India Electric Vehicle Charging Equipment Market - Growth, Trends, and Forecast (2018 - 2023)
With Tesla’s successful launch of electric vehicle (EV) manufacturing networks across the globe, it has opened up enormous opportunities for the electric vehicles market all over the world, particularly in India. On November 30, 2013, Mahindra Reva Electric Vehicles Pvt Ltd. (Mahindra Reva) partnered with Bangalore International Airport Limited (BIAL) to set up EV charging stations at the Bangalore airport. Mahindra Reva has provided more than 100 charging stations in Bangalore, exclusively for Mahindra e20 customers that allow the customers to access at least one charging station at every 5 kms.
Companies, such as JSW, National Thermal Power Corporation Limited (NTPC) and the Power Grid Corporation of India Limited (PGCIL) are also planning to foray into the electric vehicle and charging stations market in India. Moreover, Tata Power and Ola have planned an investment of around USD 100.81 million for the development of charging infrastructure in Nagpur and Delhi, respectively. These factors along with the government’s ambitious plan of achieving at least 6-7 million electric vehicles on the road by 2020, under the National Electric Mobility Mission Plan (NEMMP) is expected to emanate demand for electric vehicle charging equipment in India, which is projected to register a significant growth during 2018-2023 (referred to as the forecast period).
Adoption of Electric Vehicles to Drives the Market
Growing sales of electric vehicles is a major factor driving the demand for electric vehicle charging equipment in India. Various governments across the country are offering subsidies in the form of road tax exemptions to electric vehicle owners to encourage the adoption of electric vehicles in India, which has, in turn, aided in the expansion of electric vehicle charging equipment market. The NEMMP have also provided the basic groundwork for the adoption of hybrid and electric vehicles in India. Moreover, the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) India Scheme that supports the development of hybrid & electric vehicles, demand creation, pilot projects, and charging infrastructure, is expected to be a driving factor for increasing the demand of electric vehicle charging equipment over the next few years. Electric vehicles charging stations in India are installed mainly in homes, workplaces, and at public places, including shopping malls, petrol pumps, public parking, and mass transit stations.
Increasing Government Initiatives Accelerates the Growth
The Government of India has directed the country’s largest power generation utility, NTPC Ltd. and other public sector undertakings (PSUs) to work on setting up charging stations across major metropolitan cities. The state-owned utilities in India are also working on a plan to lower the cost of setting up charging stations from USD 3877.50 to USD 1551. These initiatives can help in increasing the number of electric vehicles charging stations in India.
As of July 2017, India had only 100 EV charging stations in India. Increasing preference towards fuel-based vehicles over electric vehicles for long-route trips is the major constraint for the market growth in India. Additionally, the high initial cost is another factor hindering the growth of EV charging equipment market in India. To overcome this, the government needs a minimum investment of USD 27.9 billion for setting up EV charging stations in India.
BEV Preferred Over PHEV
Battery-electric vehicles (BEV) operate for more than 100 miles on a single charge, while plug-in hybrid electric vehicles (PHEV) operates up to 40 miles on battery power and then switches to internal combustion engine (ICE) to propel the vehicle either directly or through the electric motor. Therefore, BEV is preferred over PHEV in India.
Key Developments in the Market