In recent years, the Indian government has been actively promoting green mobility. Besides the menace of pollution and climate change, green mobility is important from the point of view of energy security. With green mobility, the country can save millions of dollars that otherwise go into importing fossil fuels. The adoption of hydrogen-powered fuel cells and electric vehicles (EVs) has emerged as a critical component of the government’s efforts to promote green mobility. The Government of India has set a target for the adoption of 30 per cent electric vehicles by 2030. This ambitious target creates a huge opportunity for companies operating in the electric vehicles sector.
The government’s efforts to promote green mobility have resulted in several policy initiatives and incentives to increase the adoption of EVs. These incentives include tax exemptions, subsidies, and lower interest rates for loans. The government has also launched several schemes to encourage the manufacturing and use of EVs in the country, such as the FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) scheme.
Infrastructure challenge
One of the key challenges in the adoption of EVs is the lack of adequate charging infrastructure. The availability of charging infrastructure plays a crucial role in the growth of the EV market. A large percentage of customers are still reluctant to switch to EVs due to the lack of adequate charging infrastructure. In the past few years, there has been some improvement in the charging infrastructure in the big cities, however, there hasn’t been much change beyond these cities. Currently, there are more than 934 EV charging stations across India. However, for a large country like India, this number is not enough. Apart from the charging stations, dedicated charging facilities at workplaces and at residential complexes where even parking facilities is a big challenge, these charging facilities will be a challenging task.
The Indian government has recognised this challenge and has been actively working towards the development of a robust charging infrastructure. The National Electric Mobility Mission Plan (NEMMP) was launched in 2020 with the aim to establish a robust EV charging infrastructure across the country.
The challenge presents limitless opportunities
The push for green mobility presents a plush opportunity for the EV infrastructure sector. The development of a robust charging infrastructure is critical to the growth of the EV market. Although the EV infrastructure sector in India is still in the nascent stages, with the government’s push for green mobility as evident in various schemes, the adoption of EVs in the country is bound to increase. Consequently, the demand for EV infrastructure is also going to increase significantly. The GoI has a target of setting up one charging station every 25 kms on both sides of highways and roads. Considering the length of the roads in country, this presents a huge prospect for EV charging infrastructure companies.
The EV infrastructure sector comprises various players, including charging station manufacturers, operators, technology providers, and energy management companies. These players have a significant role to play in the development of a robust charging infrastructure. The government has also encouraged private investment, which has opened up prospects for private stakeholders to invest in the development of charging stations.
Development of a robust charging station requires significant investments in technology and infrastructure. The Indian government has recognised this and has been actively working towards creating a conducive environment for the growth of the EV infrastructure sector.
Additionally, the government’s push for green mobility has created potential for innovative solutions in the EV infrastructure sector. Start-ups and companies are developing innovative solutions to address the challenges in the said sector. For instance, some companies are developing mobile charging stations, while others are working on battery-swapping solutions. These innovative solutions have the potential to drive the growth of the EV infrastructure sector. It has also created opportunities for foreign players to enter the Indian market. Foreign players can bring their expertise and technology to the Indian market. Global experience and know-how will be critical in the development of a healthy EV infrastructure.
The GoI has set up ambitious targets for green mobility in the country. All the stakeholders in the EV industry need to come together to help the government achieve these targets. Development of a robust charging infrastructure is critical for the growth of the EV market. The government’s policy initiatives and incentives, along with private investment, have opened up huge potential for growth. The development of a reliable charging station would require sustained investments in technology, infrastructure, and human resources, which can create employment and contribute to the growth of the economy. In the coming years, the EV infrastructure sector in India is expected to witness significant growth.