By Anand Kabra
The Indian auto industry has undergone enormous transformations over the past two years.
At present, car manufacturers are investing heavily in electronic vehicles
and building infrastructure that will not only lower dependence on fossil fuels but also reduce pollution significantly.
With more people becoming aware of the impact of global warming, green-friendly choices to halt extreme climate change is the way to go. So, globally buyers are considering electronic vehicles (EVs) nowadays. We can see a major shift taking place in the automotive sector across the world as it attempts to adopt alternative options to fossil fuels. Rising oil prices are another key reason for India’s fast transition to e-mobility. Moreover, at the Conference of the Parties 26 (COP26) Summit, India committed to an ambitious goal of reaching a minimum of 30% private ownership of EVs by 2030.
According to a Moody’s Investors Service report, India has the fourth-largest car market globally, but electric vehicle (EV) penetration is just 1% at present. The report also said that government incentives to promote EV adoption, including tax incentives, subsidies for EV manufacturers and local battery manufacturing, as well as for buyers, at the state level and GST rate cuts may help drive EV adoption in India. State governments, such as Karnataka and Uttar Pradesh, have taken steps to promote EV adoption by announcing benefits for prospective buyers.
But a major challenge for EV adoption in India is the lack of strong charging infrastructure.
Trends & Developments
The EV charging station market in the country is changing fast with some major developments and trends emerging over the past few years.
- JV between Operators & EV-makers:Charging station operators are joining hands with EV makers to set up charging infrastructure across India. For instance, Tata Power has entered into a partnership with Jaguar Land Rover to set up charging stations for their EVs, while MG Motor has joined hands with Fortum Charge and Drive to build fast-charging stations.
- Utilizing Green Energy Sources:Several charging station operators are adopting such green energy sources as solar power. This not only cuts down on the carbon footprint of the charging stations but also helps address the power shortage issue in some parts of the country.
- Taking the help of Digital Platforms:Many charging station operators are taking the help of digital platforms to offer real-time information about charging stations to users. For instance, EV Motors has created a new mobile app to provide information about nearby charging stations.
- Growing Charging Infrastructure: The government has made it compulsory for public parking lots and fuel stations with over 5,000 square meters to have EV charging stations. This is likely to increase the number of charging stations in the country significantly.
- Fast-Charging Technology: Many charging station operators are adopting fast-charging technology to lower charging time for EVs.
Challenges for Charging Station Market
In the past few months, the EV charging station market in India has seen some promising developments, but there are still several challenges that need to be resolved. These are…
- A huge amount of capital investment is required to set up a charging station
- A stark absence of standardization
- Limited grid capacity
- No basic awareness among consumers
- Limited access to funding
The Next Steps in the Process
But, despite the challenges, some steps can be taken to promote the growth of the EV charging station market in India. The government can
- Promote public-private partnerships
- Develop standards for EV charging infrastructure
- Invest in grid infrastructure
- Make consumers aware of EV & charging infrastructure benefits
- Offer funding and incentives to small and medium businesses
Conclusion
The future of EV charging stations in the country looks promising, with several major trends and developments that have emerged over the past few years. But several challenges must be resolved soon including high capital costs, lack of standardization, limited grid capacity, lack of awareness among consumers and limited access to funding. By taking steps to address the challenges that face the EV market, India can continue to promote the adoption of EVs and build a robust charging infrastructure to support them.
(The author is Mr. Anand Kabra, Vice-Chairman & MD, Kabra Extrusiontechnik Ltd., and the views expressed in this article are his own)
