India To Boost EV Charging Infrastructure Ninefold By 2024: Forvis Mazars Insights

Published: Thursday, August 8, 2024, 11:45 [IST]

The electric vehicle (EV) infrastructure market in India is experiencing rapid growth, according to a recent report by Forvis Mazars in India. The number of public Battery Electric Vehicle (BEV) charging stations surged from 1,800 in February 2022 to 16,347 by March 2024. This nearly ninefold increase is essential to meet the rising demand for EVs, driven by environmental awareness, high fuel prices, and government incentives.

Rising EV Sales and Charging Infrastructure

Global electric car sales increased by 27% from 2022 to 2023, reaching 13.09 million vehicles. This surge highlights the urgent need for a robust charging infrastructure to support over 40 million EVs on the road by 2024. In India, EV sales tripled last fiscal year, especially in the two-wheeler (2W) and three-wheeler (3W) segments. The four-wheeler (4W) segment also shows promise with several new models expected.

India's EV Growth and Key Drivers

Factors such as lower total cost of ownership, ease of use, sustainable choices, a growing supplier network, product customisation, and government incentives like FAME-II are driving EV adoption and charging infrastructure growth in India. Rohit Chaturvedi from Forvis Mazars in India stated, "India needs to scale up public charging infrastructure to meet the growing demand and reduce range anxiety."

Charging Infrastructure Development

India's unique charging infrastructure demands stem from the dominance of 2Ws and 3Ws that primarily use AC slow charging and battery swapping. In contrast, 4Ws and buses require both AC and DC charging solutions.

Home and workplace charging will dominate for private 2Ws and 4Ws, while commercial fleets will depend on private depots or public networks. DC fast chargers will cater to the increasing demand for public charging as more 4W EVs hit the roads.

Market Potential

By 2030, India is expected to have around 50 million EVs on its roads with a market size projected at US$48.6bn. To achieve a ratio of one charger per forty EVs, India will need over 400,000 chargers installed annually, totalling 1.32 million chargers by that year.

Government Policies

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provides incentives for both EV adoption and charging infrastructure growth. The Ministry of Heavy Industries has approved 2,877 EV charging stations across various states and an additional 1,576 stations on highways and expressways.

The Ministry of Housing and Urban Affairs aims for semi-public charging at 20% of all vehicle holding capacity with extra power load requirements for premises.

Forvis Mazars in India's report underscores India's significant progress in expanding its EV infrastructure. With projections indicating that nearly one-third of India's passenger vehicle market will be electric by 2030, scaling up public charging infrastructure is crucial.

Forvis Mazars remains committed to supporting this growth through expert advisory services to help India meet its ambitious EV targets for a sustainable future.