Strengthening India’s EV Charging Infrastructure via Franchise Route
The year 2019 has been a glorious year for electric vehicles in India and many other businesses associated with it. Starting right from the notification of second phase of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME II) scheme in March 2019, the government had announced an outlay of ₹ 10,000 crores to boost electric mobility and increase the number of electric vehicles. The massive step towards the boost of e vehicle was put forward in the Union Budget 2019 with the proposal of custom duty exemption for importing certain EV parts and additional income tax deductions of INR 1.5 lakh on interest amount for EV loans.
The government’s rigorous initiatives toward making India an Electric Vehicle country has pushed the simultaneous demand for EV charging infrastructure.
Currently, most of the charging stations in India are provided by the government companies such as EESL and TATA Power, which do not satisfy the demand. In such scenario, franchise systems can be proven beneficial to strengthen the EV charging infrastructure.
Surging Future of EV Charging
As per National Electric Mobility Plan (NEMMP), the government of India has a vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country under which schemes like FAME are being introduced. In the FAME II scheme, the charging infrastructure has been one of the main focus areas and Rs 1000 crores has been demarcated for setting up charging stations for electric vehicles in India.
With these facts, it is evident that the government’s push towards the adoption of electric vehicles is giving a little more push to the charging stations market. The FAME India scheme is a mission that aims to achieve its target of sustainable growth of e-vehicles till the year 2020, which predicts a robust growth of charging station market in the near future.
EV charging stations are in grave demand as the government is focussing on streamlining the electric vehicle scene in India. With more and more production and distribution of e-vehicles, more and more charging stations will be required, and hence there will be a surging growth path.
Another trend that will shape the future of EV charging stations is the increasing need for community charging stations, i.e, electric charging stations set up by businesses, hotels or resorts. As India is on the way towards becoming a ’Electric Vehicle Nation’, charging stations are expected to witness significant growth in the EV charging stations at accessible locations and nearby highways, especially for longer journeys.
Why Franchise Route?
Franchise has been one of the most effective routes for expansion for most business ideas. Till now, the market has been dominated by the government-run brands, which is not sufficient to meet the demand. So naturally, it’s high time that private companies should disrupt the market to reap the benefits of the skyrocketing growth of EV.
As a business model, EV Charging station franchise can be a profitable business opportunity, seeing the extravagant potential that the electric vehicle sector holds. Electric vehicle charging station brands should look for franchising route for expansion as it is a cost-effective method of expansion and ensures brands to grow faster in lesser time. Brands like Panasonic and Charjet have already taken franchise route to meet the rising demand.
With an amalgamation of a high-potential business model like EV charging stations and a cost-effective expansion model like franchising, electric vehicle charging franchises becomes a lucrative platform for entrepreneurs to venture in.
Typical Franchise Requirement
Investment Range: Rs 8 lakhs to Rs 60 lakhs
Area Required: 150 -1500 sq ft
Expected ROI: 400%
Expected Breakeven: 3-5 years