Why 58% of Potential EV Buyers in India Are Hesitant, According to Forvis Mazars Report

25% of public charging stations experience frequent downtime due to technical issues, limited grid connectivity, or maintenance delays.

90% of EV users in India rely on home charging due to limited public options.

The average charging time for EVs in India is 1.5 to 2 hours, far exceeding global benchmarks of 30 minutes to 1 hour for fast chargers.

NEW DELHI: Range anxiety, the fear of insufficient battery charge to reach the next charging station, is deterring nearly 58% of potential electric vehicle (EV) buyers in India says the latest whitepaper by Forvis Mazars in India, a leading audit, tax, and advisory services firm.

India’s EV charging infrastructure presents considerable challenges. As of February 2024, the country had only 12,146 public charging stations, equating to one charging point for every 135 EVs on the road. This starkly contrasts with countries like the United States and China, which maintain ratios of 20 EVs and 10 EVs per charging station, respectively. Additionally, 70% of India’s public chargers are concentrated in top-tier cities, leaving semi-urban and rural areas significantly underserved.

The white paper also underscores significant operational inefficiencies. A survey conducted as part of the research revealed that 25% of public charging stations experience frequent downtime due to technical issues, limited grid connectivity, or maintenance delays. Furthermore, the average charging time for EVs in India is 1.5 to 2 hours, far exceeding global benchmarks of 30 minutes to 1 hour for fast chargers. These delays further erode consumer confidence in transitioning to EVs.

“Addressing range anxiety is key to unlocking India’s EV potential. This requires a coordinated effort to expand charging infrastructure, drive innovations in battery technology, and foster public-private collaborations. India has a unique opportunity to learn from global leaders and implement a strategy that accelerates EV adoption while addressing local challenges,” said Rohit Chaturvedi, Partner, Transport and Logistics sector leader, Government, Infrastructure and Development Sector Advisory Services, Forvis Mazars in India.

Insights from Norway, a global leader in EV adoption with a penetration rate of 91.5%, reveal a proven roadmap for overcoming such challenges. Norway’s network of strategically placed charging stations ensures that no EV user is more than 50 kilometers away from a fast charger. Additionally, standardization across charging technologies has reduced installation costs, encouraged private-sector investments, and improved the user experience.

For India, the report identifies key enablers, including the development of long-range batteries, more affordable EV options, and extensive charging networks. Innovations such as battery swapping for two- and three-wheelers and regenerative braking technologies could further enhance range and affordability. Meanwhile, targeted government policies—such as subsidies for fast-charging stations, tax incentives for infrastructure investment, and subsidies for renewable energy integration—can bridge critical gaps.

The report also notes that 90% of EV users in India rely on home charging due to limited public options, further stressing the need for integrating EV infrastructure with residential and commercial developments. Overcoming grid constraints is another significant priority, as India’s power grid in several regions cannot support simultaneous EV charging during peak hours. The absence of a standardized pricing model for public charging further complicates the ecosystem, often leading to cost disparities and consumer dissatisfaction.

Collaborative investment models, such as public-private partnerships (PPP), are crucial for rapid infrastructure expansion. The report suggests including EV charging under India’s official definition of “infrastructure,” which would unlock income tax benefits, encourage foreign investments, and improve financing terms for projects. Consumer awareness campaigns—such as long-distance EV drives, demonstrations of fast-charging capabilities, and transparent cost-benefit analyses—are equally vital for overcoming psychological barriers like range anxiety.

To replicate such success, India must focus on key enablers, including the development of long-range, affordable batteries, extensive charging networks, and standardized technologies. Encouraging innovations like battery swapping for two- and three-wheelers and leveraging regenerative braking technology can further enhance the range of EVs and reduce costs. Government policies such as FAME and the PLI scheme for automotive and battery manufacturing have laid the foundation, but targeted incentives are needed for public charging stations and battery recycling to create a holistic ecosystem.

Forvis Mazars offers comprehensive support for stakeholders in the EV sector, including location analysis, feasibility studies, market strategy development, and investor advisory services. By leveraging these insights, businesses and policymakers can drive transformative growth in India’s EV landscape.

Link to report: https://www.forvismazars.com/in/en/insights/market-insights/spurring-rapid-adoption-of-evs-in-india

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