58% potential EV buyers discouraged by range anxiety, says report

Nearly 58 per cent of potential electric vehicle (EV) buyers in India are discouraged by range anxiety—the fear of running out of charge without access to a charging station.

 

According to a new report from Forvis Mazars in India, as of February 2024, the country had just 12,146 public charging stations nationwide—one charging point for every 135 EVs on the road. In contrast, the United States and China boast far better ratios of one station per 20 EVs and one station per 10 EVs, respectively.

 

Moreover, 70 per cent of India’s public chargers are concentrated in metropolitan hubs, leaving rural and semi-urban areas woefully underserved.

   

The report paints a concerning picture of India’s EV ecosystem, highlighting infrastructural gaps and operational inefficiencies as key barriers to adoption.

 

Adding to the woes, 25 per cent of public charging stations experience frequent downtime due to technical issues, limited grid connectivity, or maintenance delays. The average charging time is a sluggish 1.5 to 2 hours, significantly exceeding the global benchmark of 30 minutes to 1 hour for fast chargers. These delays significantly erode consumer confidence in switching to EVs.

 

“Addressing range anxiety is critical to unlocking India’s EV potential,” said Rohit Chaturvedi, partner at Forvis Mazars in India. “This requires a coordinated effort to expand charging infrastructure, drive innovations in battery technology, and foster public-private collaborations.”

 

The report highlights Norway as a model for overcoming range anxiety. With an EV penetration rate of 91.5 per cent, Norway has ensured that no EV user is more than 50 kilometres away from a fast charger. Standardised charging technologies have also reduced installation costs and improved user experiences.

 

For India, the report identifies key enablers such as developing long-range batteries, offering more affordable EV models, and establishing extensive charging networks. Battery-swapping innovations for two- and three-wheelers and regenerative braking technologies could further enhance EV range and affordability.

 

Currently, 90 per cent of Indian EV users rely on home charging due to the limited availability and reliability of public charging stations. This highlights the need to integrate charging infrastructure into residential and commercial developments. However, grid constraints remain a pressing issue, with many regions unable to support simultaneous charging during peak hours.

 

The report suggests targeted policies, such as subsidies for fast-charging stations and tax incentives for infrastructure investments, to bridge critical gaps. Collaborative investment models, including public-private partnerships, could accelerate infrastructure development. Classifying EV charging stations under India’s official infrastructure definition would unlock income tax benefits and attract foreign investments.