Unlocking Business Opportunities in Electric Vehicle Charging Stations

The electric vehicle (EV) industry has projected a growth of 45.4% in sales in 2022-30. In 2023, almost 1.5 million electric vehicles were sold in India. Three-wheel electric vehicles accounted for 45% of it.

More people are turning towards electric vehicles, considering climate change and pollution. It is the best alternative to traditional engine vehicles. The advancement in battery technology also makes it a cheaper alternative.

With more people opting for electric vehicles, brands must strategise their business as per the market. The expansion of EV chargers in regions is also leading to its growth. At present, there are only 12,146 charging stations available in India. It presents a huge market opportunity for brands.

Giants like Tesla have changed the industry by avoiding traditional intermediaries and dealerships. It allows the brands to own and operate their chain and retail outlets to have complete control.

This article will show the top opportunities in electric vehicle charging stations. Let’s dive in!

Need of Electric Mobility

With the rise in electric vehicles, there has been a shift in the automobile industry. According to EV Volumes, the units reached 14.1 million in 2023. It marks a significant milestone in the transition towards sustainable transportation.

Governments around the world are enforcing strict rules to minimise carbon emissions. They incentivise consumers and manufacturers to use electric transportation. Elon Musk’s Tesla has made significant innovations to the rapid expansion.

Other examples of major players are Volvo and Ford. They have announced that they will shift their products to electric in the coming years. Authorities are introducing tax benefits and subsidies to increase this transition.

The future of transportation is electric. But, with growing demand and a dynamic market, a question arises. How can emerging EV brands grow further and provide to customers? The answer is through setting up electric vehicle charging stations.

We will learn further about how businesses can achieve their desired results.

Why are Electric Vehicle Charging Stations Required?

With the rise of EVs, the need for electric vehicle charging stations is more pressing than ever. It provides convenience and easy accessibility to owners to charge their vehicles.

It also supports the widespread adoption of EVs against conventional transportation. These contribute to lowering carbon emissions and promote sustainability throughout the world.

There are several challenges that businesses should keep in mind. Lack of sturdy networks of electric vehicle charging stations could minimise EV adoption. This leads to range anxiety and limited charging options among the owners. This can undermine several efforts. From decarbonising the transport sector to combating climate change.

Examples are Tata Power and ChargePoint. They have developed several electric vehicle charging stations in India. These companies recognised the growing demand for clean mobility solutions and are thriving. Tata allows people to find the nearest charging stations. It creates a seamless experience for them.

Even Tesla has put up charging infrastructures. Its Supercharger network allows users to travel long-distance without any range anxiety.

4 Opportunities in Electric Vehicle Charging Station Business in India

The electric vehicle charging station offers many opportunities for businesses to grow further. The possibilities are endless – from deploying public charging stations to developing fast-charging networks. Let’s learn more in detail below:

Charging Station Deployment and Operation

According to Mordor, the EV charging stations market will grow by 25% CAGR by 2029. The leading states are Mumbai and Delhi, with 3079 and 1,886 stations.

With this, we can assume that business has a massive growth opportunity. They can expand in emerging Indian cities. Like tier one and two – Bengaluru, Kolkata, and Hyderabad, to name a few.

Companies can invest in setting up charging stations at strategic locations. Like office complexes, shopping malls, public parking spaces, and residential communities. They can even partner with EV manufacturers and real-estate developers.

It can help them build a network of charging stations to cater to the growing EV consumer base.

Tata Power has been involved in its deployment. It has set up electric vehicle charging stations throughout India. The company provides charging solutions for residential, industrial, and public areas. They also include fast chargers.

ChargePoint is also a leading EV charging network provider. It offers solutions to companies to install and manage charging stations. Allowing them to generate revenues through subscription models and charging fees.

Energy Management and Grid Integration

There is a growing need for energy management solutions in India. There's an increase in the adoption of EVs, and users are becoming more sustainable. Businesses can utilise this opportunity to expand in an eco-friendly manner.

The energy management market is projected to generate a revenue of $239.2 million in 2024. It is expected to grow with an annual CAGR of 7.64% within 2024-28.

Indulge in grid integration services to optimise the use of renewable energy sources. It will help balance the grid load and minimise the usage of limited fossil fuels. They can offer smart charging solutions and energy storage systems to EV owners.

The best thing would be to set up solar charging stations for electric vehicles. For example, Mahindra Electric specialises in electric vehicle charging solutions. It includes energy management systems and offers solutions for solar charging. This helps in stabilisation and managing the grid load.

Collaborative Partnerships and Franchise Opportunities

New startups and entrepreneurs can collaborate with existing players in the industry. Partnerships play an essential role in scaling up electric vehicle charging stations.

Businesses can collaborate with EV manufacturers, Government corporations, utilities and stakeholders. It will help improve the charging station setup process and can be beneficial.

Examples of EV manufacturing companies are Tata Motors, Hero Electric, and Ashok Leyland. They are laying the foundation in India.

They have established franchise networks throughout the country. Some of them also offer electric vehicle charging station dealerships. It is expected to generate revenue and lower the cost of EVs.

For example,

• Hero Electric has over 460 dealers

• Greaves has 400+ franchises, and

• Ather Energy has 36 dealers across India.

Value-Added Services

There is demand for electric vehicle charging stations and value-added services. Businesses can aim to provide the necessary support needed to maintain electric vehicles.

They can try to differentiate their offerings in the market. How? By providing electric vehicle charging station installations, maintenance, support, and charging accessories services. Complementary services also help increase user loyalty and satisfaction. Like valet parking and car wash.

For example, Exicom provides EV charging solutions. It includes charging stations, accessories, and free value-added services. The company offers set-up, maintenance, and support services for electric vehicle charging stations. It also provides ancillary products like charging cables and connectors.

How to Start Electric Vehicle Charging Stations Business in India?

The sector is growing with an increase in electric vehicle sales in India. It provides businesses with a unique opportunity to capture the market. To start an electric vehicle charging station in India, there are a few things you need to keep in mind:

• Approach electric vehicle companies. It’s necessary to obtain permission from authorities to install a charging station.

• Verify the installation areas like residential and commercial areas, main roads, and highways.

• Make sure you have a proper electricity connection and charging requirements. It will support the charging stations. For example, if you need 5KW or above of load, the utility company will mandate a 3-phase connection.

• You must-have components to install electric vehicle charging stations. Like charging station components, AC cable, etc.

• Do not forget to do the trial run.

Conclusion

To sum it up, the future of mobility is electrical. Indeed, brands investing in electric vehicle charging stations will gain a competitive edge. EV companies can make stronger connections with customers. It will also help them drive innovation and increase the transition towards sustainability.

Service providers like GrowthJockey provide advanced technologies to grow your online presence. They help brands build digital strategies that match user expectations.

The industry promises growth, and there’s a lot of scope to expand. With the right help, you can pave the way towards a greener and better future.

FAQs

1. How much is the expense to install electric vehicle charging stations?

The initial investment can cost quite a lot and may have a higher upfront cost. It depends on factors like installation location, type of charger, and infrastructure requirements.

2. Can anyone start an electric vehicle charging station business in India?

Yes. It can be a bit challenging and also requires a heavy investment at the beginning. But with the right resources and expertise, anyone can start an EV business in India.

3. What are some of the best areas for innovation in the EV industry?

There are some of the best areas for businesses to innovate in the EV industry. It includes: charging stations, infrastructure, batteries and auto driving tech.