The government of India, in a bid to promote the adoption of an electric vehicle, is also rolling out various initiatives to enable accessible and affordable charging stations.
Do you know that electric vehicles will form 7% of the new car sales in India by 2030? India is currently heading towards an electrifying future. Environment pollution is increasing day by day, and the transportation sector is one of the major contributors to CO2 emissions. There is an onus to combat climate change by building sustainable smart cities and the government of India has taken the first step towards it in the Union Budget 2019.
In an endeavour to push for electric mobility, the government has lowered the GST rate on Electric vehicles to 5 per cent from 12 per cent and has made EVs affordable for consumers with additional income -tax deduction. The centre has also proposed to set up electric vehicle (EV) charging stations in large cities, state capitals and smart cities.
India to become the next big EV market
The Electric vehicle industry has a promising future in India. The government is focusing on EVs as it holds tremendous potential, not only because it is environment-friendly, but also because India can emerge as a hub of manufacturing which will generate employment and growth opportunities.
At present, there are 3.97 lakhs EVs ply on the India roads. Low average vehicle prices will inhibit EV uptake for the next 10 years with increased affordability, as well as the government’s efforts to ensure universal access to electricity.
As per statistics, Sales of electric vehicles will increase from 1.1 Million worldwide last year to 11 Million in 2025, and then surging to 30 Million in 2030. The government has also mandated that all new three-wheelers sold in the country should be fully electric starting from April 1, 2023, and two-wheelers below 150 cc engine, from April 1, 2025.
With a green light from the Indian Government, the surge of electric cars is inevitable. Despite the higher cost of Electric cars, people are saving a lot on fuel. But petrol prices have increased by more than 50% in the last few years, making the operational cost of fuel cars expensive. Electric cars are in higher range but the excess investment in buying an electric car can be easily recovered within a couple of years of fuel-saving.
Increasing EVs Will Surge the Demand of charging stations
Charging infrastructure will play a pivotal role in EV deployment. A survey highlighted that the market share of electric cars in India was only 0.06%, compared to about 2% in China and around 39% in Norway.
The government of India have undertaken multiple initiatives to promote EV manufacturing and adoption of electric vehicles in India. Due to that, electric vehicles have started penetrating in the Indian market.
However, one of the major reasons behind the lower adoption of EVs is the limited availability of charging infrastructure. It also noted that the long-time taken for completely charging EVs was another hindrance to popularising the vehicles.
Till date, most EV owners have been charging from their homes or offices. However, as the adoption goes up, there will be a requirement of public charging infrastructure.
Experts opine that if the government target of seven million electric vehicles by 2020 is to be achieved, then the ecosystem such as battery-charging points needs to be in place.
Initially, there would be a total of 1,000 charging stations with a minimum of 6,000 chargers. Moreover, the charging stations have been encouraged to draw power from grid-connected solar PV projects. This is providing a huge opportunity for entrepreneurs who want to venture into this emerging EV market.
EV charging station franchises
With increasing EV, the demand for charging stations is going to reach the pinnacle. While earlier, the charging stations were majorly dominated by the government-run companies such as EESL or major industry players such as TATA Power, but now the tables have turned.
Realising the huge opportunity this sector beholds, various players are venturing into it with electric vehicle charging station franchises.
The government of India, in a bid to promote the adoption of an electric vehicle, is also rolling out various initiatives to enable accessible and affordable charging stations. The centre has allowed that setting up public charging stations shall be de-licensed and any individual is free to set up public charging stations.
Brands such as Panasonic have already come forward with their franchising model of EV charging stations and various other brands are also expected to enter into the industry soon enough.