Japanese auto major Honda Motor will start offering battery-swapping service to electric three-wheelers in Bengaluru by the end of June 2022, seeking to test the market in India’s tech capital before entering other cities and the two-wheeler segment with the service.
The company will begin with seven stations before scaling up to 50 over the next 18 months.
Honda did its proof-of-concept experiment in Mumbai, but has opted for Bengaluru to launch the service.
The auto major has already set up a subsidiary, Honda Power Pack Energy India, to roll out the business and has invested Rs 135 crore. The company will make continuous investment to step up the battery sharing network, Kiyoshi Ito, the subsidiary’s chairman and managing director.
The network expansion in the Bengaluru city will happen in a phased manner. The company hopes its battery-sharing service will accelerate the penetration of electric vehicles (EVs) as it will address the issues of range anxiety, cost of vehicle and waiting time for charging.
The Japanese multinational will initially look at the three-wheeler segment as e-autos are used for short-distance goods transport as well. The company thinks ecommerce and logistics will drive demand for e-autos.
Honda is working with multiple vehicle makers to help them integrate its India-made batteries into their vehicles, Ito said, declining to name them.