Motorcycle battery swapping industry status
The rise of two-wheeler battery swapping business model comes from the pain points of safety risks and charging difficulty of electric bicycles. The huge stock market and rapidly growing incremental market make the battery swapping business full of imagination. In different application fields of two-wheelers, the penetration rate of battery swapping service varies greatly.
Among them, B-end scenarios such as motorcycle sharing and food delivery have high requirements for operational efficiency, and the supporting lithium-ion batteries have a relatively high degree of standardization and strong adaptability, and the corresponding battery swapping service penetration rate is significantly higher than that of individual users. Affected by factors such as the incomplete power swap network and inadequate follow-up services, the current power swap penetration rate is only about 25%.
C-end users use the motorcycles less frequently than B-end users. In addition, they have not yet formed the consumption habit of battery swapping. The current penetration rate of battery swapping is only about 4%.
In the B-end market, in 2021, the demand for B-end riders’ battery swap cabinets in China’s two-wheeler battery swapping market will reach 280,000, and it is expected that the demand will reach 810,000 by 2025. As for the C-end market, in 2025, the demand for individual user battery swapping cabinets demand will reach 7.5 million.
Battery swapping market scale:
Mainly composed of battery market scale, battery swap cabinet market scale, and battery swap service fee market scale. At present, the two-wheeler swap market is still in the early stages of development, and the market scale is small. In 2020, China’s two-wheeler swap market scale was about 16.18 billion RMB. It is expected that with the increase in the penetration rate of battery swapping services and the growth of battery swapping user groups, the market scale of China’s two-wheeler battery swapping business model is expected to exceed 100 billion in 2025, becoming a new “blue ocean market”.
Thresholds and barriers of the power swap industry
(1) Manufacturers that take the lead in the competition in the electric two-wheeler battery swapping industry have a first-mover advantage
From the perspective of the difficulty of acquiring customers, the companies that take the lead in the deployment have a higher market share and a larger number of users. High-quality battery swapping services can solve the pain points of charging safety and battery life for users, and users will carry out spontaneous publicity to form user fission, which means it is relatively less difficult for top companies to acquire customers.
From the perspective of scale effect, when users choose a battery replacement operator, they will tend to choose a service provider with more and denser outlets in the local area. When battery swapping is needed, it is easier to find a battery swap station. The number of outlets deployed by the leading manufacturers is larger, which can provide users with more convenient battery swapping services and has scale advantages.
From the perspective of asset investment, the electric two-wheeler battery replacement industry needs to invest a large amount of batteries and motorcycle battery replacement cabinets first. The initial asset investment is large and requires strong financial strength. The development time of the first-mover companies is longer and the capital reserves are stronger, and the capabilities of expansion and anti-risk are also better.
From the perspective of user experience, since lithium batteries are crucial to the riding experience of riders, whether they can provide users with a better battery replacement experience is the key to retaining users. With longer development time of the battery swapping service, the company will have a deeper understanding of the pain points of users, and more experience in battery scheduling and maintenance.
(2) The development of electric two-wheeler battery replacement industry is more intelligent and refined
In the electric two-wheeler battery swapping industry, only a small number of battery swapping operators are able to maturely apply advanced technologies such as big data and AI. In the future, with the deeper integration of advanced intelligent technology and industrialized manufacturing, the electric two-wheeler battery swapping industry will usher in a more intelligent and refined development.
Barriers to the battery swapping industry
The core of battery swapping for electric two-wheelers is to solve problems such as charging safety and convenience. The safety of lithium batteries is affected by many factors such as material characteristics, technical solutions, PACK technology, and usage methods, and the safety problems have attracted much attention. However, due to factors such as limited volume of lithium batteries for electric two-wheelers and high requirements for cost control, lithium batteries safety management is facing considerable technical challenges.
Battery swapping service operators need to have mature battery safety management technologies, mainly involving professional technologies such as intelligent hardware technology, safety anomaly detection technology, and lithium battery big data analysis. The main users of electric two-wheeler battery swapping are instant deliverers who use lithium batteries frequently with complex use scenarios, and high timeliness. So the service efficiency is crucial. Battery swapping service operators need to continuously invest in research and development of energy consumption management technology, intelligent operation and maintenance big data technology, etc., and continuously optimize the battery swapping system to achieve digital and refined management.
