SWOT Analysis of EV charging stations

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It is necessary to understand the factors that an EV charging station must account for to make good financial sense and to serve the users in the optimal manner

The Confederation of Indian Industry (CII) estimated this year that India would need about 1.32 million EV chargers by 2030. At around 9,000, a tenth of India’s petrol pumps also now offer EV charging. However, when it comes to standalone chargers, not all locations will be suitable, and not all the charging stations will perform equally on utilisation rates and financial returns.

Fig. 1: A BPCL petrol pump that will offer eventually EV charging | Image: The Statesman

A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is therefore necessary to understand how best to optimise their siting. This article explores the several factors that an EV charging station must account for to make good financial sense and to serve the users in the optimal manner.

Strengths of EV Charging Stations

Growing demand
EVs currently account for around 7% of all new vehicle sales in India but the figure used to be next to nil only about 10 years ago. The growth of electric 2Ws and 3Ws has especially been impressive at more than 100% y-o-y as businesses in particular adopt them to lower their operational costs. Electric cars will also get a boost with the launch of Maruti’s eVX in 2024 and Tata Motors’ expanded electric lineup.Besides, the heavy vehicle category will undergo a strong expansion as well, as the PM e-Bus Sewa scheme gets underway to add 10,000 e-buses to Indian roads by 2030. The scheme will be supplemented by individual cities and states adopting their e-bus and e-truck targets, such as Delhi’s plan to add 8,000 electric buses to its fleet by 2025.

Fig. 2: Delhi’s electric bus fleet is set to grow by another 8,000 units by 2025 | Image: Business Standard

These applications will require ready access to charging stations, and the future of mobility in India is decidedly electric.
Convenience of siting
EV charging stations can be sited at locations that are difficult for petrol pumps. These include sites inside malls, shopping centres, office complexes and residential communities.
Lower carbon footprint
The charging stations can lower the carbon footprint of EVs if they are run exclusively on renewable energy. Solar-powered station hubs are not uncommon in the west, and India’s expansion plans for clean energy (500 GW by 2030) would be the perfect complement to its network of EV chargers.

Weaknesses of EV Charging Stations

Competition from petrol stations
EVs still only make up around 7% of India’s auto sales and the country added 18,852 petrol pumps between 2011 and 2017 to account for the growing number of new ICE vehicles. This trend will likely continue as India’s vehicle ownership expands from the current figure of only about 1 in 12 individuals.New investments may therefore be channelled into the additional petrol pumps instead. Also, like the Tesla Supercharging station in Harris Ranch, California, the stations may themselves be powered by diesel to facilitate round-the-clock operations, which may lower the operational cost but eat into the facility’s carbon footprint.

Fig. 3: Tesla’s Supercharger station in Harris Ranch is powered by diesel fuel | Image: Cowboy State Daily
Competition from other stations
As EVs become more popular, more charging stations will be set up and each will attract a certain number of EV users. The “footfall” to each station will thus drop and likely affect its overall returns.

Opportunities

Government incentives
The Indian government has made it possible for any individual or private entity to set up EV charging stations. Also under FAME II, each public charging station is eligible for up to Rs. 6 lakh in subsidies, and the Gujarat state government covers up to 25% of the equipment costs for all public EV charging stations. These incentives are therefore designed to encourage public and private investments and can result in good financial returns if the siting and the density of the chargers are planned properly.
Net metering and supplemental income
Ideally all EV charging stations should be powered by solar panels that are backed up by battery storage. This would open up the possibility of feeding the excess power generated by the panels back to the grid through the local net metering mechanism. Similar to the Centre’s KUSUM scheme for farmers, EV charging stations could supplement their revenues through this mechanism and also feed clean energy to the grid.

Fig. 4: Solar-powered EV charging stations are ideal for net-metering applications | Image: Electrek

Threats

With EVs as the future, the only real threat to the charging stations comes from the EVs themselves. At the moment there is a lot of progress on solid state batteries that could as much as double the vehicles’ driving range. As and when they become ubiquitous, it would translate to less frequent stops at the charging stations for each EV.

