Gogoro, the Taiwanese electric two-wheeler manufacturer, has announced a delay in its plans for India due to the country’s failure to launch a battery swapping scheme. The company’s co-founder and CEO, Horace Luke, stated during the Q2 earnings call that Gogoro is waiting for the Indian government to finalize incentive schemes before ramping up sales and battery pack production in the country. The delay has resulted in the projection of revenue from India being pushed back from 2024 to 2025.
Luke emphasized that Gogoro is working with the Indian heavy industries ministry to ensure that the government’s Faster Adoption and Manufacturing of (Hybrid & Electric Vehicles) (FAME 3) scheme will offer the same benefits to battery-swapping vehicles and infrastructure as it does to charging electric vehicles. The company believes that India, along with Southeast Asia and other markets, is ripe for electric vehicle disruption and remains optimistic about its potential.
Despite the setback, Gogoro is actively pursuing opportunities in India. It has launched a pilot program with ride-hailing startup Rapido, testing its vehicles before their commercial release. The pilot program is currently live in New Delhi, with plans to have around 1,000 Gogoro vehicles. The success of the pilot will determine further expansion.
Gogoro has been making strategic moves in India, including partnering with Indian automobile giant Hero MotoCorp and investing $1.5 billion in Maharashtra. The company is also collaborating with five Indian local electric two-wheeler OEMs and has started testing their solutions for deployment. These collaborations aim to bring a wider range of vehicle options at lower price points to B2B customers in India.
In terms of financial performance, Gogoro experienced over 6,500 backlog orders for its Pulse and JEGO vehicles in Q2, valued at $12.3 million. However, the company noted that the Taiwanese two-wheeler market is softer and that “strong sales” of its JEGO vehicles put pressure on the average sales price.
Overall, Gogoro’s delay in its Indian expansion plans is a setback, but the company remains hopeful about the potential of the Indian market. It is actively collaborating with local partners and conducting pilot programs to ensure a successful entry into the market. With its innovative battery-swapping technology and strategic partnerships, Gogoro aims to disrupt the electric vehicle market in India and beyond.