Over the past five years, the battery-swapping technology sector has raised an impressive $16,17,61,883 in funding underscoring the significant demand and potential within this sector.

It also positions India as a potential global leader in successfully implementing this technology on a large scale, states industry experts.

Notable startups

Some of the notable startups in the space include Battery Smart, SUN Mobility, RACEnergy, Echargeup, Esmito, Batterypool, Mooving, and more. In fact, recent years have witnessed increased investor interest in this space, with approximately $135 million raised since 2021 across 17 funding rounds, according to data from Tracxn.

Although battery-swapping technology is still in its early stages in India and has seen limited success beyond Taiwan, its potential for adoption in the Indian market, particularly for two- and three-wheelers, is optimistic.

Stakeholders believe the technology’s value proposition is strongest in solving problems for commercial vehicles in the micro-mobility segment.

With an estimated 3 million e-rickshaws and at least 2 million electric vehicles on the road, the battery-swapping market in India is estimated to be close to $2 billion and could potentially grow to around $17 billion, driven by rapid growth at a 60 to 65 percent compound annual growth rate (CAGR), said Pulkit Khurana, CEO and co-founder of Battery Smart.

Furthermore, with growing investor interest and government support, the sector is gaining momentum in India, attracting both domestic players and international industry giants such as Gogoro.

India, being the largest market for two-wheelers and three-wheelers in the micro-mobility segment, with 85 per cent of its population regularly using these vehicles, is poised to make a significant impact in the sector, explains Anant Badjatya, CEO of SUN Mobility.

That said, today the country has the opportunity to take what is being developed in India and replicate it in eastern and western markets, where a lot of the Indian OEMs are trying to establish a footprint. “So, instead of looking at where it has not been successful, we have the chance for India to make it big,” he added.

Experts believe that with the right infrastructure in place, swapping technology could contribute to a 30 to 40 percent growth in electric vehicles (EVs) in India, provided certain conditions are met, including government mandates, subsidies, interoperability and safety assurances, and battery-swapping roadmaps for different segments, from two- and three-wheelers to e-commercial fleets, as outlined in a report titled “Investor Perspectives on Accelerating Growth in the Indian EV Ecosystem.”

Additionally, Arun Sreyas Reddy, co-founder of RACE Energy, stressed that battery swapping is a concept relevant not only to India but also to the global market. He noted that it has the potential to reduce the import of lithium, a key raw material, to some extent while also addressing the issue of battery recycling.


Despite the growth, the sector faces many challenges. One of the notable challenges in this sector is its capital-intensive nature.

Industry estimates suggest that by 2027, 50 per cent of two- and three-wheelers will be electrified, increasing to 80 percent by 2030. “This transformation would require an investment of around $50 billion and the establishment of more than 50,000 battery-swapping stations,” noted Badjatya.

Similarly, Battery Smart, which has been operational for the past three years and currently operates in 25 cities, facilitates approximately 75,000 daily swaps. Besides setting up stations, a major investment challenge lies in the batteries themselves.

“For instance, to serve one lakh customers, a company would need to invest around $200 million in just assets. So, for a million customers, that translates to around $2 billion in investment,” Khurana added.