The journey of an Indian entrepreneur who pioneered electric vehicles in the country and continues to shape the future of sustainable transportation through innovative battery-swapping technology.
10 Dec 2024 | 3678 Views | By Shahkar Abidi and Ketan Thakkar
In 1990, two key figures in India's EV story – strangers to each other – found themselves at the same event, a solar car race organised by General Motors in the US. The race was won by a car designed by the University of Michigan named Sun Runner. Among the ...
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In 1990, two key figures in India's EV story – strangers to each other – found themselves at the same event, a solar car race organised by General Motors in the US. The race was won by a car designed by the University of Michigan named Sun Runner. Among the university's team members was an Indian student, Chetan Maini. Observing the race on behalf of General Motors was another Indian, Pawan Goenka. Goenka would later join Mahindra & Mahindra (M&M) and serve as its Managing Director and CEO.
By 1993, Goenka had joined M&M, and Maini had returned to India, determined to pioneer electric vehicles after completing his studies. In 2001, Maini introduced the Reva, a compact, two-seater electric car designed for Indian roads. Over the next decade, the Reva carved a niche, selling approximately 5,000 units and reaching markets in 24 countries. Recognising the potential of EV technology, M&M acquired a majority stake in the Reva Electric Vehicle Company in 2010. Under Mahindra's stewardship, the Reva brand launched the Mahindra e2o, followed by the e-Verito saloon and the eSupro, a pick-up van.
The transition, however, was not without turbulence. After Mahindra's acquisition, General Motors withdrew from a planned collaboration with the Mumbai-based automaker to produce an electric version of its small car, the Spark. Moreover, Reva's UK-based importer ceased placing orders, citing new regulatory hurdles. By 2016, the company was rebranded as Mahindra Electric Mobility, signalling a renewed focus on advanced powertrains and integrated mobility solutions, and is today known as Mahindra Last Mile Mobility.
Rise of SUN Mobility
A few years after Reva's acquisition by Mahindra & Mahindra, Maini found himself reflecting on the next opportunity: What could create a more significant impact? As months progressed, it became clear to him that while many companies focused on creating individual products, a more profound opportunity lay in enabling the broader ecosystem—helping OEMs and businesses accelerate the transition to green mobility on a large scale.
During those days, Maini would often ask himself a crucial question: What if a customer could buy a vehicle that was not only cheaper but had a lower cost-per-kilometre, without worrying about infrastructure or fuel costs? That led him to focus on two- and three-wheelers, which constitute 80% of the Indian market. Additionally, buses and lorries, which constitute only 3-4%
of the market, account for nearly half of the emissions and energy consumption. Tackling these segments using EV technologies promised the highest impact.
However, the challenges were glaringly apparent: high upfront costs, range anxiety due to limited charging infrastructure, and long refuelling times. These problems weren't new—they existed 15 years ago and were still around when he started brainstorming in 2016. Addressing these fundamental barriers became the cornerstone of his mission.
Maini spent the year focusing on core technologies and innovative business models. By then, he had already filed most of his 35 global patents, setting the foundation for his next venture. In 2017, Maini's vision had a name—SUN Mobility, which was founded on a 50:50 joint venture basis with Uday Khemka, promoter of SUN Group.
"We were just two employees when we started the company. So it was a real startup again," Maini told Autocar Professional, sitting in his Bengaluru-based office. Having built a company in his late 20s, it felt different – doing it again in his late 40s, he said.
SUN Mobility's solution revolved around battery swapping—a technology that wasn't new but required the right business model and partnerships to unlock its full potential. Further, by leveraging insights from his previous experience as an OEM, Maini's new venture, while standardising batteries, introduced an intermediate layer of software and hardware customisation, thereby serving diverse needs across OEMs without altering the core battery design. This flexibility allowed SUN Mobility to provide a modular solution for scooters, rickshaws, autos, and other vehicles, covering nearly 80% of India's mobility market.
Maini claims that its business model shifts the burden of battery ownership away from the customer. Instead of worrying about depreciation and replacement costs, customers experience consistent performance improvements. For example, one of its customers in Chandigarh, after driving over 200,000 kilometres, benefited from a 40% battery performance upgrade without replacing the vehicle—a testament to the value of its "battery-as-a-service" approach. This contrasts sharply with others' experience using a fixed battery, where performance deteriorated by 20-30% over the same period, necessitating replacement after a few years—sometimes at a cost of up to 50-60% of the vehicle's price.
This approach replicates the pay-as-you-go model of traditional fuels: you use what you need and pay accordingly. Users benefit from continuous upgrades, akin to getting 'premium fuel at regular prices'.
EVs: Global trends and India's position
Chetan Maini takes a comprehensive view of the electric vehicle (EV) market. In China, EVs have achieved market dominance, with combined sales of EVs and plug-in hybrids accounting for over half of all vehicle sales. China has achieved in seven to eight months what took the United States fifteen years to build in terms of EV infrastructure, demonstrating how affordability and consumer acceptance can drive market transformation. The lesson is clear: mass adoption requires both the right ecosystem and strategic pricing.
