Introduction Of Gogoro

Taiwanese electric two-wheeler manufacturer, Gogoro, has temporarily shelved its ambitious expansion plans for India due to ongoing policy uncertainties. The company had been eagerly awaiting the rollout of a government-backed scheme for battery swapping, but delays have prompted a strategic pause. In the meantime, Gogoro has launched a bike-taxi pilot program in collaboration with the ride-hailing aggregator Rapido to test its vehicles in the Indian market.

Policy Roadblocks Stall Expansion

It co-founder and CEO, Horace Luke, highlighted the issue during the company’s Q2 earnings call, where he expressed frustration over the delay in the Indian government’s incentive schemes for battery swapping vehicles. “We had forecasted revenue from India for 2024, but due to the delay in implementation of subsidies, most of it is now projected for 2025,” Luke stated. The company had anticipated leveraging these subsidies to scale its vehicle sales and battery pack production in India, but with the policy still in limbo, those plans are on hold.

Luke emphasized that It is actively engaging with India’s Ministry of Heavy Industries to ensure that the forthcoming iteration of the government’s Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME 3) scheme includes provisions for battery-swapping vehicles and infrastructure. The previous FAME 2 scheme, launched in 2019, had allocated $1.19 billion to subsidize EV purchases in India. However, with FAME 2 expiring earlier this year, the industry is keenly awaiting the next phase.

Pivot to Pilot Programs

Despite the policy hurdles, It remains optimistic about its prospects in India, a market it considers ripe for electric vehicle disruption. To maintain momentum, the company has initiated a pilot program with Rapido, deploying a fleet of It electric scooters for bike-taxi services in New Delhi. Although details of the pilot are still under wraps, Rapido’s co-founder and CEO, Aravind Sanka, confirmed that the program is already operational, with plans to expand the fleet to approximately 1,000 vehicles depending on its success.

Strategic Partnerships and Investments

Gogoro’s interest in India is not new. The company has been eyeing the market since 2021 when it partnered with Indian automotive giant Hero MotoCorp. Last year, Gogoro invested $1.5 billion in Maharashtra and supported EV fleet management startup Zypp Electric in a $25 million funding round. These investments are part of Gogoro’s broader strategy to establish a foothold in India’s burgeoning electric vehicle market.

The company is also collaborating with five local electric two-wheeler original equipment manufacturers (OEMs) in India, according to Luke. These partnerships aim to introduce a variety of products at lower price points, targeting B2B customers. Vehicle testing for these “powered by Gogoro” solutions is already underway, signaling a significant step forward in the company’s expansion plans.

Looking Ahead

While Gogoro’s home market in Taiwan has shown signs of stagnation, with Q2 backlog orders for its Pulse and JEGO vehicles reaching over 6,500 units valued at $12.3 million, the company remains committed to its growth strategy in India and Southeast Asia. Luke has previously mentioned that Gogoro has invested “tens of millions” of dollars in India and is prepared to increase that investment as market conditions stabilize.

In conclusion, while Gogoro’s immediate plans in India may be delayed, the company’s long-term vision remains intact. By pivoting to pilot programs and deepening local partnerships, Gogoro is positioning itself to capitalize on India’s electric vehicle market once the policy landscape becomes more favorable.

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