Business Loan for EV Charging Station

Electric vehicles are the new buzzword and the market in India is growing steadily. The Electric vehicle market was USD $ 5 billion in 2020 and is expected to grow to the US $ 47 billion by 2021. The state of Kerala alone plans to launch 1 million electric vehicles by 2022 and 6000 e-buses by 2025.  The vehicles that are going electric are passenger cars, 2 wheelers and heavy-duty vehicles such as buses and trucks. The types of vehicles by charging type include plug-in hybrid electric vehicles, hybrid electric vehicles and battery electric vehicles.

The Indian government is pushing for green environment initiatives and has moved from Bharat Stage V (BSV) to BSVI standards is expected to boost the market for electric vehicles further. This exponential rise of electric vehicles has led to an increase in the requirement for charging stations. The business of setting up charging stations Is a lucrative new business. The business includes getting land as the charging station will need to accommodate at least a few vehicles and 2 wheelers on the basis of the type of vehicles for which the charging business is to be set. 

The location of the land is important as people would prefer to be in the vicinity of a shopping mall or a shopping complex or a locality of markets and restaurants so that they can shop and eat while their vehicles are being charged. A commercial area would also be a good idea as customers can attend office while their vehicles are being charged.  

The next requirement is for the type of equipment based on the type of charging to be done. There are fast chargers that charge the entire batteries of an electric vehicle within an hour and do a partial charge within a few hours. Fast chargers include CHadeMO chargers, CCS chargers, and type 2 AC chargers. The slow and moderate chargers include AC 001 and DC 001.