India's EV market continues to grow despite challenges such as delays in subsidy programmes and new battery regulations. Some segments show particularly strong adoption; electric scooters, for example, have reached adoption rates of 30-40% in cities like Bengaluru. With increasing product diversity and broader geographic reach, India's EV market shows potential for exponential growth, particularly in two- and three-wheelers. Maini projects near-complete electrification of three-wheelers by 2030, along with 40-70% adoption in two-wheelers. He expects passenger car adoption to follow as battery prices decrease and premium vehicle demand rises.
"If you look at the number one market in the world (China), it makes more electrics than all of the vehicles in the number two market (US). The US sells around 10 million vehicles a year, whereas China produces 10 million electrics," Maini remarked on the potential growth prospects.
"So, in the bigger picture, the industry has sort of positively grown in India. It is positively growing in China. It has grown in other markets, but not at the rate that was anticipated," he continued while showing his optimism about the potential growth of EVs.
Despite the emergence of hybrid vehicles creating some market confusion, the government remains committed to an all-electric future. Maini considers this approach both logical and strategic as it reduces oil dependency and increases energy efficiency. While critics, often representing vested interests, cite energy constraints and material imports as obstacles, the data presents a different perspective. India's renewable energy targets, aiming for 575 GW by 2030, can adequately support widespread EV adoption.
Maini argues that concerns about raw material dependency, particularly regarding lithium, are exaggerated. The import costs for EV materials—including lithium and copper—represent a one-time investment, substantially lower than the ongoing expense of fossil fuel consumption in conventional vehicles. Additionally, battery recycling and swapping models will help reduce long-term resource demands, making the EV transition both viable and essential.
Strategic partnership with Indian Oil
SUN Mobility, which integrates technology, energy, and infrastructure solutions, plans to increase its total investment to approximately $1 billion over three years.
This investment plan is supported by SUN Mobility's recent formation of a 50:50 joint venture with Indian Oil in June. The partnership will provide Battery-as-a-Service (BaaS) solutions for two-, three-, and four-wheelers weighing less than two tonnes. Indian Oil, the country's largest Oil & Gas company, has invested $78 million in equity and committed an additional $220 million, totalling approximately Rs 1,800 crore over three years. The partnership aims to establish one of India's largest battery-swapping infrastructure networks by 2030, with plans for over 10,000 stations across more than forty cities within three years, facilitating over a million battery swaps. This network will leverage Indian Oil's extensive infrastructure of more than 37,000 fuel stations nationwide.
The joint venture was established specifically to develop infrastructure for rapid vehicle electrification. It operates independently from SUN Mobility, which maintains its focus on technology development. Under this structure, SUN Mobility develops technologies and platforms, while the joint venture handles infrastructure deployment and scaling. As part of the agreement, SUN Mobility is transferring its charging stations, batteries, and related assets to the joint venture, representing its contribution alongside future investments.
Currently, SUN Mobility employs 500 people, with 175 dedicated to engineering—highlighting its strong technological focus. The company operates 630 stations across 20 cities, facilitating 60,000 battery swaps daily.
Profitability dynamics
Regarding the joint venture's profitability timeline, Maini expresses measured optimism: "We've set ourselves even shorter timelines." However, he acknowledges that achieving profitability involves complex factors inherent to their business model.
To illustrate SUN Mobility's revenue trajectory, Maini uses the example of a three-wheeler customer. While monthly revenues begin modestly, the seven-year cumulative earnings significantly exceed traditional product-based businesses. This advantage stems from their business model: each vehicle generates three times the revenue compared to a standard sale, fundamentally transforming mobility economics.
SUN Mobility's financial performance reflects its growth phase. In FY23, the company reported revenues of Rs 253.76 crore with a net loss of Rs 44.01 crore—a significant increase from previous years. For comparison, FY22 saw revenues of Rs 60.56 crore and losses of Rs 18.77 crore, while FY21 recorded revenues of Rs 39.04 crore and losses of Rs 15.52 crore.
Maini explains that current losses primarily result from depreciation costs related to infrastructure investments, which are typically recorded before revenue streams mature—particularly during the initial months of establishing battery-swapping stations. Encouragingly, many stations already generate positive gross margins, with EBITDA profitability expected within 12 to 18 months.
As the company scales aggressively, Maini projects full profitability within three years. Yet, he underscores that this ambition hinges on stabilising growth rates—a delicate balancing act for a company redefining the contours of sustainable mobility.
Looking beyond new EVs
While EV adoption continues to grow, SUN Mobility's vision extends beyond new electric vehicles. The company currently partners with 55 fleet providers and has expanded into retrofitting existing vehicles. Through strategic partnerships, they now offer ARAI-certified retrofitting kits for two- and three-wheelers. "We anticipate the retrofit market becoming substantial over the next five years, alongside new vehicles," Maini explained.
