Gogoro postpones India expansion plans, launches bike-taxi pilot with Rapido
What's the story
Taiwanese electric two-wheeler manufacturer, Gogoro, has decided to postpone its ambitious expansion plans in India.
The delay is due to the Indian government's yet-to-be-launched scheme for battery swapping.
Despite this setback, Gogoro has initiated a bike-taxi pilot project with Rapido, a ride-hailing service provider in the country.
This move aims to test their vehicles before they hit the market on a larger scale.
Government incentives
Government's incentive schemes awaited
Gogoro's CEO, Horace Luke, stated that the company is awaiting the finalization of incentive schemes from the Indian government.
This step is crucial for boosting its vehicle sales and battery pack production in India.
"We had forecasted revenue from India for 2024, but due to the delay in implementation in subsidies to include battery swapping vehicles, most of it is now projected for 2025," Luke explained during a recent earnings call.
Collaboration
Collaboration with Indian ministry for FAME 3
Gogoro is collaborating with the Indian Ministry of Heavy Industries, to ensure that the upcoming iteration of the government's Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME 3) scheme includes benefits for battery-swapping vehicles and infrastructure.
This collaboration aims to replicate the benefits previously extended to charging electric vehicles (EVs) under FAME 2, which had a budgetary allocation of ₹10,000 crore for EV subsidies in India.
Market optimism
EV maker remains optimistic about Indian market
Despite the delay in its expansion plans, Gogoro remains optimistic about the Indian market.
"We are still operating at a loss and still investing for growth because we believe the markets that we are targeting. India, Southeast Asia, and other markets are ripe for electric vehicle disruption," Luke stated during the earnings call.
The company has already launched a battery-swapping network and three smart scooters in India as part of its initial expansion efforts.
Pilot project
Gogoro and Rapido launch bike-taxi pilot project
Gogoro has also launched a pilot program with Rapido. The details of this collaboration have not been fully disclosed yet.
However, Rapido's co-founder and CEO, Aravind Sanka, told TechCrunch that the pilot is currently operational in New Delhi with plans to deploy around 1,000 Gogoro vehicles.
The success of this pilot will determine future expansion plans for both companies.