Unprecedented Growth in EV Charging Stations
New Delhi – August 08, 2024: India’s electric vehicle (EV) infrastructure market is booming, experiencing a significant surge in the number of Battery Electric Vehicle (BEV) charging stations. According to the latest report by Forvis Mazars, the total number of public BEV charging stations increased dramatically from 1,800 in February 2022 to 16,347 in March 2024. This nearly ninefold growth reflects the country’s commitment to expanding its EV infrastructure, driven by a combination of environmental concerns, rising fuel prices, and strong government incentives.
Rohit Chaturvedi, Partner and leader in the Transport and Logistics sector at Forvis Mazars in India, emphasized the importance of scaling up public charging infrastructure to meet the growing demand and reduce range anxiety. “By 2030, electric vehicles are projected to make up almost one-third of India’s passenger vehicle market. This highlights the significant infrastructure requirements needed. At Forvis Mazars in India, we are committed to supporting this transformative journey, leveraging our expertise to help build a sustainable and efficient EV ecosystem in India,” he stated.
Surge in EV Sales and Infrastructure Expansion
Global EV sales surged by 27% from 2022 to 2023, reaching 13.09 million vehicles, underscoring the critical need for a robust charging infrastructure. In India, EV sales tripled last fiscal year, particularly in the two-wheeler (2W) and three-wheeler (3W) segments, with the four-wheeler (4W) segment also showing significant promise. Key drivers of this growth include a lower total cost of ownership, ease of use, sustainable choices, a growing supplier network, product customization, and government incentives such as the FAME-II scheme.
Tailored Charging Infrastructure Development
India’s charging infrastructure needs are unique, given the dominance of 2Ws and 3Ws, which primarily utilize AC slow charging and battery swapping. In contrast, 4Ws and buses require a mix of AC and DC charging solutions. Private 2W and 4W owners are expected to rely heavily on home and workplace charging, while commercial fleets will depend on private depots or public charging networks. As the 4W EV stock increases, DC fast chargers will cater to the growing demand for public charging.
Market Potential and Government Policies
By 2030, India is projected to have around 50 million EVs on its roads, with a market size expected to reach $48.6 billion. To achieve a ratio of one charger per 40 EVs, India will need to install over 400,000 chargers annually, totaling 1.32 million chargers by 2030. The FAME scheme provides substantial incentives for EV adoption and infrastructure growth, with the Ministry of Heavy Industries approving 2,877 EV charging stations across multiple states and 1,576 stations on highways and expressways.
The Ministry of Housing and Urban Affairs (MOHUA) targets semi-public charging at 20% of all vehicle holding capacity, with additional power load requirements for premises. These initiatives, along with strategic partnerships and innovations in the charging infrastructure sector, are crucial for meeting the country’s ambitious EV targets.
Strategic Partnerships and Innovations
For charger manufacturers, competitive pricing, quality, and value-added services like remote monitoring are essential. Charging point operators (CPOs) need to focus on developing a dense network at strategic locations through partnerships, ensuring interoperability, and enhancing customer experience through value-added services.
India’s EV push is supported by policies such as 100% FDI for EV assembly, the PLI scheme for ACC battery manufacturing, and measures like stamp duty reimbursement under FAME-II to localize the EV supply chain. Collaboration among oil marketing companies, utilities, and strategic partnerships by charging infrastructure providers is pivotal for creating a comprehensive charging network.
India is on track to become one of the world’s major EV markets by 2030, with the market anticipated to expand at an average annual rate of 49% between 2021 and 2030. Achieving a 30% share in electric vehicle sales will require installing 1.3 million public chargers, highlighting significant infrastructure requirements by 2030.
Forvis Mazars in India, a leading audit, tax, and advisory services firm, remains dedicated to aiding this growth through expert advisory services, ensuring India can meet its ambitious EV targets and support a sustainable future.