Range Anxiety Making Two- and Three-Wheeler Battery Swapping Services Popular

Around the world, governments are promoting electric vehicles (EVs) because of the increasing level of air pollution and growing problem of road congestion in major urban areas. In this regard, not only have stringent emission reduction targets been imposed on conventional gasoline and diesel vehicles, but the manufacturers and buyers of EVs are being offered financial incentives, such as subsidies, tax rebates, and registration fee concessions. For instance, the Californian government offered a 10% federal tax credit in 2017 on the purchase of electric motorcycles costing up to $2,500.

Here lies the problem; while numerous such noble gestures to encourage the usage of EVs have been made around the world, the installation of charging stations hasn’t picked up that much pace. And, without an adequate charging infrastructure, EVs are as good as junk. As per P&S Intelligence, this factor is set to prove instrumental in the growth of the EV battery swapping market for two- and three-wheeler in the coming decade. 

Further, in whichever places charging stations do exist in substantial numbers, most are AC slow chargers, which can take 6–12 hours to fully charge an EV battery. This becomes a problem for two- and three-wheelers, as such automobiles, especially those used for shared mobility services, must be operational round the clock, for the service provider to make enough money. Grounding the automobile for half a day would lead to massive revenue losses, thereby making EVs more expensive than conventional vehicles, operationally, in the long run.

Request to Get the Sample Report: https://www.psmarketresearch.com/market-analysis/ev-battery-swapping-two-three-wheeler-market/report-sample

Thus, seeing the proliferation of electric two- and three-wheelers and the range anxiety associated with them, which is partly because of the lack of DC fast chargers, several small, local garages and auto service firms have started offering battery swapping services. Such services are offered via the subscription and pay-per-use models, of which subscription-based services are more popular, because they offer low cost per swapped battery. 

Another advantage of this model is the flexibility of leasing the battery, which allows people to purchase the EV without the battery, which accounts for 30–40% purchase cost of an electric two- and three-wheeler. Moreover, the number of companies offering shared mobility services is increasing around the world. For instance, 50 companies offer electric scooter sharing services in an equal number of European cities. France had 2,560 and Italy had 1,225 sharable electric scooters in 2019. Such scooters must make numerous trips every day, which is why subscribing to battery swapping services reduces the operational costs for companies.

Presently, more lithium-ion (Li-ion) batteries are swapped than sealed lead–acid (SLA) batteries, simply because most of the two-wheelers around the world have Li-ion batteries. In 2019, 65%,97%,and 92% of total EVs sold in Asia-Pacific (APAC), Europe, and North America, respectively, had Li-ion batteries. These batteries are not only less toxic to the environment when disposed of, but they also boast a higher energy density, which results in a longer driving range for the same amount of charge as an SLA battery.

APAC has been the largest EV battery swapping market for two- and three-wheeler till now by a huge margin. India and China account for the highest sales of such EVs in the world, while Taiwan is the only country to have successfully commercialized the battery swapping model for these automobiles. Moreover, countries in the region are also promoting the integration of the battery swapping technology in EVs. For instance, China will not offer any incentives for EVs priced above $42,362.7 (RMB 300,000) unless they have a swappable battery.

Make Enquiry Before Buying the Report: https://www.psmarketresearch.com/send-enquiry?enquiry-url=ev-battery-swapping-two-three-wheeler-market

Therefore, with the persisting range anxiety with EVs, which must be adopted on a massive scale to clean up the environment, the battery swapping technology, especially for electric two- and three-wheelers, is garnering widespread interest around the world.