Honda subsidiary, HPCL join forces for setting up BaaS in India
Honda Power Pack Energy India Private Limited, Honda Motor Co., Ltd.'s new subsidiary for battery sharing service, and Hindustan Petroleum Corporation Limited (HPCL) have announced that they have signed a Memorandum of Understanding (MoU) and commercial agreement to collaborate in the field of E-mobility and provide battery sharing services in HPCL's retail outlets in major cities across India.
This marks the global debut of Honda's battery-sharing service with HPCL as an ideal partner.
In October 2021, Honda Motor Co., Ltd. Japan had announced its plan to begin battery sharing service in India starting with electric three-wheelers through its newly established subsidiary, Honda Power Pack Energy India.
Honda's battery sharing service will enable rickshaw drivers to stop by at the nearest battery swapping stations being set up across the selected cities and swap discharged batteries with fully charged ones. The use of this service will significantly reduce drivers' initial cost to purchase EVs as well as reduce concern about running out of batteries. This will reduce the risk of drivers losing business opportunities while waiting for batteries to be charged, the company said in a press release.
The company plans to start its Battery as a Service (BaaS) business on a commercial basis in Bengaluru in the first half of 2022 and expand to other major cities in phases. Honda will set up a network of battery swap stations at strategic locations like HPCL's retail outlets.
In the beginning, the focus will be on the three-wheeler segment and would ultimately expand to two-wheelers as well. For this purpose, Honda has been developing its ties with multiple OEMs in various applications, the company added.
President and CMD, Honda Power Pack Energy India, Kiyoshi Ito, stated that he is looking forward to a lasting partnership and friendship between Honda and HPCL to bring a reliable and customer-centric battery sharing service in India and to ensure a greener future. Referring to the association of Honda with HPCL, he added that for Honda, it was a case of meeting the right partner at the right time.