Ashraf Engineer
March 1, 20225
EPISODE TRANSCRIPT
Hello and welcome to All Indians Matter. I am Ashraf Engineer.
India has set an ambitious goal for electric vehicles: by 2030, it wants 30% of newly registered private cars to be electric. However, of the 4.2 million passenger vehicles sold in 2023, less than 2.5% were EVs, according to consulting firm Bain & Company. There are several factors for lower-than-expected EV uptake but ‘range anxiety’, or the fear of owners that they will not find a charging station before their car battery runs out, is the greatest of all.
The root of this anxiety is a chicken-and-egg situation. Charging infrastructure is not fully developed, but auto companies want more EVs on the road before they invest in more charging stations. Buyers, meanwhile, want more chargers on the road before they invest in EVs.
At this point, India has 200 EVs per commercial charging point, which compares very poorly to the average of 20 in the US and less than 10 in China.
There’s no doubt that EV adoption is fast approaching an inflection point on the back of climate-conscious consumers and favourable government policies. However, it could run into a roadblock unless the charging network is improved very quickly.
SIGNATURE TUNE
More than Rs 30,000 crore has been invested in startups operating charging networks and battery-swapping models. Yet, expansion hasn’t kept pace with the need. In a report titled ‘Charging Ahead II’, GameChanger Law Advisors and venture capital firm Speciale Invest said: “The Indian government has also set a goal for EVs to constitute 30% of new private vehicle registrations, totalling to 80 million EVs by the year 2030. To accommodate this substantial increase in EV adoption, India will require a total of 3.9 million public and semi-public charging stations, maintaining a ratio of 1 station for every 20 vehicles.” This necessity is underscored by the fact that more than 90% of car users lack a dedicated parking space. So, they can’t install a charging point where they park their cars; they have to rely on public charging stations.
Between March 2023 and February 2024, the number of public EV charging stations in India almost doubled from 6,586 to 12,146, according to the Ministry of Power. Maharashtra topped the list with 3,079 stations, while Karnataka came next with 1,041. The sector also witnessed the rise of innovative business models, such as subscription-based services for fleets and battery-swapping networks.
Government schemes, such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, or FAME II, and Production-Linked Incentives helped attract investment. Various states such as Maharashtra, Gujarat and Karnataka also offer subsidies and land support for charging stations.
However, charging companies are hesitant to scale up infrastructure fearing that they would be underutilised – as I said earlier. The economics of any charging station are founded on how much the chargers are used. Unless the chargers are in use at least 15% to 20% of the time, they are not economically viable. As of today, that is possible only in locations with dense EV populations. So, car buyers are fearful that their EVs will shut down on trips outside cities or even within cities in locations where there are no chargers. This is why they are waiting for a better charging network to be set up.
To address this range anxiety, the government set up the PM E-Drive scheme that promotes the installation of public charging stations. Rs 2,000 crore was budgeted to install 22,100 fast chargers for e-4Ws, 1,800 for e-buses and 48,400 for e-2Ws and e-3Ws. However, their installation is not keeping pace with the requirement. Some business analysts say that the allocation is inadequate.
Let’s not forget the power distribution companies either. They play a pivotal role in EV adoption through the reliable supply of electricity. At this time, we don’t have this reliability across the country, so investments are necessary to bridge the gap.
There are other hurdles, too, such as land acquisition and low EV penetration in rural areas.
The key to success is the convergence of government support, private investment and technological innovation to ensure accessibility and affordability. India could learn from the UK, Singapore and California, which have all successfully driven EV adoption through policy incentives, public-private partnerships and clear regulatory frameworks.
What’s needed also are tax incentives and easy approvals through a single-window system. Clear fire safety standards and land acquisition procedures are a must too.
The good news is that many leading car manufacturers have begun to establish a network of EV chargers in a set up inspired by telecommunication towers. What that means is that there will be a charging station within a certain range at any location in the country, eliminating the anxiety of EV owners. Maruti, for example, plans to focus on 100 cities initially, eventually expanding to 1,000 cities and towns.
All of this is critical because any country’s EV transition isn’t just about the vehicles — it’s about the infrastructure that enables mass adoption. Charging networks are the foundation of that and they are among the most exciting investment opportunities today. So, policy support and innovative financing models are needed.
At the end of the day, a car owner requires peace of mind, an assurance that they will be able to complete their journeys without problems. If India doesn’t have a charging network that ensures that, it will never meet its EV target.
Thank you all for listening. Please visit allindiansmatter.in for more columns and audio podcasts. You can follow me on Twitter at @AshrafEngineer and @AllIndiansCount. Search for the All Indians Matter page on Facebook. On Instagram, the handle is @AllIndiansMatter. Email me at editor@allindiansmatter.in. Catch you again soon.
