Exploring the Rise of EV Charging Stations in India: A New Era for Electric Mobility
The Indian automobile industry ranked fifth largest globally and is expected to become the third largest by 2030 as the demand for electric vehicles is growing tremendously.India's electric vehicles recorded strong growth in 2023, supported by the government's implementation of favourable policies and programs. NITI Aayog aims to achieve 70% penetration of EVs in all types by 2030, indenting to attain net zero carbon emissions by 2070.In this article we will explore the rise of a new era for electric mobility.
Rapid expansion of EV charging stations: Fueling the rise
The rapid expansion of EV charging stations in India is a key driver behind the growing popularity of electric vehicles.The number of public charging stations has seen a dramatic rise.The growth isn't limited to major cities. Stations are popping up across the country, ensuring wider accessibility. EV charging stations are a bright future of electric mobility in India. As infrastructure continues to develop and costs become more manageable, we can expect to see a surge in EV adoption across the country.Properties with EV charging facilities are becoming a selling point, potentially increasing their value.
There are some challenges to address like Despite the rapid growth, India still needs to significantly increase the number of stations to meet its ambitious EV adoption goals.Maintaining charging stations is a bit expensive.
Government support
The Indian government has ambitious plans for electric vehicle adoption.Government is aiming for 30% of new vehicle registrations to be electric by 2030. To achieve this, they are heavily investing in charging infrastructure through schemes like FAME 1 & 2.FAME stands for Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme has been a key driver.FAME 1 & 2 provided direct purchase subsidies to EV buyers, making them more affordable.Reduced Goods and Services Tax (GST) on EVs compared to petrol and diesel vehicles makes them more attractive. Additionally, income tax benefits on EV purchases can further ease the financial burden.
The government is exploring battery swapping policies to create a network of stations where depleted batteries can be quickly replaced with charged ones, reducing charging time.Phased manufacturing program incentivizes domestic manufacturing of EVs and their components by offering import duty concessions.
Consistently declining cost of EV battery
A consistent decline in the cost of lithium-ion batteries positively influences the market growth. Battery cost thus reduces the total cost of operation (TCO) parity and the high upfront costs of EVs in India.Battery costs have declined by around 85% over the last decade which has witnessed broader EV adoption in all vehicle categories.Prices of key battery metals, such as lithium, have fallen dramatically since January due to substantial growth in production capability across all parts of the battery value chain, from raw materials and components to battery cells and packs. The battery pack prices fell to INR 139 per kilowatt hour in 2023, a 14% drop from INR 161/kWh in 2022.
Fast track EV infrastructure development
The number of public charging stations has skyrocketed from a small base just a few years ago. India now boasts over 16,000 operational stations, with the number expected to climb further.The growth isn't limited to major cities. Stations are popping up across the country, ensuring wider accessibility for EV owners.The infrastructure offers a mix of AC and DC fast chargers, catering to different charging needs and speeds.
Summing Up
The rapid expansion of EV charging stations paving the way for the future of electric mobility in India. As infrastructure continues to develop and costs become more manageable, we can expect to see a surge in EV adoption across the country.