While this may be countered by an absolute growth in EV numbers, the charging technology may also move towards battery swapping. The technology makes sense for India’s E2Ws and E3Ws as they can be recharged with a swapped battery pack in less than 5 minutes, versus having to charge for upwards of 20-30 minutes. India’s first battery swapping station in Jaipur is already a step in this direction.

Overall, EV charging stations are set to expand majorly in the country. The Indian EV market is expected to reach 1.9 million units by 2030 – the actual numbers may be higher – and the charger operators may have to adapt their operations to changes in the vehicles’ technologies. However, with electric cars and heavy duty vehicles also starting to gain greater market shares, there is every room for charging and swapping stations to co-exist.

EV Segment	Demand Incentives
Electric 2-wheeler	Purchase incentive of Rs. 5,000/- per kWh of battery capacity; Maximum incentive of Rs. 30,000/- per vehicle Incentive for scrapping and de-registering old ICE two wheelers registered in Delhi: Up to Rs. 5,000/- of the incentive shall be reimbursed by the GNCTD All delivery service providers shall be expected to convert 50% of their fleet operating in Delhi to electric by 3V March, 2023 and 100% by 31st March, 2025.
E-Autos	Open permit system shall be applicable & be given on first-come-first-serve basis; no cap on permits issued to e-autos in Delhi Purchase Incentive of Rs. 30,000/- per vehicle shall be provided by GNCTD Interest subvention of 5% on loans and/or hire purchase scheme for the purchase of an e-auto Incentive for scrapping and de-registering old ICE auto rickshaws registered in Delhi: Up to Rs. 7,500/- of the incentive shall be reimbursed by the GNCTD The auto-rickshaw permits linked to the de-registered ICE vehicle can be surrendered and exchanged for an e-auto permit at no additional cost.
E-rickshaws & E-carts	Purchase Incentive of Rs. 30,000/- per vehicle shall be provided by GNCTD Interest subvention of 5% on loans and/or hire purchase schemes Buses
E-buses	Pure electric buses shall constitute at least 50% of all new stage-carriage buses (i.e., for all public transport vehicles with 15 seats or more) procured for the city fleet including for last-mile connectivity Induction of 1000 pure electric buses by 2020
Goods Carriers	A Purchase Incentive of Rs. 30,000/- to the first 10,000 e-Carriers to be registered in Delhi after the issuance of this policy. Interest subvention of 5% on loans and/or hire purchase schemes. Incentive for scrapping and de-registering old ICE goods carriers registered in Delhi: Up to Rs. 7,500/- of the Incentive shall be reimbursed by the GNCTD Goods carriers (i.e., L5N and N1 type)
Four wheeler	Purchase Incentive of Rs. 10,000/- per kWh of battery capacity Maximum incentive of Rs. 1,50,000/- per vehicle to the registered owners of the first 1000 e-cars to be registered in Delhi after the issuance of this policy

Vehicle Segment	Battery Size in KWH (approx.)	State Subsidy Amount(Rs.)	Total State Subsidy (Rs.)	Maximum ex-factory price to avail incentive (Rs.)
Electric Two wheeler	2 KWH	10000/- per kWh	20000/-	1,50,000
Electric Three wheeler	5 KWH	10000/- per kWh	50000/-	5,00,000
Electric Four wheeler	15 KWH	10000/- per kWh	150000/-	15,00,000

Sr No	Vehicle segment	Number of EVs	State subsidy
1	2W	100	Rs.10,000/- per Kwh of battery capacity subject to a maximum of Rs.30,000/- per vehicle.
2	3W	50	Rs.10,000/- per Kwh of battery capacity subject to a maximum of Rs.50,000/- per vehicle.
3	4W	50	Rs.10,000/- per Kwh of battery capacity subject to a maximum of Rs.2,00,000/- per vehicle

