The market share for electric cars (EV cars) in India is growing rapidly and in the upcoming years it has been estimated that the market will grow by 66%. With this growth, the demand for electric car charging stations will also increasing across the country. So if you are in the north, south, or east and west of India, you will find that the demand to open an electric car charging station is the first priority and a good business opportunity.
Those were the days when 1 or 2 charging points were enough, but now as the demand of EV cars are high, to full-fill it or to reduce waiting time at the stations… more charging stations are required at different spots each and after 5-10 km range just like a petrol pump network.
So from business point of view, opening an electric charging station in your area at different points is a smart move and If you are looking at opportunities in this emerging sector, this comprehensive guide will help you set up your own electric car charging station in India.
1. Market Research and Planning
The very first thing, you have to do an analysis of the EV car market in your area or city. For this you have to do a small survey in your are and check for new local new. Your research should cover…
- Is the demand for charging stations increasing in your locality?
- Which types of vehicles are popular – two-wheelers, three-wheelers, or four-wheelers?
- What’s the status of fast charging?
- What is Charging cost or Competitors are charging?
This information will help you design your business model in better way and you can decide best. And once you know there is opportunity for EV car charging stations, you can proceed for next!
2. Location selection
The success of your EV car charging station will largely depend on its location. Choose a location that is more visible and easily accessible for EVs. Some ideal locations are:
- Near highways
- Parking areas of shopping malls
- Close to restaurants and cafes
- Residential areas with high EV density
- Office complexes
- Hotels and resorts
Remember, space constraints can be a major challenge in urban areas in India. So, contact the local municipal corporation or development authority to ensure that your selected location is suitable for commercial use.
3. Permissions and approvals
In India, there are no specific licenses required for an electric car charging station. This has been mentioned on cleartax.in website too that no license is needed to establish an EV car charging station, but compliance with technical standards is mandatory and hence you will need to obtain some important permissions and approvals:
- Business license from the local municipal corporation or panchayat is required.
- Compliance with technical standards set by the Ministry of Power, Government of India
- A dedicated EV charging station power connection from your local electricity distribution company (DISCOM)
Also, if you want to use alternative energy solutions like solar power, diesel generator you will need to obtain additional permissions from the relevant departments.
4. Setting up the charging station
Now you can move on to the actual installation of your charging station. Here are some important points:
a) Charging equipment: Select a reputed manufacturer for certified charging stations. Consider providing a mix of AC and DC fast chargers to cater to different types of vehicles and charging requirements. Standards like CCS2, CHAdeMO, and Bharat AC-001 developed in India are important for the Indian market.
b) Infrastructure: Provide adequate parking space, clear signage, proper lighting for EVs. Also consider additional facilities like toilets or grocery stores to enhance the customer experience.
c) Software and payment solutions: Develop a user-friendly mobile app that allows customers to find, book, and pay for charging stations. Offer various payment options such as Cash, UPI, credit/debit cards, and digital wallets.
d) Safety measures: Install fire safety equipment and ensure regular safety checks. Train your staff in emergency response procedures.
5. Government incentives and schemes
The Indian government is promoting the development of EV charging infrastructure and they have announced about it in the interim budget of 2024. Subsidies and infrastructure grants are available for setting up EV car charging stations under the FAME India Scheme Phase II.
Explore these programs as they can help reduce your setup costs.
Apart from that, some local or state governments are also offering additional incentives. For example, the Delhi government recently announced a new EV policy that offers special discounts and assistance to those setting up charging stations. This gives confidence to a businessman and they offer the facility to customers.
6. Franchise opportunities
If you don’t want to take whole risk or avoid paperwork, then opting for well-established franchise is a very good move. If you prefer a more structured approach, many established companies offer EV charging station franchises. Consider this option if you want branding and support.
Some of the major players include EESL, Tata Power, and Ather Energy. You can contact anyone and open charging station powered by this this franchise in your area and earn a good amount of profit!
7. Marketing and Customer Attraction
Develop a strong marketing strategy to promote your charging station in your area. Use social media platforms like WhatsApp, Facebook, Instagram, Google Ads, Local Digital NewsPaper to engage with local EV communities.
You can even partner with EV car dealerships, car shops, or electric car mechanics. Consider launching a customer loyalty program that rewards regular users.
8. Future Planning
With rapid changes in technology and market demands, be prepared to adapt your business. Keep an eye on innovations such as battery swapping technology, smart grid integration, and integration of renewable energy sources. This way you can be in the game and stay ahead from the competitors.
Conclusion
Opening an electric car charging station in India might be a challenging but it is one of the profitable venture. By planning carefully, choosing the right location in you area, and investing in the latest technology, you can establish a successful business in this fast-growing industry.
As per the current data, an EV charging station unit costs between Rs 1 – 14 lakh. The slower one AC charging station costs less, while the setup cost of Fast DC charging stations will vary from 2.5 Lakh to 14 Lakh and this will include Type 2, CHAdeMO, and CCS.
Further the land cost, connections and energy meters, civil work, technical team for maintenance, marketing promotion, and software management to calculate charging units and to accept payment via UPI or Credit/Debit card, this all need huge investment of around 30-35 Lakh
So overall the final cost to setup an electric car charging stations with all facilities will vary from Rs 1.5-50 Lakh. And if you have installed your charging station at right location then you can easily cover this cost in 1 year with profit!
Remember, flexibility and innovation are required as the EV sector is constantly evolving. Keep yourself updated, pay attention to customer feedback, and be ready to adapt your business according to the changing needs of the market. This way, you will not only build a successful business but also contribute to India’s clean energy future.
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