What is the profit margin of EV charging Stations in India?

India witnessed a growth of 149% in EV sales with 49,607 units sales in 2022 compared to 2021.the exponential rise in the number of Electric vehicles in India likely to create a demand for EV charging stations in public spaces and expressways.

Someone looking for a new business opportunity which is highly profitable as well as sustainable,green,eco-friendly, then Electric vehicle charging infrastructure is the right choice for you.In this article we will understand different aspects of EV charging infrastructure business like their potential,viability,profit margin,investment.

Investment required to setup EV charging station

Cost of setting up an EV charging station in India varies from Rs. 1 Lakh to Rs. 40 Lakhs depending on the types of chargers and investment one is willing to make.A typical charging station can cost between Rs. 5-10 lakhs to set up, and the charging points can range from Rs. 50,000 to 1 lakh per point. Cost also varies depending on various factors such as location,number of charging points and charger type.

Approximate cost according to charger type

There are two types of EV chargers based on type of current. The AC charges are comparatively slow chargers and DC has a range of fast charging capabilities. Further these chargers are categorised by the protocol they use like the CCS, CHAdeMO, GB /T. Where CCS comes from the European background, the CHAdeMO comes from Japan while GB/T is a Chinese protocol.

CCS – 60kW -12,50,000Rs

CHAdeMO – 60kW - 12,50,000Rs

Type 2 AC – 7/22kW -1,00,000Rs

Bharat DC-001 – GB/T -2,40,000Rs

Bharat AC-001-60,000Rs

Some other charges includes (Approximate cost )

Electricity connection -7,50,000 /-

Civil works-2,50,000 /-

Software integration and management-40,000 /-

If land is at lease ,then lease-6,00,000 /- yearly

Technician,Manpower,Maintenance-3,50,000 /- yearly

Advertising and promotion-50,000 /-

Minimum infrastructure requirement for EV charging station

There should be adequate space for charging and Entry / Exit of Vehicles

A transformer must be installed along with safety equipment

There should be a 33/11KV Cable with related equipment

local certifications, if any required. (Varies state to state)

Appropriate Civil works should be there

Understanding revenue model

Revenue projections are something which we do not have control on. But we can assume a scenario and work out a feasible projection for the next 5 years.

Considering Electricity Utilisation of (for 360 days and a fixed margin of Rs. 10 per consumption).

600 kWh per day for 1st year: 600 x 360 x 10 = 21,60,000/-

600 kWh per day for 2nd year: 600 x 360 x 10 = 21,60,000/-

600 kWh per day for 3rd year: 600 x 360 x 10 = 21,60,000/-

800 kWh per day for 4th year: 800 x 360 x 10 = 28,80,000/-

1000 kWh per day for 5th year: 1000 x 360 x 10 = 36,00,000/-

Revenue for 5 years comes as Rs. 1,23,66,000 /- (Excluding the EVSE software management fee)

Business Potential

To enter in EV infrastructure business , initially one can

start with a small station and add more charging points as demand grows. Additionally, you can expand to new locations and even franchise your business. This scalability factor plays an important role to unlock endless possibilities and enormous growth.

Government guidelines and initiative

The Indian government has announced that anyone can put up an electric vehicle charging station anywhere in the country as long as it complies with the power ministry’s requirements.

Also As per the infrastructure guidelines set by the government, it is compulsory to set an EV Charging station at every 3 km in cities and 25 kms on Highways on both sides.For long-range and heavy-duty vehicles, there should be a charging station at every 100 kms on both sides of the road.We can see there is a huge requirement of charging stations at the moment.If you want to build an electric vehicle charging station, all you have to do is meet the government of India’s basic infrastructure requirements and choose the right charging solution supplier and location.

The government of India plans to add over 1000+ electric vehicle charging stations before 2023 as part of Phase 2 of the FAME scheme and has already requested proposals from companies.

Summing UP

Although there are only 2% EVs in India as compared to traditional vehicles, the sale of EVs are going upwards and the requirement for charging stations is rising daily.The growth outlook for India’s EV industry is extremely bright. So, if you're willing to become an entrepreneur with a broader vision and looking for a business opportunity that is both sustainable and lucrative, electric vehicle charging infrastructure is the best option.