Sr. No	Owner of PCS	Subsidy
1	Retail Outlet of Oil Marketing Companies	15% of the cost of putting up Public Charging Infrastructures and Stations will be reimbursed by the State Govt. in the form of subsidy/ incentive.
2	Local Entrepreneurs	25% of the cost of putting up Public Charging Infrastructures and Stations will be reimbursed by the State Govt. in the form of subsidy/ incentive

Sr No	Vehicle segment	Ceiling for Early Bird	2023 – 2027
1	2W	35	172
2	3W(E-Rickshaw/ E-Cart)	10	40
3	3W	10	40
4	Car(Including Taxis)	40	167
5	Bus	11	49
6	E-4w ([CV, Stage Carriage/Maxi Cabs)	10	41
Total	–	116	509

SWOT Analysis of EV charging stations

Aniruddha Bhattacharjee

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5 kWh

Sr No	Vehicle Segment	Subsidy (Whichever Is Lower)	Maximum ExShowroom Price to Avail (INR)
1	Two-Wheeler	10% of the Ex-Showroom Price or INR 15,000	1,50,000
2	Three-Wheeler – e Rickshaw / e-cart	10% of the Ex-Showroom Price or INR 30,000	3,00,000
3	Three-Wheeler	10% of the Ex-Showroom Price or INR 50,000	5,00,000
4	Car	10% of the Ex-Showroom Price or INR 2,50,000	25,00,000
5	Bus	25% of the Ex-Showroom Price or INR 50,00,000	2,00,00,000
6	E-4w ([CV, Stage Carriage/Maxi Cabs)	10% of the Ex-Showroom Price or INR 3,00,000	30,00,000

Sr No	Vehicle Segment	Subsidy (Whichever Is Lower)	Maximum ExShowroom Price to Avail (INR)	No of EVs to be subsdised
1	Two-Wheeler	20% of the Ex-Showroom Price or INR 60,000	1,50,000	28
2	Three-Wheeler – e Rickshaw / e-cart	20% of the Ex-Showroom Price or INR 60,000	3,00,000	10
3	Three-Wheeler	20% of the Ex-Showroom Price or INR 1,00,000	5,00,000	10
4	Car	20% of the Ex-Showroom Price or INR 5,00,000	25,00,000	33
5	Bus	50% of the Ex-Showroom Price or INR 1,00,00,000	2,00,00,000	11
6	E-4w ([CV, Stage Carriage/Maxi Cabs)	20% of the Ex-Showroom Price or INR 6,00,000	30,00,000	9
Total				101

Sr. No	Classification of EV	2022-23	2023-24	2024-25	2025-26	2026-27	Total
1	2W	2,000	8000	20,000	54,000	85,000	1,69,000
2	3W	200	800	2000	4,000	10,000	17,000
3	4W(Non Commercial)	100	400	1400	3,000	7,000	12,000
4	4W(Commercial)	10	40	100	300	650	1,100
5	Buses	10	25	65	200	600	900
	Total						2,00,000

