Ashok Leyland, Sun Mobility Form EV Venture in India

Truckmaker Ashok Leyland Ltd. has formed an alliance with Sun Mobility Pvt., promoter of a quick-exchange electric-car battery system, to develop electric buses and eventually electric light-duty commercial vehicles.

The two Indian companies say their $16 million partnership will introduce its first prototype early next year. Ashok Leyland will design and build the electric drivetrain, motor control system and vehicle.

Sun Mobility will provide support for the EVs through its “smart” battery system. The scheme will buy power from the grid and store it in EV battery packs. The batteries can then be swapped out for depleted batteries within minutes.

The approach decouples the hefty cost of an EV’s battery from the price of the vehicle itself. Sun Mobility is headed by Chetan Maini, who pioneered electric cars in India through his Reva Electric Car Co. (since acquired by Mahindra and Mahindra).

Maini notes that the battery accounts for 30%-50% of an EV’s cost. Sun Mobility’s pay-as-you-go approach enables owners to sidestep that cost by paying only for the energy their vehicles need.