Big Boost For Charging Stations Might Boost EV Sales In Future

The previous FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidies focused on incentivising purchase of electric vehicles in a bid to boost the segment. However, the latest PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement), which replaced the FAME scheme, is focusing more on the infrastructure for adoption of EV vehicles, especially chargers. In fact, ₹2000 crore has been set aside to improve the charging infrastructure by setting up 22,100 chargers for four-wheelers and 48,400 chargers for electric two-wheelers and three-wheelers.

The government is also now planning to subsidise charging stations as this will allow more private players to enter the fray, thereby boosting the charging infrastructure further. There are around 12,000 charging stations operational in our nation, but most of these are focused towards cars and predominantly found in fuel pumps. Another focus of the new scheme is to urge users to charge their vehicles during day time, when more clean energy is available by solar. For this reason, even charging rates will be cheaper during 9am to 4pm. The government is also pushing NHAI (national highways authority of India) and even Indian Railways to set up chargers stations. Another critical aspect is the localisation of the components of the chargers, as it will help the manufacturing sector.

The above push from the government for expanding the charging station infrastructure is a great initiative under the PM E-DRIVE. The critical aspect is the focus on improving the charging infra of electric two-wheelers and three-wheelers, as the above segment are the major contributors with respect to sales volume of the EV segment in India. The expanding charging infrastructure might push for faster adoptions of EVs as range anxiety and the lack of ample charging stations have been the biggest stumbling blocks for a prospective EV buyer.