New Delhi, India – August 14, 2024: The electric vehicle (EV) infrastructure market in India is witnessing unprecedented growth, as highlighted in the latest report on India’s EV infrastructure potential by Forvis Mazars in India. The number of public Battery Electric Vehicle (BEV) charging stations expanded significantly from 1,800 in February 2022 to 16,347 in March 2024, marking nearly a ninefold increase. This robust infrastructure expansion is crucial as it aligns with the increasing demand for EVs driven by heightened environmental awareness, rising fuel prices, and supportive government incentives, setting the stage for a more sustainable transportation future.
Rohit Chaturvedi, Partner, Transport and Logistics sector leader, Government, Infrastructure and Development Sector Advisory Services, Forvis Mazars in India, said, “India needs to scale up public charging infrastructure to meet the growing demand and reduce range anxiety. By 2030, electric vehicles are projected to make up almost one-third of India’s passenger vehicle market, highlighting the significant infrastructure requirements. At Forvis Mazars in India, we are committed to supporting this transformative journey, leveraging our expertise in advisory services to help build a sustainable and efficient EV ecosystem in India.”
Rising EV sales and charging infrastructure:
Global electric car sales surged by 27% from 2022 to 2023, reaching 13.09 million vehicles. This rapid increase underscores the critical need for a robust charging infrastructure to support the growing number of EVs, which totalled more than 40 million by 2024.
India’s EV growth and key drivers:
EV sales in India tripled in the last fiscal year, particularly in the two-wheeler (2W) and three-wheeler (3W) segments. The four-wheeler (4W) segment also shows substantial promise with several new model launches expected. 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.
Charging infrastructure development:
India’s charging infrastructure demands are unique due to the dominance of 2Ws and 3Ws, which primarily utilise AC slow charging and battery swapping. In contrast, 4Ws and buses require a mix of AC and DC charging solutions. Home and workplace charging is expected to dominate for private 2Ws and 4Ws, while commercial fleets will rely on private depots or public charging networks. DC fast chargers will cater to the growing demand for public charging as the 4W EV stock increases
Market potential:
By 2030, India is projected to have around 50 million EVs on its roads, with a market size expected to reach US$48.6bn. To achieve a ratio of 1-40 EVs to charging infrastructure, India will need to install over 400,000 chargers annually, totalling 1.32 million chargers by 2030.
Government policies:
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provides incentives for EV adoption and charging infrastructure growth. The Ministry of Heavy Industries approved 2,877 EV charging stations across multiple states and 1,576 stations on 16 highways and 9 expressways. The Ministry of Housing and Urban Affairs (MOHUA) targets semi-public charging at 20% of all vehicle holding capacity, with additional power load requirements for premises.
The Forvis Mazars in India’s report highlights the significant strides India is making in expanding its EV infrastructure. With projections indicating nearly one-third of India’s passenger vehicle market will be electric by 2030, the focus on scaling up public charging infrastructure is paramount. Forvis Mazars in India remains dedicated to aiding this growth through expert advisory services, ensuring India can meet its ambitious EV targets and support a sustainable future.
