Evolution of EV Charging in India: Overview, Business Model, Key Factors and Future

Moving ahead, the EV sector in India will demand access to efficient charging infrastructure. That is, EV Charging could become a roadblock to electric vehicle uptake. Firstly, Charge Point Operators (CPOs) need to understand what will happen when charging becomes a commodity. The electric vehicle market in India is heading for disruption. However, the EV market in India is at an embryonic stage.

Already becoming a commodity, Electric Vehicle Charging Space, and Business Players (CPOs) need to adhere to the innovation happening in several directions to stay in business. Few are still hesitant to invest in new opportunities. Others are still prevalent to invest in new ideas, technologies, major collaboration and acquisitions to capture future market positions.

The Indian EV market is characterized by its high tendency to multiply. It faces intensive competition in the form of new startups and entrants to survive until they finally bite the dust. Further, there are so many instances where we have seen this intensive flux in the past, affecting market shares and direct customer access. 

So, what is the perfect blend for the market in these expeditiously fast-moving times? What will be the success key factors that will drive business models to evolve? How to cope up with brewing disruption?

Big Energy Demand! From home to work to public charging

Unlike conventional Internal Combustion Engine (ICE) Vehicles, EVs can recharge at multiple locations; in multiple manners. Assume a wired plugin charger at home, at work and public and on the highway for long-distance trips as a  conventional model. Thus, concepts like wireless charging, charging streets or street light charging, are potentially emerging and viable mode in EV charging space. It was estimated that India will require around 79.9 gigawatt-hour (GWh) by 2020.

But, looking at the recent global growth figures India will need about 100 terawatt-hours (TWh) of electricity by 2030.  People in India tend to follow the charging hierarchy that starts at home. Most of the individual or consumer’s car stands parked for 12 hours at night. Thus, maybe charging at home is the cheapest option for them rather than charging elsewhere.

Evolution of EV charging Business Model and their relation

Conventionally, there have been three roles in the Public EV value chain.

• Charge Point Operators (CPOs), that run and maintain the charging station.
• Mobility Service Providers (MSPs) who cater to service contracts for the end customer. They provide the user interface for access to and usage of charging infrastructures.
• E-Roaming platforms, that act as an aggregator of the two other roles, connecting CPOs and MSPs.

But, for the Evolution of the charging model, these roles in the public EV value chains are still valid. Only a few players could survive in the market as value chain integration has started. Hence, Business models need to undergo proliferated change in their business models. Points of interest such as building shopping centres, food courts, need to cope with improved charging performance of new electric vehicles. 

Key role success factors

CPOs need to expand across the value chain since they are currently the most active players along the public EV value chain. The network of charging points is wide-meshed in most markets. By reaching a critical size, the charge point operator CPOs becomes more and more attractive to mobility service providers (MSPs) for direct connection. Both players avoid the fees of e-Roaming platforms which are accordingly trying to focus on other services by holding up to their diverse technical and market insight. For CPOs EV space is all about scale game, the winner gets all; for MSPs, it’s all about diversification. Further, for e-roaming, it will be extremely difficult to remain in the game.

CPOs by expanding their networks, by aggregating smaller players can secure the most attractive charging locations right now dominantly for fast charging service. For MSPs a smaller number of players are dominating the market and competition is more likely to join. Original Equipment Manufacturer (OEM) related MSPs have the additional advantage of being able to lock EV customers in if plug and charge become the market standard. E-roaming and its core business model will be more likely to be taken over by CPO aggregators because it seems like they might develop and come up with new solutions. Despite the fact, e-roaming platforms are under the biggest threat of losing their present investors due to conflicts of interest.

Conclusion

The EV charging market in India is still at the initial stage. It will serve gigantic growth opportunities soon. It is not viable for industry players to simply float or surf the growth wave without taking risks. To identify the right goals and loopholes. They must analyze the market in the broader sense and look at adjacent industries because the window of opportunity will close soon, and it is now the right time to move up or speed up towards growth.