A report “Setting Up EV Charging Stations in India: Evaluating Top Locations/Clusters in India, Best Fit Business Model and Services” published by market research company “Research and Markets” provide comprehensive view of possible business opportunity to invest in EV charging infrastructure in India.
The potential investors in electric vehicle charging business opportunities in India are in a fix, this as they are unsure of whether to put charging stations upfront or wait for critical mass of EVs before investing any money.
It’s a classic chicken and egg situation, however, if one takes a closer look into how the Chinese handled this conundrum, one would realize that the initial thrust came in form creation of public electric vehicle charging stations funded by the government and later came the private investment into the charging infrastructure creation.
Currently, there are only 150 charging stations in India and anticipating the need, Government of India has set up an ambitious target of setting up one charging station every three km in cities and every 25 km on both sides of highways. The government has de-licensed public charging stations business for electric vehicles enabling individuals to extend such facilities but at a regulated tariff.
Companies like ABB, Acme Industries, Fortum India and a few Dutch firms are actively considering setting up vehicle charging stations. State-run companies like NTPC, GAIL India, Indian Oil Corp, and Power Grid Corp have been exploring diversification into electric vehicle charging infrastructure business.
Most of the auto industry has been complaining about the lack of charging support directly discouraging their interest in switching vehicles to electric. There are reportedly 60,000 petrol pumps across the country and more expected to be added and if the infrastructure is used, one doesn’t need to acquire more land space to set up the electric vehicle charging stations and make better use of the available area.
Japanese electronics company Panasonic has planned to set up around one lakh charging station for e-vehicles across 25 top Indian cities. The Japanese company is planning to set up these stations by 2024. These charging stations are expected to power over a million vehicles. The company has planned charging stations across top cities like Delhi, Pune, Bengaluru, Chennai, Amravati, Hyderabad, Gurgaon, Noida, and Ghaziabad, etc. The charging facilities will be set up at petrol pumps, malls, parking lots, etc.
At both the Central Government level and State Government level, policy changes are being implemented to pave for accelerated charging infrastructure capacity creation. The state of Uttar Pradesh has become the first in India to formally invite EoIs from companies to set up electric vehicle charging stations. This is the first proposal after the Union Power Ministry issued guidelines over setting up of such EV charging stations in December 2018 to promote the use of battery-electric auto-rickshaws.