(1) Talents barriers
Product R&D, design, production and manufacturing, landing resources of grid replacement sites, and asset operation capabilities are important factors affecting the development of new entrants in the industry, and these largely depend on the talents building of the team. The implementation of battery swapping station requires battery swapping operators to have an experienced expansion team and have local landing resources. In terms of asset operation, manufacturers need professionals with big data and algorithm backgrounds and offline teams with rich operation and maintenance experience.
(2) Technical barriers
Delivery riders have high frequency of battery swapping, and high requirements for battery life and stability, and the usage environment is relatively complex, including high temperature, vibration, wading, etc., which are easy to damage lithium batteries. Therefore, real-time collection of battery working data, accurate judgment, timely warning, and rapid processing becomes the key to solve the pain points of the industry, to improve battery life, usage safety and charging convenience. Therefore, there are high technical barriers in the industry.
(2) Management barriers
In the electric two-wheeler battery swapping industry, the battery swapping equipment (battery swap cabinets and lithium batteries) are distributed in a wide range of locations and scenarios. Scattered operating equipment increases the difficulty of company management. The management, operation and maintenance of operating equipment and battery scheduling determine the profitability of battery swapping operator assets. In addition, the battery swapping service industry chain is long and the technology span is large, which requires high iteration capabilities of comprehensive technology management of the companies. Therefore, the electric two-wheeler battery swapping industry has relatively high management barriers.
(3) Capital scale barriers
Delivery riders have high requirements for the convenience of battery swapping, so they tend to choose battery swapping operators with a denser number of local swapping grid points. The battery swapping industry needs to invest a lot of battery swapping equipment and lay more battery swapping points. The initial capital investment is relatively large, and the requirements for the financial strength of battery swapping operators are relatively high.
TYCORUN battery swapping business model
Market prospect of two-wheeler battery swapping
● The number of electric two-wheeler in the world is large.
● The demand for electric two-wheeler will continue to grow in the future, based on the trends of electrification, carbon reduction, oil to electricity and policy promotion.
● With the rapid development of instant distribution industry, there is a large demand for charging the electric two-wheeler and the charging frequency is high.
● Battery swapping mode can almost completely solve the pain points of electric two-wheeler: charging safety, charging efficiency and battery cost, etc.
● Battery swapping stations are clearly superior to charging stations: they reduce costs, increase efficiency, and have high commercial value
The economic effect of battery swapping business model is obvious
Comparing the cost of oil motorcycle and electric motorcycle in Vietnam area:
The 5-year combined cost of buying a 50cc gasoline motorcycle is 20 million + fuel cost 70 million + maintenance cost 10.5 million = VND 100.5 million. The 5-year combined cost of buying a two-wheeled electric vehicle is 17 million + charging cost 2.65 million +battery replacement cost 3.85 million = VND 23.5 million. Average annual savings of VND 15.4 million.
The average salary of enterprise employees in Vietnam in 2021 is 7.84 million VND/month. Choosing a two-wheeled electric vehicle will save about two months ‘salary for a Vietnamese family every year, which has strong economic benefits.
User groups and agent operators for two-wheeler battery swapping
User groups of two-wheeler battery swapping
Entry point for timely delivery market
● Users use electric two-wheeler as productivity tools at a high frequency and require at least two batteries a day
● Users have high requirements for battery life, stability and battery performance
● Users have high requirements for charging efficiency and convenience
● Users are more sensitive to price and cost
● The user’s living environment is generally poor, and is inconvenient to charge batteries.
Market consensus
Battery swapping mode is the best mode of power supply for two-wheelers in timely delivery market
Type of agent operators
● Motorcycle brand
● Car rental company
● Battery company
● Investors with government resources
● Express company
● Delivery company
Charging mode
● B to C user: Pay a deposit, deduct the charge by month, time and electricity
● B to B merchants: Free installation, battery swapping revenue sharing
● B to B agent: Purchase equipment, battery swapping revenue sharing
Battery swapping business mode
● Direct marketing mode: The hardware and software such as site, cabinet, battery are invested and operated by the company itself.
