According to the International Energy Agency (IEA) report, the number of electrical vehicles (EVs) on the roads globally by the end of 2002 was 26 million. In the five-year period from 2017 to 2022, the sales of EVs increased tenfold to 10 million from 1 million.
The share of EV sales in the total car segment soared to 14% in 2022, up from 9% in 2021. By the end of 2022, seven million EVs had been occupying the world’s roads. By July 2024, approximately 30 million EVs were on the roads. And all of them need charging, leading to an exponential increase in opportunities in the EV charging market.
According to another study, revenues from the EV charging market are expected to touch US$ 115.66 billion by 2030, creating vast opportunities for individuals to invest in EV charging solutions.
According to Next Move Strategy Consulting, India’s EV charging market was valued at US$ 586.39 in 2023 and is expected to reach US$ 5,67 billion by 2030.
Introduction to EV Charging Business
People are embracing EVs for various reasons. The major factors driving their sales are awareness of eco-friendliness, advancements in technology, and cost savings.
However, there are various channels through which EV charging solutions can be provided, and various entrepreneurship opportunities are available for people wanting to plunge into this business.
These channels are charging networks, turnkey installations, service providers, and consultants. Entrepreneurs can set up charging networks and the physical infrastructure needed for EV charging to install and manage charging stations.
Others can opt to offer turnkey installations, i.e., comprehensive services, from setting up to making them ready for operations and charging stations, ensuring that they comply with procedural and monitoring requirements.
They can also be service providers who provide solutions to ensure EV charging stations are operated and maintained well by monitoring their utility and efficiency. Some consultants also offer strategic organizational and management services to businesses wanting to run EV charging stations.
For instance, EV charging solution providers, including ThunderPlus, a renowned EV charger provider In India, can operate in both the commercial and residential marketplaces seamlessly. Office complexes, standalone fuel stations, and retail outlets fall under the commercial market segment, while independent houses and apartment complexes fall under the residential market segment.
Market Overview of EV Charging in India
India’s EV charging market is being driven by petroleum public sector units (PSUs), such as Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), which are planning to establish 22,000 EV charging stations at their retail channels.
According to Mordor Intelligence, the Indian EV market was valued at INR 2,257,3 billion in 2024 and is expected to reach INR 10,100 billion by 2030. Of the present number of EVs running on Indian roads, over 89% are two-wheelers.
Most Affordable Nations to Charge an EV
The table below shows that India has the third cheapest electric vehicle charging rates in the world.
| Country | Cost per 100 km (in ₹) |
|---|---|
| Argentina | ₹113 |
| Malaysia | ₹157 |
| India | ₹231 |
| United Arab Emirates | ₹247 |
| Vietnam | ₹250 |
| China | ₹253 |
| Turkey | ₹278 |
| Indonesia | ₹306 |
| Mexico | ₹313 |
| Republic of Korea | ₹316 |
| Portugal | ₹500 |
| Finland | ₹774 |
| Czech Republic | ₹475 |
| Hungary | ₹501 |
| Poland | ₹579 |
| Spain | ₹614 |
| Ireland | ₹622 |
| France | ₹631 |
| Sweden | ₹666 |
| United Kingdom | ₹675 |
| Switzerland | ₹684 |
| Belgium | ₹727 |
| Denmark | ₹762 |
| Germany | ₹771 |
| Italy | ₹789 |
| Netherlands | ₹798 |
| Estonia | ₹867 |
| Slovenia | ₹1,474 |
| Norway | ₹1,639 |
Government Policies and Incentives
The data provided by the Union Ministry of Road Transport and Highways to the Indian Parliament shows that as of August 2023, the number of EVs registered in India was 2.83 million.
With the annual sales of EVs in India in 2030 expected to cross 10 million units, the government of India has introduced some policies and incentives to encourage the adoption of EVs in India further.
To achieve the target of zero emissions in India by 2070, the Indian government launched Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme in 2015 to cut down the dependence on fossil fuels and to tackle issues of emissions by traditional vehicles. As per this scheme, INR 99.6 billion was allocated in April 2019 for a five-year period. About 86% of this budget was allotted to generate demand for EVs in India. This fund will support 7,000 e-buses, 55,000 four-wheeler electric passenger cars (including hybrid), 0.5 million electric three-wheelers, and 1 million electric two-wheelers.
