Electric Mobility Industry Needs to Move Beyond Subsidies, Says Exponent Energy CEO

The Indian electric vehicle (EV) industry is at a crossroads, with a key player calling for a shift away from reliance on government subsidies. This article explores the evolving landscape of electric mobility in India.

• Subsidy Dependence: Arun Vinayak, CEO of Exponent Energy, a Lightspeed-backed electric vehicle charging startup, argues that the industry needs to move beyond easy government subsidies like FAME.

• Performance-Based Incentives: Vinayak proposes transitioning to performance-based and production-linked incentives that encourage efficiency and growth.

• FAME-II to Electric Mobility Promotion Scheme: The government has withdrawn subsidies under FAME-II and introduced the new Electric Mobility Promotion Scheme, 2024.

• Exponent Energy's Technology: Founded by ex-Ather Energy executives, Exponent Energy offers a proprietary fast-charging technology that promises a full charge in 15 minutes, exceeding most existing solutions.

• Standardization vs. Innovation: Vinayak advocates for interoperability in charging infrastructure but cautions against rigid standardization, which could stifle innovation.

• Exponent Energy's Expansion Plans: The company aims to install 100 charging stations in Delhi NCR and Bengaluru this year, with further expansion planned for Chennai, Ahmedabad, Kolkata, and Hyderabad. Additionally, they plan to enter the intercity e-bus segment in 2024.

• Financial Performance: In December 2023, Exponent Energy secured $26.4 million in funding, bringing their total funding to $44.4 million. They started product sales in February 2023 and aim for Rs 600 crore in revenue by 2025. Their current annualized revenue run rate is Rs 50 crore.

Exponent Energy's perspective highlights the need for a more sustainable approach to EV adoption in India. While subsidies have played a crucial role in initial growth, a shift towards performance-based incentives could foster long-term development and technological advancements. The success of Exponent Energy's fast-charging technology and their expansion plans will be closely monitored as they contribute to building a robust electric mobility ecosystem in India.