Why Is India Adopting Electric Vehicle Supply Equipment in Abundance?
The Society of Manufacturers of Electric Vehicles (SMEV) states that the sales of two-wheeler electric vehicles (EVs) and four-wheeler EVs in India increased from 1,26,000 units in the financial year (FY) 2018–2019 to 1,52,000 in FY 2019–2020 and from 1,200 in FY 2017–2018 to 3,600 in FY 2018–2019. The increasing EV sales, on account of the rising public awareness about escalating air pollution levels, are creating a huge requirement for electric vehicle supply equipment (EVSE) in India.
Additionally, the increasing implementation of government policies supporting EV production and sales and EV charging station infrastructure will drive the Indian electric vehicle supply equipment market at an exceptional CAGR of 54.2% during the forecast period (2019–2025). According to P&S Intelligence, the market was valued at $1,027.9 thousand in 2019 and it will generate over $13,833.0 thousand revenue by 2025. For instance, the Phase II of the Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME) scheme has an outlay of INR 10,000 crore to support EV sales in India.
Presently, EVSE manufacturers in India are emphasizing on product launches, client wins, and partnerships to reach out to a greater number of end users. For instance, in November 2019, Magenta Power Pvt. Ltd. and Lodha Group, a real estate company, entered into a partnership to install ChargeGrid Pro, charging stations of the former, at the real estate project sites of the latter. EV component manufacturers, such as Delta Electronics Inc., Schneider Electric SE, and EV Motors India Pvt. Ltd., are also introducing new products and signing partnership agreements to reach out to an expanded clientele.
Geographically, the western region held the largest share in the Indian electric vehicle supply equipment market in 2019, owing to the mounting support of governments of several states, especially Gujarat and Maharashtra, toward the EV industry in their respective states. Besides, the high per capita income and the presence of major EV and EV component manufacturers will also contribute to the growth of the market in the region. Whereas, north India will showcase the fastest growth in the forecast years due to the enormous EV demand, on account of the poor air quality index in the region.
Thus, the burgeoning EV sales and rising number of government initiatives supporting the EV industry will create a huge requirement for EVSE in India.
