India may need to invest Rs 1.05 lakh crore in the EV charging station industry by 2032 because 2.30 lakh such facilities are anticipated to be needed during that time. Credit rating agency India Ratings and Research (Ind-Ra) stated in its study that this huge investment will be necessary to meet the growing demand for EVs, which is predicted to increase at a compound annual growth rate (CAGR) of 39%, and the accompanying demand for power.
EV charging station business may require up to Rs 1.05 lakh crore investment by 2032
By 2032, the country is projected to need 2.30 lakh electric vehicle (EV) charging stations, requiring an investment of up to Rs 1.05 lakh crore. According to credit rating agency India Ratings and Research (Ind-Ra), this huge investment will be necessary to meet the rising demand for electric vehicles (EVs), which is projected to increase at a compound annual growth rate (CAGR) of 39%.
Additionally, commercial EV charging stations have a crucial influence in the adoption of these vehicles. According to Ind-Ra, the overall car industry’s EV penetration would rise from 4% this fiscal year to 40% by FY32. The government’s incentive programs, including the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and PLI (Production Linked Incentive) schemes for advanced chemistry cells, as well as its emphasis on extending the footprint of the electric charging infrastructure, could result in a secular increase in the demand for EVs.
To meet the rising demand for electricity needed to operate EVs, India will need to install approximately 63,000 charging stations over the next five years, investing a total of Rs 269 billion (Rs 26,900 crore). The nation may require 0.23 million charging stations in the next ten years in order to keep up with the growth in EV sales, which would require an expenditure of Rs 1.05 trillion by FY32.
Ind-Ra highlighted that it used internal projections of EV sales for the next 10 years and the percentage of EV owners across vehicles who would need access to charging stations to estimate the number of charging stations that need to be set up and the investment required for the same. In order to get a foothold in this expanding industry, a number of corporate and foreign competitors have begun investing in charging infrastructure.
Ind-Ra stated that according to official statistics, there were roughly 1,000 commercial charging stations in the nation for the fiscal year that concluded on March 31, 2022. It was predicted that as charging stations proliferated in India, both charging station operators (CSO) and manufacturers would see growth.