Vehicle Category	Incentive	Maximum Incentive	Number of Electric Vehicles to be incentivized
e-Bicycle	Upfront: 25% of Cost of Bicycle	Rs. 3,000	First 25,000 Bicycle purchased during the policy period
e-2W	Upfront : Fixed Battery: Rs. 5,000/kWh Swappable Battery: Rs. 3000/kWh Scrapping : Rs 5,000	Rs. 30,000 Rs. 15,000 Rs. 5,000	First 10,000 vehicles registered during the policy period
e-Cart	Upfront : Fixed Battery: Rs. 5000/kWh Swappable Battery: Rs. 3000/kWh Retrofit Kit: 15% of cost	Rs. 30,000 Rs. 10,000 Rs.10,000	First 1000 e-Carts registered during the policy period
e-Autos	Upfront : Fixed Battery: Rs. 5000/kWh Swappable Battery: Rs. 3000/kWh Retrofit Kit: 15% of cost Scrapping : Rs 7,500	Rs. 30,000 Rs. 15,000 Rs. 15,000 Rs. 7,500	First 1000 e-Autos registered during the policy period
e-Goods Carrier L5N	Upfront : Fixed Battery: Rs. 5000/kWh Retrofit Kit: 15% of cost Scrapping: 15,000	Rs. 50,000 Rs. 15,000 Rs. 15,000	First 1000 Goods Carrier L5N registered during the policy period
e-Goods Carrier N1	Upfront: Fixed Battery: Rs. 5000/kWh Retrofit Kit: 15% of cost Scrapping: 15,000	Rs. 80,000 Rs. 25,000 Rs. 15,000	First 1000 Goods Carrier N1 registered during the policy period
4 W- e-Cars (Personal)	Upfront: Fixed Battery: Rs. 5,000/kWh Scrapping: 7000	Rs. 1,50,000 Rs. 7,000	First 2000, 4 W- e-Cars (Personal) (including Hybrids as defined in FAME II) registered during the policy period. Applicable only for vehicles with ex showroom price below INR 20 lakhs
4 W- e-Cars (Commercial)	Upfront: Fixed Battery: Rs. 10,000/kWh Scrapping: 7000	Rs. 2,00,000 Rs. 7,000	First 1000, 4 W- e-Cars (Commercial) (including Hybrids as defined in FAME II) registered during the policy period

Vehicle Category	Early Bird Incentive	Maximum Early Bird Incentive
e-Bicycle	Rs. 2000	Rs. 2,000
e-2W, e-Cart, e-Autos, e Goods Carrier (L5N and N1), e-4W (personal & commercial)	Rs 3,500/kWh	Rs. 50,000

Category	Incentive	Maximum Incentive
Private Charging	Infrastructure Incentive: Grant on purchase and installation of charging equipment	Rs. 6,000	Only for the first 30,000 private chargers installed during the policy period.
Public Charging	Reimbursement of GST paid 100% reimbursement of GST paid on the Fast Charging/Swapping Electric Vehicle Supply Equipment (EVSE) procured by private enterprises/individual	Rs. 50,000	Only for the first 50 fast charging /Swapping EVSE installed during the policy period. (Will not be applicable on Chargers under Central Subsidy)
	Upfront electricity infrastructure: Upfront cost on infrastructure for bringing power supply to Electric Vehicle Charging Station	Rs. 5,00,000	Only for the first 50 Public fast Charging/Swapping Stations installed in the state during the policy period. (Will not be applicable on Chargers under Central Subsidy)
	Electricity Duty Exemption: 100% Electricity duty exemption for Public Charging and Swapping stations	For policy period	For policy period

Sr. No	Vehicle segment	Incentive available	Number of vehicles to be incentivised	Maximum incentive per vehicle
1	e-2W (L1 & L2)	INR 5000/kwh	1,00,000	10,000
2	e-3W autos (L5M)	INR 5000/kwh	15,000	30,000
3	e-3W goods carrier (L5N)	INR 5000/kwh	10,000	30,000
4	e-4W cars (M1)	INR 5000/kwh	10,000	1,50,000
5	e-4W goods carrier (N1)	INR 5000/kwh	10,000	1,00,000
6	e-buses* (SRTu)	10% vehicle cos (ex factory)	1000	20,00,000

Road Tax / Vehicle Registration Fees	Manufactured within the State	Manufactured outside the State
Exemption on Road Tax	100% exemption for first 10,000 buyers 75% exemption for 10,001-15000 buyers 25 % exemption after 15000 buyers upto policy period	25% upto policy period
Exemption from Vehicle Registration Fees	100% exemption for first 10,000 buyers 75% exemption for 10,001-15000 buyers 25 % exemption after 15000 buyers upto policy period	25% upto policy period

