What is the outlook for electric vehicle charging stations in India?
The Indian automobile market, which is expected to be the fifth and third largest in the world, should embrace a widespread and fast adoption rate of green vehicles. As a result, 2021 witnessed a sale of more than 3 lakhs electric vehicles, an increase of 168% from 2021. Of the 168% sales growth recorded in 2021, 48% came from two-wheelers, 47% from electric three-wheelers, passenger cars secured 4% and electric buses will increase slightly by 0.36%. According to the IVCA-EY-IndusLaw report, this number is expected to exceed 9 million by 2027.
Currently, there are only 1,742 charging stations and 1.5 lakh electric vehicles in the country, and this number is expected to grow to 1 lakh EV charging stations in India by 2027 to meet the demand for increasing charging stations on India's upcoming infrastructure. The future growth of the electric vehicle industry has already attracted significant investment globally and new EV-dedicated startups are coming up day by day. Investment in this sector was approximately $6 billion in 2021 and this figure is expected to grow to $20 billion by 2030. One aspect of the electric vehicle ecosystem is funding and investment to enable stakeholders to benefit from this emerging segment of the automotive sector.
India EV Charging Equipment Market Outlook Report 2022-2026
The Indian Electric Vehicle Charging Equipment Market Forecast Report for FY 2026 depicts a broad and complete study of the potential of India's electric vehicle charging equipment sector. This report analyzes the current EV landscape and state of charging infrastructure in India, profits and returns from EV charging equipment, and charging segment from charger types such as ultra-fast chargers, fast or DC chargers and slow or AC chargers, and charging station types. It will also give insights in terms of applications such as 4W, 3W, and 2W, geographic distribution and its channels, key trends and developments in the EV sector, roadblocks, central and state EV policies, and product reviews. The report also gives a comprehensive study of the future EV market and revenue trends including industry size and newly emerging opportunities in the near future.
The Indian electric vehicle charging equipment market is expected to generate significant revenues due to the increased adoption rate of electric vehicles, EV market penetration, and increased government initiatives to improve EV charging infrastructure for EV owners. The central and state government policies, local supply chains, affordable battery options, and expanded charging infrastructure are accelerating the electric vehicle market and are expected to contribute $6.4 billion over the coming five years. E3W, E4W, and E2W are the most promising electrification sectors in India, expected to exceed 4 million units by the next three years. In addition, insufficient charging station infrastructure, lack of consistency in EV charging, and increased demand for luxury and specialty equipment have had a significant impact on the vehicle's adoption rate.
Despite the country's ambitious goals of electrification by 2030, India's electric vehicle sector is still facing major roadblocks in the expansion of the EV market. But we cannot deny the fact that India offers the largest untapped EV market in the world, especially in the affordable electric two-wheeler segment. On the automatic route, the industry allows 100% FDI. The central government is also taking several initiatives in boosting the transition to environmentally friendly transportation in the public fleet. A good example is a recent step to revise the Hybrid and Electric Accelerated Vehicle (FAME) II program to make electric two-wheelers more affordable in India.
In the second phase of the FAME scheme on November 25, 2021, approximately 1.65 lakh electric vehicles received incentives worth approximately INR 5.64 billion. In addition, the scheme has imposed sanctions on 6,315 electric buses, 2,877 electric vehicle charging stations worth INR 5 billion in 68 cities in 25 states/union territories, and 1,576 charging stations worth INR 1.10 billion on various national highways.
Furthermore, several manufacturing-related incentive programs emerged with an aim to create a local supply and production ecosystem to nurture goals related to the wider adoption of electric transportation. This is achieved by encouraging new investment to develop local supply chains for key technologies and types of equipment.
Conclusion
The government seems to recognize the emerging opportunities in the EV market. The government is taking steps to promote market demand in priority areas such as electric motorcycles and implement incentives to achieve the positioning of key components such as ACC batteries, electric vehicles, and auto parts through appropriate PLI schemes. In addition, several Indian states have adopted EV policies to attract industry investment and make the adoption of EVs in the consumer market more viable. Besides all these efforts, the road to complete mobility and green vehicle in India still has its own roadblocks and challenges and we are expecting that India will soon electrify its fleet and achieve its ambitious goals by 2030.