It also unveiled a Production Linked Incentive (PLI) Scheme for the automobile sector in September 2021, with a monetary budget of INR 259,380 million, to encourage domestic manufacturing of advanced automotive technology (AAT) products and lure investments in automotive manufacturing.
Types of EV charging stations in India
There are three types of EV charging stations in India: Level 1, Level 2, and Level 3, which provide AC and DC charging.
Technology and Infrastructure Requirements
To set up public EV charging stations, the Union Ministry of Power (MoP) requires the following technology and infrastructure to be in place.
Each charging station should have an exclusive transformer with the associated substation equipment, including safety appliances.
Each should have 33/11 kV lines/cables and related equipment, including line termination, etc., proper cabling, and electrical work to ensure safety and sufficient space for charging and vehicle entrance/exit.
They also need to collaborate with at least one online Network Service Provider (NSP) to facilitate the move forward with remote/online booking of charging slots. Both wired and wireless charging are used to charge EV batteries.
Key Players in the Indian Market
Key players in India’s EV charging market are Tata Power EZ Charge, ChargeZone, Glida (Fortum India), Volttic, Bolt.Earth, Statiq, ThunderPlus, etc.
Business Models for EV Charging Stations
The two major business models for EV charging stations in India are subscription-based and pay-per-use.
In a subscription-based model, users pay a subscription fee for a specific timeframe, while in a pay-per-use model, they pay a fee that is directly related to the level of electricity used.
Investment and Financing Options
An individual or company can set up a franchise for an EV charging station in India by collaborating with top players in the EV manufacturing sector.
The business requires an investment of US$ 1,204.8 to US$ 12,048.2. The renowned companies that offer franchisees are Tata Power, PlugNGO, Charge+Zone, Volttie, Charge My Gaddi, ThunderPlus, etc.
Challenges and Opportunities in India
Ideally, EV charging stations should be spread well all over India so that it can reduce ‘range anxiety.’
As of now, initial expenditures to maintain EVs in India may be higher than those for traditional vehicles owing to the higher costs of batteries. But transitioning to EVs is worth it in the long run.
Consumer awareness about EVs must be raised to a larger extent in India so that more people learn about the advantages of owning EVs.
Grid support may pose a challenge as of now, but it can be overcome with a steady energy supply.
EVs offer several benefits to users compared to traditional vehicles, such as drastically reduced noise pollution, reduced maintenance costs in the long run, incentives and government policies to boost the use of EVs, and more.
Environmental Impact and Sustainability
Unlike their traditional counterparts, EVs produce practically zero tailpipe emissions, which benefits the environment healthily across India.
Consumer Behavior and Adoption Rates
According to a study by McKinsey, 70 percent of upmarket car owners in India are considering buying electric cars as their next cars. Owing to factors like climate change, the government of India has introduced incentives, including the Faster Adoption and Manufacturing of Electric Vehicles (FAME) and PLI schemes to accelerate the adoption rates of EVs. Furthermore, most Indian cities have announced access regulations for traditional vehicles to decrease air pollution drastically.
The study also states that twice the number of Indians prefer EVs with full batteries over hybrid EVs. This has spurred companies, like ThunderPlus, a firm that provides state-of-the-art EV charging products, to promote themselves across India.
Partnerships and Collaborations in the Industry
Tata Passenger Electric Mobility (TPEM) is partnering with Shell India Markets and HPCL to set up public charging stations all over India. On the other hand, Statiq is partnering with companies like GLIDA, Hyundai, and ChargeMOD to give the EV charging sector in India a leg up.
Given that it is the fifth-largest economy in the world as per IMF’s data listed on Forbes magazine, India is bound to play a key role in transitioning to a green future.
Meanwhile, we at ThunderPlus are doing our own bit to enable this worldwide initiative with our top-quality EV chargers and charging solutions. To know more, visit our website and go through our offerings.