SUN Mobility Ramps Up R&D & Infrastructure; Targets HEV Market Leadership
SUN Mobility is expected to emerge as the market leaders in the upcoming 5 years, says Ashok Agarwal, CEO - HEV, SUN Mobility
Battery swapping infrastructure developer, SUN Mobility is spearheading a transformative shift in India’s electric mobility sector by leveraging its battery-swapping technology for heavy electric vehicles (HEVs) such as buses and trucks. By addressing key barriers like high upfront costs, operational inefficiencies, and range concerns, the company is driving the adoption of sustainable, affordable transport solutions. Ashok Agarwal, CEO - HEV of SUN Mobility spoke to Utkarsh Agarwal, Editorial Lead of BW Auto World about the company's plans and how SUN Mobility is poised to revolutionise the EV market with modular, scalable battery-swapping stations and innovative financing models.
Read the excerpts below:
Q. What are the key challenges in scaling up the production and deployment of battery-swappable buses, and how is SUN Mobility addressing these obstacles to ensure widespread adoption?
A key challenge in producing and deploying electric buses is the high upfront cost. SUN Mobility is addressing this challenge by lowering cost of ownership as battery-swappable buses cost 40-50 per cent less than fixed battery model vehicles. We will also ramp up our modular, scalable robotic battery swapping stations in target markets to accelerate the transition to electric mobility. By deploying flexible, modular battery-swapping stations, SUN Mobility enables quicker scalability and reduces the capital expenditure needed to build a comprehensive network.
Q. How significant a contributor do you expect the new battery-swapping technology to be to SUN Mobility’s overall revenue in the next 3 to 5 years? What proportion of your business do you see transitioning to this new technology?
Battery-swapping technology is emerging as a transformative opportunity in the electrification of buses and trucks, with potential benefits that could redefine the heavy electric vehicle (HEV) market. The approach minimises downtime and bolsters productivity by roughly 30 per cent, while mitigating battery obsolescence and easing concerns related to battery performance and vehicle range.
A key advantage of battery swapping is its impact on affordability. Given that batteries account for nearly 40 per cent of an EV’s total cost, removing this component from the initial purchase significantly lowers the upfront expense. This affordability could prove crucial for fleet operators, as reduced entry costs make EVs a more viable alternative to conventional diesel-powered vehicles and fixed-charging EV options, paving the way for clean and green transportation. Given the prominence of battery swapping in HEVs, this segment will occupy a major share of SUN Mobility’s overall revenue.
Over the next 18 to 24 months, we will focus on implementing a range of use cases to demonstrate the versatility of its robotic swapping systems, targeting a large addressable market. Once we establish our effectiveness of technology, we expect to transition to a lease model, aiming to further reduce adoption barriers and accelerate the deployment of HEVs across multiple industries.
Q. How do you plan to structure your revenue model around this technology? Will it primarily be based on selling the buses and battery systems, or are you focusing on subscription-based or service-based models for fleet operators?
As per current practice, bus/trucks without battery will be sold by the OEMs. These will be integrated with SUN Mobility’s swappable batteries. Our approach is OEM-agnostic, ensuring our customers have access to the latest battery technology. Currently, we follow the EaaS (Energy as a Service) model, where customers can sign a long-term contract of 10-12 years with SUN Mobility for energy services based on a minimum guaranteed mileage per month. This model offers flexibility and affordability, aligning costs with actual usage. We have positively engaged with over 30 Indian and Global OEMs covering both trucks and buses.
Q. With the recent launch of this technology, do you have any plans for significant investments in manufacturing capacity or infrastructure to support its scaling, such as building additional battery-swapping stations or enhancing your R&D capabilities?
SUN Mobility is dedicated to driving innovation and advancing R&D, as demonstrated by our extensive global portfolio of over 100 Intellectual Property (IP) products, including 35 that specifically focus on Battery Management Systems. Our battery-swapping technology is among the most advanced solutions in the world, designed to deliver efficiency and reliability. To scale this technology further, we are significantly expanding our R&D investments to refine our offerings and pursue continuous enhancements. Our R&D team is set to grow further to support our ambitions. In addition to R&D, we are strategically investing in infrastructure and manufacturing capacity, including plans to establish more battery-swapping stations.
Q. What is your pricing strategy for the new battery-swappable buses? How do you ensure that the cost savings from battery swapping are passed on to fleet owners, while also making sure your business remains profitable?
The pricing strategy varies based on the number of vehicles in the fleet and daily operational kilometres. Based on the use-cases of the customers, we develop total cost of ownership (TCO) models in discussion with the consumers. The TCO of swappable buses are ~20-30 per cent cheaper than diesel and ~10-15 per cent cheaper than fixed battery buses. We ensure that this much of savings is accrued to the fleet operators. This gives a cost advantage to the consumers. The optimum placement of the swap stations and proper utilisation of the batteries ensures that the business remains profitable for SUN Mobility as well.
Q. The rapid battery-swapping process takes less than three minutes. How do you ensure such efficiency, and what challenges did you face while developing this quick turnaround time for fleet operators?
Our battery-swapping process is designed to be convenient, quick and seamless with the actual swap taking about two minutes. Factoring in vehicle entry and exit at the swapping station, the entire process typically completes in under five minutes. This efficiency is comparable to a traditional refueling experience, providing fleet operators with minimal downtime and maximum convenience.
Achieving such faster swapping was not without challenges. We focused heavily on ensuring compatibility across different vehicle types, and fine-tuning our station designs for smooth flow and rapid service. Our commitment to R&D and continuous improvement has been key in overcoming these challenges and delivering a reliable, swift swapping experience that meets the demands of fleet operators.
Q. You mentioned a potential 20 per cent reduction in operational costs. Could you elaborate on how fleet operators can achieve these savings, and how the technology helps in reducing maintenance costs and improving uptime?
Compared to ICE counterparts, the tank-to-wheel efficiency of EVs are much higher. Further, the cost of fuel, which is electricity in EVs, is lower than diesel. These two combined provide an improvement in operational costs. Further, with battery swapping, the smaller battery size and higher efficiency provides cost savings as compared to fixed battery system. These cost savings are passed on to the customer by the energy operator.
Additionally, SUN Mobility’s battery-swapping system helps reduce maintenance costs by minimising wear and tear on individual vehicle batteries. The batteries are liquid cooled on the vehicle side and during charging as well in the swap stations, which improves the battery life. Further, the batteries are charged in a controlled environment to further improve battery life. Technology also supports optimised fleet management by allowing operators to strategically deploy vehicles based on closed loop operations, focusing on high-utilisation use-cases like cement, ports, mining, metal or mofussil routes for buses to reduce inefficiencies.
Q. Where do you see SUN Mobility in the next 5 years in terms of market share and overall revenue? Will you continue focusing primarily on heavy electric vehicles, or do you have plans to expand into other areas like passenger electric vehicles or electric charging infrastructure?
SUN Mobility is expected to emerge as the market leaders in the upcoming 5 years. The focus will continue to be on HEVs as despite the small share in the overall transport sector (~5 per cent) they consume the majority energy share from the transport sector and also the emissions. Thus, the electrification of this segment will ensure two-fold benefits in terms of energy security and also emission reduction. As of now, there are no plans for passenger electric vehicles (cars) or charging infrastructure.
