India’s EV Charging Infrastructure Ecosystem: How can India Fast-Track the Adoption of Electric Vehicles?

May 2024

Is India embracing Electric Mobility?

India is accelerating its transition towards electric vehicles (EVs), driven by environmental concerns, rising fuel costs, and the need for sustainable urban mobility solutions. The Centre is pressing the pedal on green mobility by addressing key issues like manufacturing of EVs and developing an efficient, affordable and accessible charging infrastructure. In India, the success of electric mobility will directly depend upon capital costs and overcoming range anxiety. With EV charging infrastructure being such a critical component of this transition, Let us delve into the current landscape and future outlook of EV charging in India.

India’s Electric Vehicle Scenario (2023-24)

According to the government's Vahan website, from April 2023 to March 2024, India saw the purchase of 16,65,270 EVs, averaging 4,562 EVs sold each day, a significant jump from the previous year's 3,242 daily sales.

From an overall standpoint, India currently boasts over 4 million EVs on the road, supported by nearly 12,200 public EV charging stations nationwide – with Maharashtra, Delhi, and Karnataka leading the charge, which means approximately 1 charging station per 135 EVs. There are also apps today, where a commuter can locate the nearest EV charging station at any point.

With an ambitious goal of electrifying the transportation sector significantly by 2030, India will need a total of 46,000 charging stations across the country in the next few years, indicating substantial room for improvement.

Centre’s efforts to accelerate adoption of Electric Vehicles

Coming down to specifics, the Government of India has set a target to electrify 70% of all commercial vehicles, 30% of private cars, 40% of buses, and 80% of two-wheeler and three-wheeler sales by 2030. To achieve this, the Centre has been walking the talk in terms on initiatives, incentives and an enabling policy regime towards electric mobility.

FAME1 and FAME2 has also focused heavily on charging infrastructure, with industry players also showing an active interest in the overall EV Charging ecosystem. Some of the measures to boost the entire EV ecosystem in India include:

• Public EV charging stations have been delicensed, allowing anyone to set up a public charging station.
• The GST on EVs has been reduced from 18% to 5% on EV charging stations.
• Public sector oil marketing companies like IOCL and HPCL have been directed to prioritize the setup of charging stations at petrol pumps.
• Electricity tariffs for EV charging stations are capped at the Average Cost of Supply + 15%, making it cheaper than commercial tariffs.
• The FAME II Scheme has supported the establishment of many charging stations, with the FAME III Scheme eagerly awaited.
• Several states have their own incentives for supporting EV charging infrastructure, such as Maharashtra's property tax rebate for builders and a Rs 5 lakh subsidy for the first 500 public fast charging stations.

Integration with Renewable Energy

Integrating EV charging stations with renewable energy sources is another conversation that ios beginning to take centre stage: Integrating renewable energy sources into EV charging infrastructure can make it cheaper and more sustainable. It helps reduce dependency on fossil fuels bringing the green into green mobility. Solar-powered charging stations are already being piloted across the country, especially in our country - contributing to a greener EV ecosystem.

• High cost of setting up charging infrastructure and limited grid capacity.
• Lack of standardization across charging solutions, requiring universal compatibility for all EVs, at any particular station.
• Integration with Renewable Energy
• Expiry on financial incentives

India's journey towards a robust EV charging infrastructure is well underway, driven by government initiatives, private sector involvement, and technological advancements. While challenges remain, the collective efforts of stakeholders promise a cleaner and more sustainable future for India’s transportation sector. Developing electric mobility and a comprehensive EV charging network is not just a necessity for India's energy transition.