How to Start EV Charging Stations Business in India?

Electric vehicles are the next big fad in India. The country is grappling with the overgrowing problems of pollution and high fuel costs. As such, many people are wishing to go electric. But like with many nascent/ upcoming technologies the cost of initial setup is high in this case too. Though an electric car costs high, the overall return from this investment is pretty good. Imagine you will run your car for free without the hassles of refueling or high fuel costs.

Electric Vehicles Trends in India

Another challenge, in EVs’ booming future, is the lack of proper charging infrastructure. Many EV companies are trying to increase the adoption rate by installing charging stations in the parking lot. However, if you follow the right approach to start the installation, you might end up becoming a successful entrepreneur. The time is also opportune as the EV demand has now started to pick up in India and the competition is also less. The EV charging infrastructure market in India can be segmented into Home Charging, Commercial Charging, and Public Charging basis the end-use. Home charging is a type of AC charging.

Step 1: Approach EV Companies

ev charging companies in india

The correct way to start the process is by obtaining necessary permissions from authorities to install a charger. Please note individuals are free to set up an EV charging station throughout the country and do not need any license for the same. By approvals we mean, any permission required from the residential or commercial complex and following guidelines by the power ministry, wherever you wish to set up. After you obtain the same, you need to partner with an EV company since it has the proper knowledge and expertise on the matter. It is well-equipped with the knowledge needed about the area, permits, charge requirements, safety measures, etc. The popular EV companies in India currently are: 

Two Wheelers: Ather, Ola

Four Wheelers: Tata, MG Hector

Charging Station Company: Exicom

Step 2: Installation Area Verification

ev charging station installation area verification

a. Installation Area (Residential & Commercial)

As specified, according to the Indian government, individuals are free to set up EV charging stations anywhere across the country. However, it has been noted that EV companies might not be interested in case of residential installations. Though it might be a good idea if the residential society approaches the EV companies jointly to install a charger in some common space for the benefit of its residents as many people living in big societies are now thinking of going electric. Commercial establishments make more sense for EV companies for branding, advertising, and better revenue sharing as there is more footfall.

b. Distance from Main Road

It is important to check the overall distance from the main road before installation. Areas with minimum distance are preferred.
Parking Space: There must be ample vehicle parking space in the area you wish to install a charger. Also, confirm the electric panel in your parking has space for easy and convenient charging.

c. Electricity Connection

Please make sure you have the proper connection and charge requirements to support the EV charging stations. For instance, you need the following for extensive charging - 5kW or above, 3 Phase.

d. Earthing

It is important to take note of safety measures and precautions and earthing is one of the most relevant factors in this regard. Please make sure that earthing is available.

Step 3: Agreement between 1st Party & EV Companies

There should be a clear agreement between both parties involved as to installation and revenue sharing so as to avoid any hassle later. Make sure you read all terms and conditions properly and take any point up for discussion if not satisfied.

Step 4: EV Charging Installation Process

charging station installation process

Please make sure you have the following components for installing EV chargers.

  1. Charging Station Components
  2. AC Cable: 3 Core, 1.5 mm AC Cable
  3. Installation as per the given standard

Step 5: Testing

charging station testing

Once the setup is complete, do not forget to do a trial run. This will enable you to get acquainted with chargers and the process/ steps involved. Check if the car’s battery is getting charged. Also, take the car for a test drive once fully charged and keep notes of the drive.

Step 6: Monthly Electricity Consumption Reading

You can check the overall power consumed while charging your car with the help of your electricity bill which gives the monthly reading. The units will show the power consumed while charging the car.

Electric Car  240-300 Units Per Month
Electricity Scooty 15-20 Units Per Month
Electric Bike 15-20 Units Per Month
Electric Cycle 3-5 Units
Electric Rickshaw 10-15 Units Per Month

Step 7: Billing

The units in the electricity bill multiplied by the applicable power tariff (rate per unit) will show the total bill amount, which you will be liable to pay to the electricity department each month.

Step 8: Investment & Profit

It is important that your charging station caters to the needs of EV users. Installing an EV charging station involves minimum capital investment. Though we cannot comment on the profitability at this point in time, it is indeed an upcoming business idea and sooner or later electric cars will catch steam. It is important to choose the right location and have ample space to have high occupancy so as to maximize revenue generation. You can also add on more chargers if your business prospers, given the modular structure.

How many EV charging stations are in India?

Many states in India are proposing their new EV policies which aim to offer various financial incentives to EV manufacturers and promote the manufacturing of electric vehicles and their components in their state. These incentives are designed to further reduce the upfront cost of electric vehicles and also grant incentives to buyers of hybrid EVs. It is important for more states to have such progressive policies for better air quality and reducing the oil import bill in our country. Many states are also encouraging faster adoption of green mobility, providing a robust EV charging infrastructure, and encouraging R&D in this fast evolving EV technology.

However, the country still lacks decent charging infrastructure. To fast track the adoption of EVs in India, the Centre has plans of setting up 22,000 chargers at petrol pumps and 70,000 across the country in the next few years. Outlets of IOC and BPCL have vowed to install 17,000 charging points over the coming years. According to the Ministry of Power guidelines, there should be at least one EV charging station at every 25 km on both sides of a highway. The national highways authority is adding a charging station for every 40 km-60 km of national highways. It further states that there should be at least one EV charging station, for long-range and heavy-duty EVs, every 100 km on both sides of a highway and in a grid of 3 km by 3 km for the cities. The Power Ministry has sanctioned more than 2,800 electric vehicle charging stations in 68 cities across 25 states/UTs and over 1,500 charging stations across nine expressways and 16 highways under FAME II Scheme. A PLI scheme of ~Rs.18,000 crore has been planned for the production of lithium batteries in the country.


Now you see how you can earn passive income by installing an EV charging station at your home or commercial property. It is important to choose the right partner who not only installs the charging station but also takes charge of maintaining and servicing it from time to time. The relevant EV company should also help you in promoting the charging station, and creating awareness among the EV user communities. Given the opportunities and technology advancements, you would need a good partner who can help you with relevant upgrades and make the most of this booming business idea.




How much it cost to start a EV Charging station?

Deepak Prakash Bhoi

Deepak Prakash Bhoi

We want to start this business
Can you help me

huse ebike

huse ebike

Thanks for covering valuable information on how to start ev charging station business in India. Waiting for more valuable content in the future.

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