The electric scooter manufacturer from Taiwan, Gogoro, has postponed its expansion strategy in India due to the delay in the launch of a much-anticipated battery swapping policy by the Indian government, according to a statement from a company official. Concurrently, Gogoro has initiated a trial run of its bike-taxi service in collaboration with the aggregation platform Rapido, to evaluate its vehicles in real-world conditions before their official launch.
The absence of finalized incentive plans from the Indian authorities has left Gogoro with no option but to hold off on increasing its sales and production of battery packs in the nation, stated Gogoro’s co-founder and CEO Horace Luke during the firm’s second-quarter earnings call this past Thursday.
“Our 2024 revenue forecasts for India had to be pushed to 2025 due to the delay in rolling out subsidies that would cover battery swapping vehicles,” disclosed the company executive to investors.
Luke emphasized the company’s effort in working alongside India’s Ministry of Heavy Industries to make sure the forthcoming FAME 3 scheme aligns in benefitting battery-swapping vehicles just as its predecessors did for charging electric vehicles.
The Indian government expanded its FAME 2 scheme in 2019 with a budget of $1.19 billion to support electric vehicle (EV) purchases, which was further enhanced to more than $13 billion in February of the current year, although it concluded on March 31.
Despite the stall in its initial strategies, Gogoro remains optimistic about the Indian market, viewing it as a significant growth opportunity due to the saturation in its local market. In an effort to kickstart its market penetration, Gogoro rolled out its battery-swapping network along with three smart scooter models in India last December.
“We are steadfast in absorbing operational losses and continue to invest in growth, convinced that the markets we target—including India and Southeast Asia—are on the brink of an electric vehicle revolution,” shared Luke during the financial briefing.
The partnership with Rapido ride-hailing service has entered the pilot phase, disclosed a company official, without providing extensive details.
Rapido’s co-founder and CEO, Aravind Sanka, confirmed the operational status of the pilot in New Delhi, aiming to incorporate approximately 1,000 Gogoro vehicles, with the future scale-up depending on the pilot’s outcome.
Gogoro has been eyeing the Indian market for expansion since 2021 through a collaboration with Hero MotoCorp, India’s automotive giant. The company announced a $1.5 billion investment in Maharashtra last year and supported the electric fleet management startup Zypp Electric with a $25 million funding round to explore operational viability in India.
On the earnings discourse, Luke elaborated on Gogoro’s active collaboration with five Indian electric two-wheeler manufacturers, marking the initiation of vehicle testing powered by Gogoro network solutions in the country.
“These partnerships are expected to introduce a diverse product range at more affordable price points. The commencement of these tests is a promising step towards expanding our footprint and offering a broader array of vehicle choices to our B2B customers in India,” Luke elaborated.
In a previous discussion with TechCrunch, Luke revealed the company’s high investment in India amounting to “tens of millions” of dollars with plans for continued investment.
In the second quarter, Gogoro noted more than 6,500 backlog orders for its Pulse and JEGO scooters, amounting to a value of $12.3 million. Despite this, the company’s 2024 outlook indicated a softer Taiwanese two-wheeler market, with “strong sales” of its JEGO model influencing the average selling price.
Compiled by Techarena.au.
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