A recent report by Forvis Mazars has unveiled a rapid expansion in India’s public EV charging infrastructure, with a staggering ninefold increase in the number of charging stations between February 2022 and March 2024. This surge underscores the country’s burgeoning electric vehicle (EV) market and the critical need for robust charging networks to support growing EV adoption.
The report projects a massive potential for the EV infrastructure market in India, estimated to reach a staggering US$48.6 billion by 2030. To meet this demand, India will require the installation of over 400,000 chargers annually, bringing the total to 1.32 million by the end of the decade.
While the government has taken significant strides through initiatives like FAME-II, the report emphasizes the need for continued investment and policy support to bridge the gap between EV supply and charging infrastructure. Key challenges include the development of suitable charging solutions for different EV segments, ensuring interoperability, and addressing the economics of setting up and operating charging stations.
Key findings from the report:
- India needs to scale 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.
- India’s aim for 30% electric vehicle sales requires installing 1.3 million public chargers by 2030.
- A current requirement of ~46,000 chargers exists to achieve the global ideal standard of 20 EV/public chargers.
- Key players in India’s electric vehicle charging infrastructure sector include Tata Power, Charge Zone, Jio BP, Statiq, and GoEgo Network.
- The investment required to set up a charging station is approximately ~6 million with a project IRR of ~21%, making it a very attractive industry.
- Collaboration among oil marketing companies and utilities and strategic partnerships by charging infrastructure providers can jointly create a pathway for improved charging infrastructure.
Forvis Mazars emphasizes the crucial role of partnerships between government, private sector, and charging service providers in accelerating the growth of India’s EV charging ecosystem. The report highlights the importance of strategic planning, infrastructure development, and financial incentives to create a conducive environment for EV adoption.
