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Financial Projection for EV Charging station business in India: Revenue Model

Electric Vehicle Charging Station business model in India profit revenue projection

EVs are the hottest trend in India right now, considering their cost efficiency, operating cost, and overall performance. Supportive GOI policies and subsidies have led to the exponential rise in the number of Electric vehicles in India and EV Charging business profit.

India witnessed a growth of 149% in EV sales with 49,607 units in sales in 2022 compared to 2021. The rise in EV sales is likely to create a demand for EV charging stations in public spaces and expressways. 

EV Charging station business model in India
EV charging station business model is likely to create an investment opportunity of INR 20,630 Crores in India

Nationwide EV charging station infrastructure development is the key to meeting GOI’s ambitious goal of EV adoption by 2030. To support the goal, India would need 29,34,000 EV charging stations, which is likely to create an investment opportunity of INR 20,630 crores. Considering the scenario, it is the best time to invest in the EV Charging station business in India. 

Curious about the profit of the EV charging station business in India? We got you covered!

In this article, we have curated a detailed financial projection and revenue model for the EV charging station business in India. The profit margin in the EV charging station business in India is pretty high now, considering GOI’s goal of 2030.

Electric Vehicle Charger types in India
Electric Vehicle Charger types in India for EV charging station business model

Cost of EV charging in India

The tariff for new third-party-owned EV charging infrastructure shall be as per the AERC tariff order for utilities. But considering the nationwide tariff for EV charging the base EV charging cost would be 19/kW, for now. 

EV charging tariff for Charge Point Operators (CPO)  differs from state to state according to its EV policy. Most of the Indian states settled on a DISCOM tariff of Rs 5.75-6.76 per kW for EV charging (Published in the Handbook for EV charging infrastructure implementation). The demand charge for the low tension is set to 130/kW per month, whereas for the high tension is 160kVA per month. 

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How do EV Charging stations make money?

Revenue generated and profit margin from an EV charging station depends on state-wise and investment in the charging station project. Currently, the EV charging station business is profitable in certain metro regions of India with a stronghold of EVs. Also, the profit from an EV charging station depends on the time utilized for charging an EV. 

Profit in the electric vehicle charging station business in India is calculated based on the following assumptions:

  • The vehicle being charged is a Tata Nexon EV with a battery capacity of 30kw
  • The vehicle comes to the station in need of 25 kW of charge.
  • Discom tariff being Rs 6/kW  (approx) and Public EV charging cost 20kW
DescriptionPrice
Discom tariff (25kWX6)Rs. 150
Public EV charging cost (@20/kW)X25(-)Rs. 500
ProfitRs. 350
Profit from charging a single electric car in India (worst-case scenario)

Financial Projection for EV Charging station in India

Financial projections and revenue models for an EV charging station depending on the project type and the amenities provided. The minimum time required for charging an EV up to 70% with a fast charger is 50-60 mins. The waiting time for customers to charge their vehicles can be resourcefully utilized to generate further revenue. A small food kiosk or coffee shop will not just add to the revenue but also provides a place for customers to wait while charging.

EV charging station business model in India
EV charging station business model in India

Financial Projection and profit in an EV charging station in India are calculated based on two scenarios:

  1. Standalone slow & fast EV charger
  2. EV slow & fast charger along with food kiosk or coffee shop.

Revenue projection/profit and loss from an electric vehicle charging station:

The yearly revenue projection is calculated based on the following assumptions:

  • Calculated on a yearly basis and 10 cars visit the EV charging station per day..
  • Public charging cost is estimated to be 20/kW and the car arrives in need of 25kW of charge.
  • EVSE costs Rs 60,000 per year.
  • The number of incoming vehicles increases by 5 each year.
  • Cost to charge 1 electric car up to 80% – 25kWX20= Rs 500
  • DISCOM electricity cost to charge 1 electric vehicle = 25kWX6= Rs150
  • Profit from charging one electric car up to 80% = Rs 350

Yearly Financial Projection

Yearly Financial Projection from an electric vehicle is calculated for Year 1, Year 2, and Year 3.

MetricsYear 1Year 2Year 3
EV Charging TariffRs. 17,00,000Rs. 26,00,000Rs. 32,0,000
Discom TariffRs, 5,30,000Rs, 8,10,000Rs. 10,80,000
ProfitRs. 12,60,000Rs. 18,90,000Rs. 24,20,000
Yearly Financial Projection of an EV charging station
  • Depreciation, wear and tear, and tax is not included.
  • EV Charging business profit depends on variables like added manpower and extra infrastructure

Return on investment (ROI) from an EV charging station

Return on Investment (ROI) for EV charging station business model
Return on Investment (ROI) for EV charging station business model

Considering the nascent stage of EV adoption in India, people were very skeptical about the business in the EV-related industry in India. But post the adoption and general acceptance of EVs in India, EV stocks and EV-related business have become the hottest trend so far in the automotive sector of India.

ROI in the EV charging station business in India depends on the utility-based EV charging rates, the number of charging ports per station, charging power, as well as the presence of another EV charging station nearby. 

ROI from an EV charging station business in India solely depends on the station infrastructure type. If CPOs invest to build added amenities in the charging station, the EV charging business is likely to offer a higher ROI compared to a stand-alone EV charger. 

For the first year, the EV charging station business offers raw in-hand profit of Rs 12,60,000 to CPOs considering the worst-case scenario, which almost shoots up to 18 lakhs from the second month onwards.

EV charging is a highly profitable business in the present and future. It is a matter of patience and early investment into the sector until bigger fish arrives in the ocean of the EV charging business. 

FAQ

How much does an EV charging station make in India?

Considering the current market scenario, an EV charging station in India makes around 10-14 Lakhs yearly in India.

