Indian EV charger market poised for 46.5 per cent CAGR growth from 2022 to 2030

The Customised Energy Solutions and India Energy Storage Alliance have unveiled their third annual report titled ‘2022 India Electric Vehicle Charging Infrastructure and Battery Swapping Market Overview.’ This comprehensive report delves into various aspects, including revenue, capacity, and volume, offering a detailed analysis of the current market scenario and projections for EV chargers, categorised by charger type.

The electric revolution in India is gaining ground at an astounding rate. This report emphasises the progress made by the country in electrifying the transportation industry. Government initiatives and private funding are advancing the country towards a clean, affordable electric mobility. With a dedication to sustainability and innovation, India is well-positioned to spearhead the worldwide movement towards emission-free transportation. The report is devoted to the analysis of EV policies at the federal and state levels with regard to EV charging and battery swapping. It also covers business models for EV charging, significant difficulties, and new trends in EV charging as it further examines the development of the sector. Furthermore, the report highlights the analysis emphasising the industry partnerships and government initiatives in advancing India’s electric car infrastructure.

The Indian EV charger market is anticipated to grow at an astounding compound annual growth rate (CAGR) of 46.5 per cent between 2022 and 2030, based on the business-as-usual (BAU) scenario of the report. By 2030, it is expected to sell 3 million units annually, with a significant emphasis on type-2 and fast charger installations, to meet the demand for chargers to support the national EV scenario. The report includes chargers with ratings of 3.3 kW or higher. Additionally, more than 17,000 EV chargers were distributed overall in 2021. This covers the purchase of chargers by public sector undertakings (PSUs), business fleet operators, bus operators, and CPOs from electric vehicle original equipment manufacturers in addition to electric four-wheeler.

With the tenders announced by PSUs like Kerala State Electricity Board, Convergence Energy Services Limited, NTPC Vidyut Vyapar Nigam Limited, and Indian Oil Corporation Limited, which are anticipated to add about 6,000 charging stations by 2023, the demand for EV chargers in India increased in 2022. The Department of Heavy Industries’ initiatives under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India scheme have increased the number of charging stations in India. State governments are also actively increasing the number of EV charging stations in their states by offering enticing incentives including capital subsidies and 100 per cent refund of state goods and services tax. A limited number of fast and slow EV chargers can be deployed in states like Haryana, Kerala, Madhya Pradesh, and Andhra Pradesh owing to significant capital subsidies. Furthermore, the availability of additional state subsidies makes Delhi and Maharashtra attractive places for establishing private charges. Additionally, a few state regulatory commissions have established EV charging fees under a different category in the tariff order.

The report highlights the primary drivers propelling the growth of the EV charger market in the current decade. It includes the prediction that annual sales of lithium-ion-based electric vehicles are set to reach 17 million units by 2030, encompassing various vehicle categories like electric two-wheeler, three-wheeler, four-wheeler, electric buses, electric trucks. Additionally, certain states have implemented favorable policies and regulations to promote the expansion of EV charging infrastructure. These measures encompass capital subsidies to facilitate the installation of both slow and fast EV chargers, as well as the requirement to designate a specific percentage of parking spaces in new commercial and residential buildings as EV charging-ready. Furthermore, collaborative efforts between electric vehicle manufacturers such as Hero Electric, BYD India, and Ather Energy and charge point operators such as Charge Zone and Magenta ChargeGrid are expected to drive the establishment of new EV charging stations in the forecast period. In order to further contribute to the growth of EV infrastructure, real estate development companies like Omaxe, Lodha Group, MyGate, and Rustomjee Group have joined forces with EV charging station developers to deploy EV charging solutions in both new and existing properties.