to have around 1,000 Gogoro vehicles on the road. Depending on the success of the pilot, both companies will decide on its future expansion.
Rapido co-founder and CEO Aravind Sanka expressed confidence in the partnership, stating that Gogoro’s electric vehicles have the potential to revolutionize the bike-taxi industry in India. The collaboration between Gogoro and Rapido marks an important step towards introducing sustainable transportation solutions in the country.
Collaboration and Investment in India
Gogoro’s foray into the Indian market began in 2021 with a partnership with Indian automobile giant Hero MotoCorp. The company also made significant investments in Maharashtra and backed EV fleet management startup Zypp Electric to test operations in the country. Luke emphasized during the earnings call that Gogoro is actively collaborating with five Indian local electric two-wheeler OEMs to deploy their network solutions and offer a wider range of vehicle options to B2B customers in India.
These collaborations aim to bring a variety of products at lower price points to the Indian market, making electric vehicles more accessible to a larger audience. Gogoro’s commitment to expanding its presence in India demonstrates its confidence in the market’s potential for growth and innovation in the electric vehicle sector.
Gogoro’s investment in India has already shown promising results, with over 6,500 backlog orders for its Pulse and JEGO vehicles valued at $12.3 million in Q2. Despite facing challenges in the Taiwanese two-wheeler market, the company remains determined to drive sales and expand its market share in India and other Southeast Asian markets.
In conclusion, Gogoro’s decision to delay its India expansion may be a strategic move to ensure the success of its future endeavors in the country. By partnering with local stakeholders and testing their products through pilot programs, the company is laying the groundwork for a successful entry into the Indian market. As the demand for electric vehicles continues to grow globally, Gogoro’s innovative solutions could play a key role in shaping the future of sustainable transportation in India.