What is the profit margin of EV charging stations?

The EV charging station business in India is highly profitable considering the few EV chargers compared to a large number of vehicles. Yearly, EV charging stations in India would make around 10-14 Lakhs.

How much does it cost to make an EV charging station in India?

Installing an EV charging station in India would cost around 12-18 Lakhs depending on the type of charger one wants to install and the infrastructure requirements.

78 thoughts on “Financial Projection for EV Charging station business in India: Revenue Model”

  1. Pingback: Bidirectional EV Charging is the Future of EV Chargers - Complete Guide

    1. Hello Mr. Vaibhav,
      Glad you reached out to us for your EV charging station project. Kindly check your email for the detailed steps to install an electric vehicle charging station in India. Or call us at +91 8473079681

    1. Hello Mr. Rishav Yadav,
      Glad that you connected to us for your EV charging station project.
      Kindly check your email to view a detailed guide to install EV charging stations in India.

      Regards,
      Team Ecogears

  2. AJI PURUSHOTHAMAN

    i want to start the business in kerala , two places one in Kollam , another 10 klm down from munnar down .

    Will it be good ! You are also doing business study the viability of this business in this areas . Please advice

    1. Hello Mr. AJI PURUSHOTHAMAN
      Glad you connected to us for your EV Charging station project.
      The locations you choose are best for business in this domain.
      We will assist you in every possible way to install an EV charging station in Kollam and Munnar.

      Regards,
      Team Ecogears

    1. Hello Mr. Sagar
      Glad you connected to us for your EV charging station project.
      Kindly check your mail for a detailed guide to install EV charging station in Mumbai.
      Or you can give us a call at +91 8473079681

      Regards
      Team Ecogears

    1. Hello Sahil Choudhary,
      Glad you connected to us for your EV charging station project.
      Kindly check your mail to receive a full guide to install an electric vehicle charging station in India.

      Regards,
      Team ecogears

    1. Hello Owais,
      Glad you connected to us for your EV charging station project in India.
      Kindly check your mail to receive a full guide to install an electric vehicle charging stations in India.

      Regards,
      Team ecogears

    1. Hello Mr. Abhishek Singh,
      Glad you connected to us for your EV charging station project in Mumbai.
      Kindly check your mail to receive full guide to install electric vehicle charging station in Mumbai

      Regards,
      Team ecogears

  3. Plz send the full details about the land and machinery requirements and revenue model electric charging station in Rajasthan

    1. Hello Dr. Nishant,
      Glad you connected us for your EV charging station project in Rajasthan.
      As per your request, we have mailed you the details for land and machinery requirements for the electric vehicle charging station.
      Kindly check your email for a detailed guide.

      Regards,
      Team Ecogears

    1. Hello Mr. Kunal Kumar Patel

      Glad that you connected to us for your EV charging project.
      Kindly check your mail to receive a complete guide to install an EV charging station in India.

      Or you can call us directly at +91 8473079681

      Regards
      Team ecogears

    1. Hello Mr. Abhishek

      Glad that you connected to us for your EV charging project.
      Kindly check your mail to receive a complete guide to install an EV charging station in India.

      Or you can call us directly at +91 8473079681

      Regards
      Team ecogears

    1. Hello Mr. Srijan

      Glad that you connected to us for your EV charging project in Mumbai, Maharastra, Madhya Pradesh
      Kindly check your mail to receive a complete guide to install an EV charging station in India.

      Or you can call us directly at +91 8473079681

      Regards
      Team ecogears

    1. Hello Mr. Shubham,

      Glad that you connected to us for your EV charging project in Gurgaon
      Kindly check your mail to receive a complete guide to install an EV charging station in India.
      Or you can call us directly at +91 8473079681

      Regards
      Team ecogears

    1. Hello Mr. Rohan

      Glad that you connected to us for your EV charging station project.
      Kindly check your mail for a complete guideline to install an EV Charging station in India.

      Or you can call us directly at +91 8473079681

      Regards
      Team Ecogears

    1. Hello Mr. Anubhav
      Glad you connected to us for your EV Charging station project in Madhya Pradesh. We will assist you in every possible way to install an EV charger. Kindly check your email for updates on your queries.
      Regards, Team ecogears

  4. Im planning To open… plese send complete details of investment… rules and regulation… manpower requirement and each and everything …!!!

  5. Hi, Very informative article and I am interested in knowing more about this business model and keen to start it in the near future. I look forward to hearing from you.

  6. Hello team, i am keen to start multiple charging stations in madhya pradesh, please send me the details of setting up charging stations (Level 1,2 &3), interested in setting up of EV charging station in Belgaum district of Karnatak state.

  7. Im planning to open DC Fast Charger please send complete details of investment, rules and regulation. In case any hidden cost involved please do let me know.

  8. Im planning To open in my parking lot. I have another house in mulund west, possession of which is in january 2023 and i will have two mor parking slots there. Since i have only car and 3 parking slots, i want to leverage this by using this business opportunity… please send complete details of investment, rules and regulations, manpower and MSEB requirement and subsidy benefits available!!!

    1. Hello Mr. Dayanand
      Warm regards from team ecogears
      Thankyou for reaching out to us. We have sent you all the details to start an Electric Vehicle charging station in Pune over your email.

      Regards,
      Team Ecogears

    1. Hello Chaitanya,

      Glad that you connected to us for your EV charging project.
      Kindly check your mail to receive a complete guide to install an EV charging station in India.
      Or you can call us directly at +91 8473079681

      Regards
      Team ecogears

    1. Hello Mr. Sreekumar

      Glad that you connected to us for your EV charging project.
      Kindly check your mail to receive a complete guide to install an EV charging station in India.

      Or you can call us directly at +91 8473079681

      Regards
      Team ecogears

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