Vitol invests in India’s electric mobility firm SUN Mobility
Vitol has invested USD50 million in SUN Mobility to facilitate its expansion across its core market of India and further afield, including markets where Vitol has a presence. With the investment from Vitol, SUN Mobility said “we plan to expand our footprint to all major cities. We plan to install 500 SWAP Points in India by the end of 2022.”
SUN Mobility has developed a cost effective and durable solution for the electrification of fleet and livelihood vehicles, such as three-wheeler, two-wheelers, taxis and cargo vehicles, in India and other emerging markets. Its battery swapping system allows for a lower total cost of ownership relative to the combustion engine and fixed battery alternatives. Importantly, its solution is not reliant on grid infrastructure, public fast charging availability or access to dedicated parking. Sun Mobility’s solution is lower cost and more durable than competing systems, making it attractive to a price-sensitive customer base and allowing it to operate in harsh conditions. It has successfully deployed its offering across 15 cities in its core market India and will look to expand into other fast-growing markets and sectors, including last-mile delivery in OECD markets.
Significant potential for SUN Mobility’s business model
“With over 160 million two and three-wheeler vehicles in India, SUN Mobility’s model has significant potential. Electrifying the largest portion of India’s vehicle fleet through a flexible and cost-effective offering has the potential to reduce urban pollution. We look forward to working with SUN Mobility as they expand their footprint and deploy their compelling offering into other similar markets with the help of Vitol’s global downstream footprint,” said Andrew de Pass, head of Renewables, Vitol Inc.
SUN Mobility, with headquarters in Bengaluru, Karnataka, India, is a joint venture between Maini Group and SUN Group, co-founded by Chetan Maini, founder of India’s first electric car, Reva, and Uday Khemka, vice chairman of SUN Group.
Based in Geneva, Switzerland, Vitol is an energy and commodities company. Its primary business is the trading and distribution of energy products globally. It trades more than seven million barrels per day of crude oil and products and, at any time, and has 250 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including: about 18 million cubic meters of storage across seven continents, 480,000 barrels per day of refining capacity and 5,000 service stations across Africa, Australia, Eurasia and in Northwest Europe.