Electric models are expected to account for 13-15% of India’s total two-wheeler volume by FY25, but the country’s charging infrastructure needs to be strengthened to achieve a healthy electric vehicle (EV) penetration, ratings agency Icra said on Wednesday.
According to Accra, the share of electric models is also expected to increase in total three-wheeler and bus volume in FY25. The penetration of electric three-wheelers and electric buses is forecast to be more than 30% and 8-10% respectively.
Recent data released by the Federation of Automobile Dealers Association (FADA) shows that the total retail sales of EVs in FY22 increased by 218.36% compared to FY21. According to the department, passenger vehicles grew by 257.18%, two-wheelers by 463.61%, three-wheelers by 101.23% and commercial vehicles by 450.75%.
Although the charging infrastructure is currently in its infancy with less than 2,000 public charging stations in India, most of which are concentrated in a few states, Icra expects to add about 48,000 charging stations in the next three to four years. 14,000 crore.
“India is lagging behind in terms of EV charging infrastructure. However, like most global rivals, India has also stepped up its policy to increase the number of EV charging stations. To take advantage of potential opportunities in space, a number of PSUs and private players have also announced plans to charge infrastructure, ”said Shamsher Dewan, vice president and group head, Ikra.
The Central Government has approved about 520 charging stations in India (FAME India) under the first phase of rapid adoption and production of electric vehicles (hybrid O) at a cost of Rs 43 crore. Under the second phase, the Ministry of Heavy Industries has sanctioned Rs.
ICRA said the central government has actively amended the guidelines for charging for infrastructure development in the country and is subsidizing the collection of electricity for several state charging stations.
However, EV charging infrastructure business capital intensive and even excluding land, the initial advance cost is estimated at Rs 29 lakh, without subsidy, the rating agency said, the operating cost is more than 10 lakh / year, which makes the use of resources important. The rating agency estimates that it will take about four years for the EV charging station to break down based on current expectations of EV infiltration and consistent resource utilization (30% in four years) without any subsidy calculations.
“Battery-swapping is an alternative solution rather than a development for EV charging infrastructure, especially for commercial applications. It is also in its infancy in India. Battery replacement is convenient – it is a fast way to recharge a vehicle and is cost and time-efficient. “Because battery ownership is replaced by battery leasing, battery life is projected to increase due to controlled charging conditions. However, ensuring interoperability, adequate financing and maintaining adequate battery inventory can be challenging,” Dewan said.