Introduction:

Developing a reliable and well-spread charging network is vital to accelerate EV adoption. This trend is now visible in India. Our EV ecosystem is expanding rapidly, with electric two & three-wheeler sales leading the pack. The electric car segment is also looking promising with almost all major automobile players showing interest. It is common knowledge among experts that the EV charging network should complement the growth in EV sales in a country. India’s charging infrastructure is being driven by electric two & three-wheeler demand, government policy reforms and rapid expansion by private charging solution providers.

India & EV Charging:

India’s EV charging demands are different from that of western countries. Our EV market is currently dominated by two & three-wheelers as compared to electric cars which dominate the western market. The former depends on AC charging and battery swapping whereas the latter comes in a variety of battery sizes and depending on it, requires either AC or DC charging.

Home charging is likely to be the dominant mode in India and AC slow chargers, owing to its cost-effectiveness, will be in high demand. As electric cars start experiencing a spurt in sales, DC fast chargers in public charging stations and moderately-fast AC chargers will pick up pace as well.

A Deeper Understanding:

It is vital to understand the EV charging market from perspectives of different stakeholders:

From the perspective of a charger manufacturer, providing a good quality charger, manufactured as per market standards and at a competitive cost, is key to surviving in a price-conscious market like India.

From the perspective of a CPO (Charge Point Operator), location of the EV charging stations holds high importance. Profit-sharing deals with malls, hotels, restaurants, supermarkets, etc is expected to provide good returns in the long run. Partnering with residential societies is also gaining prominence in the Indian EV charging market. There are companies focusing on becoming dedicated EV charging service providers for EV fleets as well.

A single DC 60kW charger takes a minimum of eight years to achieve break-even at current utilisation levels of 3-4 cars per day. The high cost of strategic real estate, especially in metros, is a big deterrent when it comes to breaking even. Hence, CPOs are entering into revenue-sharing agreements with real-estate providers.

The Global Scenario:

The global charging infrastructure market has witnessed significant growth over the last few years. While residential & workplace charging remain the main modes of charging, highway charging has also played a big role in addressing range anxiety. Global sale of e-cars has grown rapidly thus fueling demand for EV charging infrastructure. China, US & a few European countries are model markets for EV ecosystem studies.

Countries with better charging infrastructure have seen accelerated adoption of electric vehicles.

The Indian Scenario:

In India, EV sector growth is currently being led by electric two-wheelers, three-wheelers and electric buses. AC chargers are being used by the two & three-wheelers. EV charging hubs with DC fast chargers are being established for electric buses and fleets. The government’s FAME-II scheme has proved effective in expanding the EV ecosystem and accelerating e-mobility in the country.

Factors Affecting EV Demand:

1. Total cost of ownership for electric two & three-wheelers is 10-15% lower than conventional two & three-wheelers. Cost of running is negligible as compared to petrol/diesel vehicles.

2. Due to lower number of moving parts, the maintenance cost of an EV is 40-50% lower than a conventional vehicle.

3. With battery & charger technology advancing rapidly, the next generation products are anticipated to address consumer doubts about electric vehicles and lead to faster adoption.

4. Younger drivers are more environmentally conscious and are preferring electric vehicles.

5. State level EV policies and incentives.

6. To differentiate themselves in a new, competitive market, companies would require thinking out-of-the-box. Providing free or discounted EV charging in the beginning, customized products & designs and providing value-added services like AI-based maintenance alert etc. are likely to help.

Some Important EV Charging Facts:

* When it comes to home charging, the primary criteria observed are affordable chargers & ease of installation.

* The location of charging station is a vital aspect. The charger needs to be easily accessible and simple to use. Apps with location search for EV chargers, slot booking and e-payment system is likely to make the experience a breeze.

* As seen in developed countries, customers are willing to pay a higher premium for faster charging with a reduced waiting time.

* Accessibility, convenience & affordability are critical factors when it comes to EV charging.

What can charger manufacturers do to stand out?

1. Product customization focusing on charger design, LED display, number of charging ports, combination of charging ports/ connectors.

2. Right selection of location, latest tech, scope of upgradation, value-added services and ensuring network reliability.

3. Assessment of traffic volumes, EV penetration, parking availability.

4. Ancillary services like e-payment solutions, navigation and slot booking.

5. Interoperability with different EV models and battery types.

Conclusion:

The competition in this space is likely to intensify as EV sales go up and the market becomes more mature. At present, there aren’t enough charging stations and power supply is erratic across most of the country. The true turning point will be manufacturing electric car batteries indigenously/locally, so prices can drop. Earlier Infrastructure wasn’t being invested in due to lack of utilization, but this is now changing.

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