The electric vehicles are set to revolutionise India’s transport system. A recent report by the Federation of Indian Chambers of Commerce and Industry (FICCI) states that India will need to pump in Rs 16,000 crore to build enough public charging stations for electric vehicles by 2030. It will take this investment that the government can easily ensure it has successfully realized making electricity power beyond 30% in the country vehicles.
FICCI’s Vision for EV Infrastructure in India
Much-publicized FICCI report: “FICCI EV Public Charging Infrastructure Roadmap 2030.” The report suggests that there should be strategic investment and planning in light of the increasingly higher numbers of electric vehicles which will come into use all over India. The central theme of messages from the roadmap lies in expanding and upgrading the public charging network to facilitate the rapidly rising number of electric vehicles envisioned to make Indian roads glow.
The report underlines that scaling up the infrastructure will be efficient only by focusing on the maximum utilization of charging stations. To realize this, India needs to focus on charging stations in the top 40 cities, which would experience the highest adoption rate of electric vehicles in the next 3-5 years. This is based on current EV adoption rates and state policies that are favorable and encourage electric vehicle usage.
Investment and Demand for EV Charging Infrastructure
FICCI said that India needs to make huge capital investments in charging infrastructure to achieve over 30% electrification by 2030. The needed amount of Rs 16,000 crore will meet the demand for public charging stations and support adoption of EVs.
Then, charging infrastructure development would be contingent upon how successfully the demand and supply side enablers, better accessibility to charging points, availability of cheap electric vehicles, and regulations by the government support both aspects.
Government Support and Incentives
According to FICCI, growth in electric vehicles in India is based on some interdependent factors such as the economics, improvements in battery technology, supportive regulations, supply chain improvements, and state of charging infrastructure.
Regulatory initiatives and incentive schemes were implemented by the Indian government to further the adoption of EVs. For example, the FAME II scheme that ended in 2023-24 was replaced by the PM E-DRIVE scheme valid up to 2025-26. The new scheme enjoys the benefits of subsidies on electric two-wheelers and three-wheelers, E2Ws/E3Ws at the same rate of Rs 5,000/kWh. On the other hand, an incentive of up to Rs 10,000/kWh is allowed for electric buses. This would make EVs an affordable proposition for consumers themselves.
Moreover, the Goods and Services Tax (GST) rates on EVs are significantly lower at 5% than those applied to ICE vehicles, which range from 28% to 50%. Higher import taxes have also been levied by the government on components and vehicles of EVs for the purpose of encouraging local production and discouraging imports.
State-Level Incentives for Electric Vehicles
Indian States. In addition to the above-mentioned national schemes, incentive packages had also been developed at the states level for fastening electric vehicle adoption for the above reasons. These included tolls and tax expositions, privileged electricity costs to electric vehicles, a share of infrastructural subsidization, and low-value loans to acquire electric vehicles. Such incentives at the state level will make acquiring electric vehicles even more affordable to buyers further developing the EV market.
The Need for Financial Support for Electric Four-Wheelers
Though adoption of electric two and three wheelers is witnessing a rapid increase in the country, FICCI feels that financial support need to be increased for quickening electric four wheelers or E4Ws adoption. The report feels that it may take a bit of more incentives and subsidies making E4Ws affordable to the common consumer so penetration of electric cars will have the greater impact in the country’s growing automobile market.
Standardization of GST rates on EV charging services
Standardizing GST rates for EV charging services, FICCI also suggests. Presently, GST rates for the same stand at 18%, much more higher than 5% GST levied on electric vehicles itself. This would ensure that tax rates on charging services come in line with those all along the EV value chain, streamlining the industry further and promoting investment in the area of charging infrastructure.
Conclusion:
Coming ahead will be massive growth in electrical vehicle sectors in India, and that demands attention to its charging infrastructural areas too. FICCI has released a report which reflects the critical demand of investment of Rs 16,000 crore up to 2030. With continued government support, state incentives, and strategic planning, India can attain its 30-40% electrification of vehicles goal by 2030. This is going to bring electric mobility to millions of Indians.
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Also read : Electric Vehicle Sector in India Poised for $40 Billion Investment Surge by 2030