Although SUN Mobility doesn't partner directly with OEMs, it collaborates with companies specialising in powertrain systems. These powertrains integrate with SUN Mobility's batteries to create cost-effective solutions. The financial benefits are compelling: retrofitting existing vehicles offers a return on investment within 18 to 24 months, primarily through fuel cost savings. Customers pay only for battery usage, reducing the barriers to transitioning from internal combustion engines (ICE) to electric.
The cost advantage is significant. Retrofitting a three-wheeler costs approximately Rs 75,000, compared to Rs 3.2 lakh for a new electric three-wheeler including subsidies. This pricing structure gives customers flexibility: they can either invest in a new vehicle or convert their existing one. The retrofitting option, with its quicker financial returns, has gained particular traction in the scooter and three-wheeler segments. SUN Mobility is now extending this service to four-wheelers.
Retrofitted vehicles match new EVs in longevity, lasting seven to eight years. The main limitations come from mechanical components such as suspension, bearings, and general wear and tear, rather than the powertrain, which can function effectively for 10 to 15 years. The retrofitting process addresses these mechanical issues by replacing tyres, shock absorbers, and bearings, while eliminating problems associated with ageing ICE engines, including increased emissions, higher maintenance costs, and reduced fuel efficiency.
The retrofitting solution also helps fleet operators in cities like Delhi meet stricter EV adoption requirements. It provides a cost-effective alternative to full fleet replacement, with better financing options and faster returns on investment. Additionally, retrofitting supports sustainability goals by reducing the demand for new resources. "This approach optimises resource utilisation," Maini notes.
The benefits of retrofitting extend to existing electric vehicles as well. Fleet-operated fixed-battery electric vehicles often experience significant battery degradation within two years. Battery-swapping solutions offer an effective remedy for this issue.
Global expansion and future plans
SUN Mobility maintains a careful balance between meeting current operational needs and pursuing growth objectives. For two- and three-wheelers, the company's vision extends internationally, with pilot programmes underway in the Philippines, Africa, and South America.
"Fortunately, a lot of these markets are India-like. A lot of these markets have Indian OEMs," Maini notes. "From that thought process, it's always been global right from day one. But make India successful because India is the largest micro mobility market. And if you're successful here, you probably could be successful anywhere," he added.
In the domestic market, SUN Mobility is strategically entering the electric heavy commercial vehicle segment. The company begins by targeting closed-loop systems along specific corridors, laying the groundwork for broader expansion.
For example, SUN Mobility collaborates with OEMs and operators to deploy initial fleets of 50 vehicles on routes such as Bangalore-Mysore or Delhi-Jaipur. This approach ensures predictable demand before investing in infrastructure. These systems are designed to eventually interconnect, creating a comprehensive nationwide network. The company particularly focuses on high-traffic routes like India's Golden Quadrilateral, where the potential for efficiency and scale is greatest.
Industry challenges and policy needs
The EV segment in India, particularly the battery-swapping segment, has faced many headwinds. One reason is the lack of a level playing field vis-à-vis fixed battery options. When asked if battery swapping needs government support, Maini's response was nuanced.
What it really needs is a level playing field, he pointed out. Currently, a customer buying an electric three-wheeler has two options—one with a fixed battery and one with a swappable battery. Both offer identical performance, but only the fixed-battery version is eligible for subsidy. The swappable model receives no subsidy at all, creating an unfair disadvantage.
The discrepancy is further compounded by taxation. Batteries purchased separately are taxed at 18%, while vehicles are taxed at only 5%. Additionally, swapping services are also taxed at 18%. This means that auto drivers using swapping solutions bear a much heavier tax burden compared to those who purchase fixed batteries.
Infrastructure support presents another significant challenge. While charging infrastructure receives government subsidies, swapping infrastructure does not receive similar support. For example, if a refuelling station includes both charging and swapping facilities, only the charging station receives financial support, even when the swapping station operates at higher utilisation rates. This disparity undermines the potential for multiple technology solutions to coexist in the ecosystem.
Standardisation
On the debate around specification standardisation, Maini notes that the government initially pushed for uniform battery specifications. However, several valid concerns emerged. Different vehicles—from low-power scooters with 800-watt motors to high-power scooters with 5-6 kilowatt powertrains—require different battery solutions. A single standardised battery cannot accommodate such diverse needs. Additionally, Tier-1 and Tier-2 markets have different requirements. The consensus has shifted toward allowing multiple standards to coexist, which fosters innovation and caters to diverse customer needs.
OEMs have raised important liability concerns about standardisation. For instance, if a certified battery from one operator is used in another station and causes an issue, the question of accountability becomes complex. Moreover, since batteries can account for 40% of a vehicle's cost, theft or misuse poses a significant risk. Consequently, the industry prefers to certify specific batteries for their vehicles to ensure safety and reliability.
Rather than implementing strict standardisation, the focus should be on certifying stations and batteries to meet safety and performance standards. This approach maintains room for innovation while ensuring consumer safety. Beyond these measures, Maini concluded that facilitating financing, simplifying regulatory procedures, and implementing other supportive measures can accelerate adoption.