S No	Type of PCS/SPCS	Incentive amount	Maximum Incentive available per PCS/SPCS	Max number of PCS/SPCS to be incentivised
1	Slow	60% of the cost	INR 10,000	15,000
2	Moderate/Fast	50% of the cost	INR 5,00,000	500
3	Solar Based fast#	70% of the cost	INR 7,00,000	500

Type of Unit	Max Limit	Max Admissible Subsidy
Micro	30% of FCI	Rs 2 Cr
Small		Rs 7 Cr
Medium		Rs 15 Cr
Non MSME		Rs 30 Cr

Criteria	Threshold Value
Min. top speed	40km/hour
Min. acceleration	0.65m/s2
Max. electric energy consumption	Not exceeding 7kWh/ 100km
Warranty	At least 3 years comprehensive warranty including that of battery from the manufacturer

Incentives Description	Incentives
Assured Buyback	6% of total vehicle cost capped at INR 10,000/-
Battery warranty of at least 5 years	4% of total vehicle cost capped at INR 6,000/-

Vehicle Segment	Max vehicle to be supported	Approx. battery size	Approx incentive @10,000 per kWh
Electric 2 wheeler	24,000	2 kWh	20,000/-
Electric 3 wheeler	70,000	5 kWh	50,000/-
Electric 4 wheeler	4000	15 kWh	150,000/-
4 wheeler (SHEV)	1000	1.3 kwh	13,000/-
Electric bus	1000	250 kwh	25,00,000/-

Criteria	Threshold value
Min. top speed	40 km/hr
Min. acceleration	0.65 m/s2
Max. electric energy consumption Not exceeding	7 kWh/100km
Warranty	At least 3 years comprehensive warranty including that of battery from the manufacturer

Sr No	Vehicle Segment	Incentives
1	Assured Buyback,	6% of total vehicle cost capped at INR 10,000/-
2	Battery warranty of at least 5 years	4% of total vehicle cost capped at INR 6,000/-

Category of vehicle	% Of subsidy	The maximum amount of subsidy
Electric Two-wheelers	15%	Rs. 5000/-
Electric Three-wheelers	15%	Rs.12,000/-
Electric Four Wheelers	15%	Rs. 1,00,000/-

Vehicle Segment	Incentive Available ( INR)	No. of Vehicles to be Incentivized	Maximum Incentive per Vehicle (INR)
Electric Two Wheeler (L1 & L2)	5000/kwh	1,00,000	10,000
Electric 3 Wheeler autos (L5M)	5000/kwh	15,000	30,000
Electric 3 Wheeler goods carrier (L5N)	5000/kwh	10,000	30,000
Electric 4 Wheeler cars (M1)	5000/kwh	10,000	1,50,000
Electric 4 Wheeler goods carrier (N1)	5000/kwh	10,000	1,00,000
Electric buses	10% of vehicle Cost	1,000	20,00,000

Vehicle Segment	Scrappage Incentive
Electric Two-Wheeler	INR 7,000
Electric Three-Wheeler	INR 15,000
Electric Four Wheeler	INR 25,000

CHARGING STATION	Incentive
Small Charging Stations	Capital Subsidy of 25% of the value of the charging equipment/machinery for first 300 charging stations up to a Maximum subsidy of INR 1,50,000
Medium Charging Stations	Capital Subsidy of 25% of the value of the charging equipment/machinery for the first 100 stations up to a Maximum subsidy of INR 2,00,000.
Large Charging Stations	Capital Subsidy of 25% of the value of the charging equipment/machinery for the first 100 stations up to a Maximum subsidy of INR 10,00,000.

Vehicle Segment	State Subsidy Amount (in Rs.)	Max ex-factory price to avail incentive (in Rs.)
2 wheeler	Rs. 10,000/- per kWh	1,.50,000
3 wheeler	Rs. 10,000/- per kWh	5,00,000
4-Wheeler	Rs. 10,000/- per kWh	15,00,000