● Franchise mode: Find the franchisee, purchase cabinets, batteries and other hardware and software, and the revenue is shared by the company and the franchisee according to a certain proportion.
Profit model for battery swapping
● Mode 1: Users buy a battery to become a member, and a fee will be charged for every time they swapping battery
● Mode 2: Users pay a certain amount of deposit and buy a monthly package to become a member
The profit model can also be designed according to the actual situation, and to develop and set up the related battery swapping software functions
Two-wheeler battery swapping business mathematical model
Based on years of experience in the battery swapping industry and the summary of successful battery swapping cases, Tycorun energy has established a complete and practical battery swapping direct business mathematical model. Through this model, the project feasibility analysis can be conducted based on hardware investment, maintenance funds, rental income, local average monthly salary and various expenses to calculate the fund recovery cycle.
Deposit: Generally 1/6 of the local monthly income
Rent: Generally 5% of the local monthly income
Contents of the TYCORUN battery swapping business model solution
According to the past experience in the implementation and promotion of the battery swapping business model, tycorun has summarized a mature battery swapping business model and profit mathematical model. Customized battery swapping solutions can be provided according to the actual situation of customers’ commercial projects, application solutions, local market conditions, customers’ specific needs and the situation of various partners. In order to ensure that the battery swapping business model can actually operate and has good profitability and long-term development strength, TYCORUN can help you establish an independent battery swapping brand and lead the local battery swapping market.
Battery swapping cabinet:
● Intelligent cabinet control system, three-level protection and safe charging
● Multi-voltage, multi-specification, soft plug/hard plug can be selected
● Multi-protocol support
● Customizable production and development on demand
● Interconnect with the platform for intelligent management and monitoring
● Add communication module
Battery swapping batteries:
● Professional power lithium battery pack manufacturers, using well-known brand grade A battery cell
● Interconnect with the battery swapping platform for intelligent management and monitoring
● Various specifications
● Dedicated BMS R & D with mature battery safety management technology
● Designed specifically for battery swapping application scenarios, durable and safe
● Add communication modules and GPS modules
● Report the battery status to the battery swapping platform in real time
● Customizable production
Battery swapping platform:
● Interconnect with the battery swapping cabinets, batteries, and motorcycles for intelligent cloud management and monitoring
● Independently developed two core software: front-end user APP+ cloud management platform, which has been put into actual operation
● Support multi-language board and regional payment interface
● Add communication modules and GPS modules
● Customizable production
Motorcycles:
● Interconnect with the battery swapping cabinets, batteries, and platforms for intelligent cloud management and monitoring
● Strategic cooperation with many well-known motorcycle brands
● Various specifications
● Add communication modules
● Support multi-protocol
● Adapt to the battery swapping battery
After-sales service:
● Provide the training for battery production and battery swapping product knowledge
● Engineers can be sent to install the equipment locally
● Provide the training for maintenance team
● Software remote upgrade
Technical support Service:
● Provide technology transfer, plant design services
● Provide production and test equipment procurement
● Customized product design
● Provide semi-finished products
● Provide production technology training
TYCORUN battery swapping case
battery swapping model – a battery swapping case of delivery rider in Pakistan
For motorcycle costs:
Assuming the cost of an electric motorcycle is Rs 300,000, the battery cost is about 50% or Rs 1,50,000.
Using battery swapping stations, riders pay only half the cost of an electric motorcycle, which is Rs 1,50,000, and can be financed through banks.
Monthly instalments can be deducted directly from the rider’s salary by the Courier company and paid to the bank or the rider can pay directly to the bank.
For battery rental:
The rider will pay a nominal battery rent, which will be paid each time the battery is charged/replaced.
The battery rental fee will be nominal for battery insurance costs.
For charging fees:
The 72v30AH lithium battery will consume about 2.2 KWH of electricity at Rs 50 per KWH or Rs 110 per charge and can travel 80-90 km.
