Scope of EV Expansion and Opportunities in India

In order to truly understand the scope of EV expansion and opportunities, let do a quick analysis
of India’s present EV infrastructure setup. As per the reports for Inc24, as a counterbalance to the
current charging needs of 20 Lakh electric cars in Indian streets, a minimum of 4 lakh charging
stations need to be installed by the end of 2026. The current statistics show that India is holding
only 300 public EV chargers in comparison to their fossil fuel counterpart which counts to
57,000. On grounds of a direct comparison our neighbor China has more than 2 Lakh charging
points as of 2016. According to the reports form ‘MarketWatch’, the Indian EV charging
infrastructure is expected to achieve a compounded annual growth of 40% in the next few years.

It is also estimated that if India is able to ramp up its infrastructure capabilities there is a higher
chance of converting 30-40% of Indian traffic to run on electric energy by the end of 2030.
Other than the infrastructure deficiency, the second major factor that limits the faster EV
adoption in India is the high cost of electricity for many averages consumers but this might as
well be resolved in the upcoming days as the government has already taken initiatives to cap the
‘per unit cost’ for EV charging at public charging stations to 15% of the state Average Cost of
Supply (ACS). Under the new proposed scheme, state electric regulatory commission (SERC)
would have the authority to determine the tariff rates of public charging stations without binding
to present conditions. According to the new states amendments, the tariff rate for EV station will
be determined by the selected commissions in light of the tariff policy issued under section 3 of
the Electricity Act of 2003. Rates would be marginalized to an average of cost supply plus 15%,
unless being specifically drafted under conditions.

ACS is defined as the average rates by which electricity is supplied to its consumers in a state
and according to the attest records (2017-2018) India’s ACS stands at INR 5.48 per unit of
power consumed. With the power rate capping underway, it is widely believed by experts that
people would shift towards e-mobility at a faster phase. This attractive tariff rate coupled with
government incentives on EV purchase would encourage users to adopt electric mobility at a
faster rate just as envisioned by the government.