Electric vehicles are projected to constitute 7% of new car sales in India by 2030 that indicates a significant shift towards electric mobility. This transition is part of India’s broader efforts to address environmental concerns, particularly the rising pollution levels attributed to the transportation sector’s CO2 emissions.
To support this transition, the government has implemented various measures. These include reducing the GST rate on electric vehicles from 12% to 5% which makes them more affordable for consumers. Also, the government has introduced income-tax deductions to further incentivize the adoption of electric vehicles.
Furthermore, the government plans to establish electric vehicle charging stations in key urban areas, including large cities, state capitals, and smart cities. These initiatives aim to promote the development of sustainable transportation infrastructure and pave the way for greener, smarter cities in India.
India To Become The Next Big EV Market
The electric vehicle industry appears to have a promising future in India, drawing significant attention from the government due to its potential benefits. This focus extends beyond environmental considerations, as India envisions becoming a manufacturing hub for electric vehicles, aiming to create employment opportunities and foster economic growth.
Currently, around 3.97 lakhs electric vehicles are in operation on Indian roads. The lower average prices of these vehicles may pose a barrier to widespread adoption over the next decade. However, efforts by the government to enhance affordability, coupled with initiatives to ensure universal access to electricity, are expected to contribute to increased electric vehicle uptake.
Global statistics indicate a notable rise in electric vehicle sales, projected to grow from 1.1 million in the previous year to 11 million in 2025, with a further surge to 30 million in 2030. The Indian government has mandated the full electrification of new three-wheelers from April 1, 2023, and two-wheelers below 150 cc engine from April 1, 2025.
Despite the higher initial cost of electric cars, the increasing prices of petrol—rising by over 50% in recent years—make the operational costs of fuel-based cars comparatively expensive. The government’s support and the potential for substantial fuel savings suggest that the growing popularity of electric cars in India is imminent. The higher upfront investment in electric vehicles is anticipated to be recoverable within a couple of years through reduced fuel expenses.
The Increase in EVs Surge the Demand for Charging Stations
Charging infrastructure is vital for EV deployment. In India, electric cars hold a market share of only 0.06%, compared to 2% in China and 39% in Norway. The government has initiated several measures to boost EV manufacturing and adoption.
However, limited charging infrastructure availability and long charging times hinder EV adoption. As the number of EVs increases, there will be a need for more public charging points. Experts suggest that to achieve the government’s target of seven million electric vehicles by 2020, a robust charging ecosystem is essential.
Initially, there will be 1,000 charging stations with at least 6,000 chargers, with a focus on grid-connected solar PV projects. This presents a significant opportunity for entrepreneurs entering the EV market.
Top 10 EV Charging Station Franchise Provider in India
In the landscape of EV, charging station franchise is an excellent business opportunity. There are various options available in the industry, if you are looking to setup a charging station. Read the details of these companies that provide charging station franchise in India.
The List of top 10 charging station providers in india are:
- Tata Power
- Ather Energy
- Fortum Charge & Drive India
- Delta Electronics India
- Magenta Power
- ChargeGrid
- EV Motors India
- Exicom Power Solutions
- Fourth Partner Energy
- Bharat Electronics Limited (BEL)
