SUN Mobility aims for $1 bn investment to lead HEV expansion, doubling battery swaps

Jyoti Banthia Updated - August 29, 2024 at 10:18 PM.
 Ashok Agarwal (left), CEO-HEV, SUN Mobility, and Chetan Maini, Co-founder and Chairman

SUN Mobility is looking at a $1 billion investment by 2030, primarily focused on the newly launched heavy electric vehicles (HEVs) business. This investment will also be expanded to its existing micromobility segment, said Chetan Maini, co-founder and chairman, SUN Mobility.

The company has launched its modular battery-swapping technology for HEVs in partnership with Bangalore-based, Veera Vahana.

The company’s smart battery solution is suitable for light, medium, and heavy trucks and buses, ranging from 3-tonne to 55-tonne Gross Vehicle Weight (GVW), noted Ashok Agarwal, CEO- HEV, SUN Mobility.

“The battery swapping could potentially reduce the upfront cost of buses by 40 per cent, making it comparable to traditional ICE buses,” said Agarwal.

“We have designed a robotic station which will swap battery in less than three minutes which we are showcasing for the 10.5 metre HEVs,” he added.

Further, it reduces operational costs of fleet operators by up to 20 per cent, while increasing uptime and higher utilisation of buses owing to the swift swapping process of under three minutes. The strategy involves aggregating demand and achieving a critical mass before rolling out corridors, with a focus on financing and leasing for buses.

Recently, the company announced it has just received $78 million investment from Indian Oil Corporation and has formed a 50:50 joint venture with IOC. Sun Mobility plans to use both the IOC network and outlets to cater to different segments of EVs.

Sun Mobility, he said, currently does 1.7 million battery swaps a month spread across 630 stations. “We would like to double that in the next six to eight months. We are looking at getting 1 million vehicles on our platform with 10,000 stations,” Maini added.

Talking about further fundraising, he said that the company will raise fresh capital to fund its expansion plans.

The company plans to replicate this structure internationally by partnering with large energy companies. It has started pilot projects in Africa, South America, and the Philippines.

Published on August 29, 2024 16:48

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