Targeting Last-Mile Delivery for Accelerated EV Adoption
Reliance New Energy is preparing to enter the battery-swapping market with a specific focus on the logistics and last-mile delivery sectors in India. By focusing on commercial fleets, Reliance hopes to address the primary barriers to electric vehicle (EV) adoption: high upfront vehicle costs and battery charging downtime. Under this battery-as-a-service (BaaS) model, logistics operators can separate the purchase of the vehicle chassis from the battery pack, effectively halving the retail price of electric two-wheelers and three-wheelers and significantly boosting operational margins.
The company has already secured Automotive Research Association of India (ARAI) certification for four of its modular battery variants and three distinct two-wheeler platforms. Reliance is currently executing internal trials utilizing its own extensive retail and logistics fleets to test reliability and performance. Following this internal testing phase, pilot projects will launch in select metropolitan areas, with a broader commercial rollout planned by the end of the 2027 fiscal year (FY27).
Gigafactory Backing and Synergies with Jio-bp
At the recent 49th Annual General Meeting, Reliance confirmed that the first phase of its 40 GWh battery cell gigafactory is on track to be commissioned later this year. The company plans to scale this capacity threefold to reach 120 GWh of annual capacity, focusing primarily on lithium iron phosphate (LFP) chemistry. This massive manufacturing capacity will support the battery-swapping venture, while Jio-bp—the joint venture between Reliance and bp—will serve as the distribution network, utilizing its extensive network of EV charging stations and swapping hubs across the country.
