The electric vehicle (EV) market in India is rapidly expanding, yet the charging infrastructure is still at a nascent stage. Currently, EV penetration in India is just 2%, compared to 38% in China, where even with high penetration, every ninth EV has access to a charging station. This gap presents a massive growth opportunity for entrepreneurs looking to enter the EV charging space.
With EV sales increasing year-on-year across two-wheelers, three-wheelers, passenger, and commercial vehicles, the demand for charging stations is set to rise sharply. The Government of India targets 30% EV penetration by 2030, meaning early entrants in the charging infrastructure business can capitalize on this growth.
Location: Choosing the right location is critical. High EV density areas such as IT hubs, malls, or popular food joints can maximize footfall and revenue. A poor location could limit usage and reduce profitability.
Partnerships: Partnering with a popular and reliable charging infrastructure provider ensures higher consumer adoption of their app, resulting in better revenue generation for the station.
EV charging providers typically offer two franchise models:
Company-Owned & Operated: The company manages setup, operation, and manpower; the franchise earns revenue sharing with minimal involvement.
Franchisee-Owned & Operated: The franchise invests in setup costs and operations, but gains a higher share of revenue.
AC Smart Sockets: Setup costs start around ₹18,000, with daily revenue potential of ₹100 per day per small unit, translating to ₹36,500 annually.
DC Fast Chargers: Costs can range from ₹7 lakh upwards, capable of charging multiple cars daily and generating revenues around ₹1,14,000 per year. Exact numbers depend on the location and usage.
Additional costs include land, transformers (if unavailable), electricity, licenses, and permits. Government subsidies can significantly reduce initial setup costs.
Like any business, EV charging infrastructure comes with risks such as low initial EV density, technical issues, and partner reliability. Choosing the right location, efficient risk mitigation, and a strong partner are key to success.
Investing in EV charging infrastructure offers a promising avenue for passive income while contributing to India’s EV adoption goals. Early movers in strategic locations can achieve faster returns, secure long-term growth, and potentially expand operations in a rapidly growing market.