EV charging station business may require up to Rs 1.05 lakh crore investment by 2032, says report
According to a survey, the country may need to invest Rs 1.05 lakh billion in the EV charging station industry by 2032 because 2.30 lakh such facilities are anticipated to be needed during that time. Credit rating firm India Ratings and Research (Ind-Ra) stated in its study that this enormous expenditure will be necessary to meet the growing demand for EVs, which is predicted to increase at a compound annual growth rate (CAGR) of 39%, and the ensuing demand for power.
It also said that commercial EV charging stations are expected to be a major contributing factor in the penetration of these vehicles.
Ind-Ra also believes EV penetration for the overall automobile industry would reach 40 per cent by FY32 from about 4 per cent this fiscal.
According to the report, government's incentive schemes such as the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and PLI (Production Linked Incentive) schemes for advanced chemistry cells, as well as its focus on expanding the footprint of the electric charging infrastructure along with sustained increase in the petrol and diesel prices could lead to secular growth in the demand for EVs.
India would require around 63,000 charging stations and cumulative investments of Rs 269 billion (Rs 26,900 crore) for setting up the charging stations over the next five years to cater to the growing demand for power for operating EVs.
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