The cost of petrol for a trip of 80-90 km is about Rs 450.00
The estimated battery swapping cost is Rs 250.00, saving 45% of fuel for riders and couriers.
Also, there are no engine tuning, oil or overhaul costs required for gasoline motorcycles.
For annual savings:
Riders are limited to 3 litres of fuel per day or 900 litres per year. At Rs 285 per litre, the annual fuel cost is Rs 256,500.
Save 45%→ Save Rs 115,425 per year
Annual savings of Rs 461.7 million (461.7 million) for the entire fleet of 4,000 motorcycles
Advantages of the TYCORUN battery swapping business model
Compared with other battery swapping brands and manufacturers in the battery swapping industry, the unique advantage of TYCORUN battery swapping business model is that
● Strong applicability, the car, battery, cabinet, system can be individually adapted according to customer needs (different from gogoro, adopt the car-electric binding mode)
● Provides a full range of product customization services, technology transfer and factory design services to help customers establish their own battery swapping brand and occupy the local battery swapping market
● TYCORUN has independently developed battery swapping software, mastered the core technology of battery swapping products, and has field operation experience of several orders
● The only manufacturer in the world that can provide a complete battery swapping business model (solution + cabinet + battery + platform + motorcycle)
● Experienced in the industry and has insight into the industry situation and relevant policies of various countries
● Has successfully implemented battery swapping business model in countries around the world and can accurately understand and realize customer needs
Large orders: battery swapping business model localization operations are capitalized projects, only the strength enterprises can participate in the landing, the equipment and platform of the whole solution are procured at more than 10 million US dollars
Industry-wide integration capability: As a battery swapping platform company of the whole industrial chain, TYCORUN has the integration capability to provide comprehensive solutions in the field of battery swapping for two wheelers and three wheelers. By integrating technology r&d, manufacturing, supply chain management and operational services, TYCORUN has achieved seamless connection from product design to marketing. This industry-wide integration capability enables TYCORUN to provide customers with a one-stop battery swapping solution.
Rich industry experience: TYCORUN has rich industry experience in the field of battery swapping for two wheelers. We understands market needs and trends and are able to accurately grasp industry dynamics, and provides solutions that meet customer needs. Through 3 years of practical experience, TYCORUN has accumulated valuable industry insight and expertise to respond quickly to market changes and continue to innovate.
Partnerships: TYCORUN focuses on working with a variety of partners, including suppliers, sales channels, industry associations, etc. By working closely with its partners, TYCORUN is able to jointly develop new market opportunities, share resources and information, and achieve mutual benefit. This partnership provides strong support and a broad platform for our battery swapping business model to expand.
Internet promotion ability: TYCORUN company uses Internet promotion ability to enhance product exposure and visibility through major search engines and online platforms. TYCORUN is good at using SEO technology, online advertising and social media and other channels, and is able to rank high in the keyword search of battery swap related products worldwide. This allows TYCORUN to attract more potential customers and expand its global market share.
TYCORUN battery swapping product advantages
Battery swapping cabinet: 5/8/9/12 ports; Soft plug/hard plug; Support parallel
Motorcycle swapping Battery products:
● Multi-voltage, multi-specification: 48/60/72v; 30/50/60ah
● Soft plug/hard plug
● Accept bulk customization
Specifications, size, appearance, function, logo and other aspects can be customized according to customer needs
Advantages of TYCORUN power battery pack – using Tesla process
In the motorcycle battery swapping PACK, TYCORUN uses the same aluminum wire welding process and glue filling and heat conduction technology as Tesla.
Core product features of Tycorun electric motorcycle battery pack with aluminum wire welding process:
● We firstly made the same direction of convergence, and filled the bottom of the battery cell and the aluminum shell with glue for heat conducting, achieving a breakthrough in thermal management of similar products in the industry;
● Co-directional aluminum wire bonding and welding process, high production efficiency, high reliability, good consistency, welding with zero lost;
● Each cell is connected by aluminum wire bonding welding process, with fuse function, multiple protection, safe and reliable;
● The surface of the battery cells is filled with glue that is highly effective on isolating heat and flame. The glue is surrounded to the cells to prevent thermal runaway;
