Tata Power Halts EV Charging Station Expansion As Utilisation Remains Below 5%: Report

India's leading electric vehicle (EV) charging infrastructure provider Tata Power has temporarily suspended its aggressive expansion plans for public charging stations, citing extremely low utilisation rates across its current network, Moneycontrol has reported. The energy giant's existing 5,500 public charging stations are operating at less than 5 per cent capacity, prompting a strategic pause in deployment.

Current Charging Infrastructure

India currently operates 29,277 EV charging stations. Karnataka maintains its leadership position with 6,097 stations, followed by Maharashtra's 4,155 stations and Uttar Pradesh's 2,326 installations.

Also read: Delhi, Maharashtra, Chandigarh Top Niti Aayog's Electric Mobility Index

Expansion Goals Put On Hold

The company had previously announced in August 2023 its intention to dramatically scale up operations, targeting at least 25,000 public charging stations by fiscal year 2028. However, slower-than-anticipated electric vehicle adoption across India has forced a reassessment of these expansion timelines.

Tata Power CEO Praveer Sinha was quoted as saying by Moneycontrol that while the infrastructure foundation remains solid, market demand has not materializsed as projected.

"The only thing is that the penetration of electric vehicles has not happened to the extent we were expecting. If tomorrow, we see an increase in the penetration of electric vehicles, we'll be able to cater to that. The groundwork has been done… We continue to be the biggest player in the EV charging market with 5,500 public chargers, 1.2 lakh home chargers and 1,200 bus chargers," Sinha said.

Infrastructure Challenges Emerge

Tata Power's decision reflects broader challenges facing India's EV charging sector. The company's pause signals potential industry-wide concerns about premature infrastructure investments outpacing actual vehicle adoption rates.

This trend extends beyond private sector initiatives. Karnataka state, which leads India in EV infrastructure development, recently abandoned plans to establish 2,500 new charging stations statewide due to insufficient interest from private sector partners.

EV Adoption Falls Short

Recent government data highlights the gap between policy aspirations and market reality. According to a Niti Aayog report released on August 4, electric vehicles comprised only 7.6 per cent of total vehicle sales in 2024, significantly trailing the government's 30 per cent target for 2030.

The policy think tank noted that achieving this ambitious goal would require India to increase EV market share by over 22 percentage points within just five years, after taking nearly a decade to reach current levels.

"India is doing well with electric two-wheelers and electric three-wheelers. With regard to electric buses, it has made some progress but with electric cars it has been slow," read the Niti Aayog report.

Infrastructure Investment Plans

Despite private sector hesitation, authorities continue pushing forward with charging infrastructure development. The PM E-Drive scheme allocates Rs 2,000 crore for installing 72,000 public EV chargers by the end of fiscal year 2026.

These installations will strategically target high-traffic locations including 50 national highway corridors, metropolitan areas, toll plazas, railway stations, airports, fuel outlets, and state highways.