Indian Oil Corp and Sun Mobility Form Battery Swapping JV in Indias

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Synopsis:

Indian Oil Corporation and Singapore’s Sun Mobility, form a 50:50 joint venture for battery swapping in India, with an initial paid-up capital of ₹2 lakh, to be contributed equally. The battery swapping will be for small-format electric vehicles (SFEV).

IOCL News Today

Indian Oil Corporation (IOCL) announced a 50:50 joint venture (JV) with Sun Mobility, Singapore, aimed at establishing a battery-swapping business in India. The JV will cater to the growing market for two-wheeler, three-wheeler, and four-wheeler electric vehicles (EVs) with a gross vehicle weight under two tonnes, termed Small Format Electric Vehicles (SFEVs).

Explore: INDIAN OIL CORP LTD

Joint Venture Details

The newly formed JV will focus on deploying and operating Battery-as-a-Service (BAAS) solutions for SFEVs. This initiative includes retrofitting vehicles to convert them to electric using docks and batteries, facilitating their functionality over a network of swap points. These swap points will also encompass Indian Oil retail outlets, enhancing accessibility for EV users.

Capital and Equity Structure

The JV will start with an initial paid-up share capital of ₹2 lakh, comprising 20,000 equity shares, each with a face value of ₹10. Both, IOCL and Sun Mobility will contribute equally to this capital, reflecting their equal stake in the venture.

Additional Read: What is IOC in the Share Market?

Rationale Behind the Move

IOCL highlighted the rapid growth in the EV market, particularly in the two-wheeler and three-wheeler segments in India. Battery swapping technology is anticipated to become a significant method for energy dispensing in EVs, offering a quicker and more convenient solution compared to traditional charging methods.

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