India Charges Ahead: The Race to Build Robust EV Infrastructure
As global momentum for electric vehicles (EVs) accelerates, India is stepping on the pedal to revamp its infrastructure, aiming to transform its automotive landscape from fossil fuels to clean energy. But the road ahead, experts say, is both electrifying and riddled with potholes.
Current Landscape: Progress Amid Challenges
India’s EV infrastructure is in its nascent stage but expanding rapidly. As of 2023, the country boasts over 12,000 public charging stations, a significant leap from just 1,000 in 2020. However, this remains a fraction of the 46,000 stations targeted by 2030 to support the government’s ambition of EVs constituting 30% of all vehicle sales by the end of this decade.
The backbone of this push is the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which has allocated ₹10,000 crore ($1.2 billion) since 2019 to subsidize EVs and fund charging infrastructure. States like Delhi, Karnataka and Maharashtra are leading the charge, offering additional incentives such as waived road taxes and subsidies for home chargers.
Innovation Sparks: Battery Swapping and Grid Upgrades
To address range anxiety and high upfront costs, India is betting big on battery-swapping technology, particularly for auto-rickshaws, buses and delivery fleets. In February 2023, the government unveiled a draft policy standardizing swap-compatible batteries, a move cheered by startups like Sun Mobility and major players like Reliance Industries, which plans to build swap stations nationwide.
Yet, challenges persist. Over 70% of India’s electricity still comes from coal, raising questions about the true environmental benefits of EVs. “Without a parallel renewable energy push, EVs alone won’t decarbonize transport,” warns Dr. Anjali Tandon, an energy analyst at TERI. The government counters this by highlighting solar-powered charging pilots in states like Rajasthan and Gujarat.
Private Sector Powers Up
Private companies are racing to fill infrastructure gaps. Tata Power aims to install 25,000 chargers by 2025, while startups like Ather Energy and BluSmart have deployed fast-charging hubs in tech-savvy cities like Bengaluru and Pune. Automakers aren’t far behind: Mahindra & Mahindra recently partnered with Shell to build 10,000 charging points, and Ola Electric is integrating hyperchargers with its upcoming gigafactory.
“Collaboration is key,” says MG Motor India’s CEO, Gaurav Gupta, whose company tied up with Finnish firm Fortum to deploy 50 kW fast chargers. “No single player can solve this alone.”
Roadblocks on the Highway
Despite progress, hurdles remain. Land scarcity in crowded cities complicates charger installation, while inconsistent state policies create confusion. For instance, Delhi mandates a charging station every 3 km, but rural areas lag. High battery costs also keep EVs out of reach for many, though prices are dropping—Li-ion batteries now cost 30% less than in 2020.
“Affordability and accessibility must go hand in hand,” says Niti Aayog’s Amitabh Kant. “Our focus is on commercial vehicles first, as they account for 70% of road emissions.”
Road Forward
India’s EV infrastructure journey is a marathon, not a sprint. With $6 billion invested in 2022 alone—half from private equity—the sector is buzzing. The International Energy Agency (IEA) projects India’s EV market to grow 40% annually this decade, contingent on sustained investment and policy clarity.
“We’re building an ecosystem, not just chargers,” says Tarun Mehta, CEO of Ather Energy. “By 2030, EVs won’t be a niche—they’ll be the norm.”
As the sun sets on fossil fuels, India’s electric dawn is within sight. But success hinges on one crucial element: keeping the current flowing.