Bengaluru, 9^th December 2024: Range anxiety, the fear of insufficient battery charge to reach the next charging station, is deterring nearly 58% of potential electric vehicle (EV) buyers in India[1] says the latest whitepaper by Forvis Mazars in India, a leading audit, tax, and advisory services firm.

India’s EV charging infrastructure presents considerable challenges. As of February 2024, the country had only 12,146 public charging stations[2], equating to one charging point for every 135 EVs on the road. This starkly contrasts with countries like the United States and China, which maintain ratios of 20 EVs and 10 EVs per charging station, respectively. Additionally, 70% of India’s public chargers are concentrated in top-tier cities, leaving semi-urban and rural areas significantly underserved.

The white paper also underscores significant operational inefficiencies. A survey conducted as part of the research revealed that 25% of public charging stations experience frequent downtime due to technical issues, limited grid connectivity, or maintenance delays. Furthermore, the average charging time for EVs in India is 1.5 to 2 hours, far exceeding global benchmarks of 30 minutes to 1 hour for fast chargers. These delays further erode consumer confidence in transitioning to EVs.

“Addressing range anxiety is key to unlocking India’s EV potential. This requires a coordinated effort to expand charging infrastructure, drive innovations in battery technology, and foster public-private collaborations. India has a unique opportunity to learn from global leaders and implement a strategy that accelerates EV adoption while addressing local challenges,” said Rohit Chaturvedi, Partner, Transport and Logistics sector leader, Government, Infrastructure and Development Sector Advisory Services, Forvis Mazars in India.

Insights from Norway, a global leader in EV adoption with a penetration rate of 91.5%, reveal a proven roadmap for overcoming such challenges. Norway’s network of strategically placed charging stations ensures that no EV user is more than 50 kilometers away from a fast charger. Additionally, standardization across charging technologies has reduced installation costs, encouraged private sector investments, and improved the user experience.

For India, the report identifies key enablers, including the development of long-range batteries, more affordable EV options, and extensive charging networks. Innovations such as battery swapping for two- and three-wheelers and regenerative braking technologies could further enhance range and affordability. Meanwhile, targeted government policies—such as subsidies for fast-charging stations, tax incentives for infrastructure investment, and subsidies for renewable energy integration—can bridge critical gaps.

The report also notes that 90% of EV users in India rely on home charging due to limited public options, further stressing the need for integrating EV infrastructure with residential and commercial developments. Overcoming grid constraints is another significant priority, as India’s power grid in several regions lacks the capacity to support simultaneous EV charging during peak hours. The absence of a standardized pricing model for public charging further complicates the ecosystem, often leading to cost disparities and consumer dissatisfaction.

Collaborative investment models, such as public-private partnerships (PPP), are crucial for rapid infrastructure expansion. The report suggests including EV charging under India’s official definition of “infrastructure,” which would unlock income tax benefits, encourage foreign investments, and improve financing terms for projects. Consumer awareness campaigns—such as long-distance EV drives, demonstrations of fast-charging capabilities, and transparent cost-benefit analyses—are equally vital for overcoming psychological barriers like range anxiety.

To replicate such success, India must focus on key enablers, including the development of long-range, affordable batteries, extensive charging networks, and standardized technologies. Encouraging innovations like battery swapping for two- and three-wheelers and leveraging regenerative braking technology can further enhance the range of EVs and reduce costs. Government policies such as FAME and the PLI scheme for automotive and battery manufacturing have laid the foundation, but targeted incentives are needed for public charging stations and battery recycling to create a holistic ecosystem.

Forvis Mazars offers comprehensive support for stakeholders in the EV sector, including location analysis, feasibility studies, market strategy development, and investor advisory services. By leveraging these insights, businesses and policymakers can drive transformative growth in India’s EV landscape.

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Bengaluru – August 08, 2024: The electric vehicle (EV) infrastructure market in India is witnessing unprecedented growth, as highlighted in the latest report on India’s EV infrastructure potential by Forvis Mazars in India. The number of public Battery Electric Vehicle (BEV) charging stations expanded significantly from 1,800 in February 2022 to 16,347 in March 2024, marking nearly a ninefold increase. This robust infrastructure expansion is crucial as it aligns with the increasing demand for EVs driven by heightened environmental awareness, rising fuel prices, and supportive government incentives, setting the stage for a more sustainable transportation future.

Rohit Chaturvedi, Partner, Transport and Logistics sector leader, Government, Infrastructure and Development Sector Advisory Services, Forvis Mazars in India, said, “India needs to scale up public charging infrastructure to meet the growing demand and reduce range anxiety. By 2030, electric vehicles are projected to make up almost one-third of India’s passenger vehicle market, highlighting the significant infrastructure requirements. At Forvis Mazars in India, we are committed to supporting this transformative journey, leveraging our expertise in advisory services to help build a sustainable and efficient EV ecosystem in India.”

Rising EV sales and charging infrastructure:

Global electric car sales surged by 27% from 2022 to 2023, reaching 13.09 million vehicles. This rapid increase underscores the critical need for a robust charging infrastructure to support the growing number of EVs, which totalled more than 40 million by 2024.

India’s EV growth and key drivers:

EV sales in India tripled in the last fiscal year, particularly in the two-wheeler (2W) and three-wheeler (3W) segments. The four-wheeler (4W) segment also shows substantial promise with several new model launches expected. Factors such as lower total cost of ownership, ease of use, sustainable choices, a growing supplier network, product customisation, and government incentives like FAME-II are driving EV adoption and charging infrastructure growth.

Charging infrastructure development:

India’s charging infrastructure demands are unique due to the dominance of 2Ws and 3Ws, which primarily utilise AC slow charging and battery swapping. In contrast, 4Ws and buses require a mix of AC and DC charging solutions. Home and workplace charging is expected to dominate for private 2Ws and 4Ws, while commercial fleets will rely on private depots or public charging networks. DC fast chargers will cater to the growing demand for public charging as the 4W EV stock increases

Market potential:

By 2030, India is projected to have around 50 million EVs on its roads, with a market size expected to reach US$48.6bn. To achieve a ratio of 1-40 EVs to charging infrastructure, India will need to install over 400,000 chargers annually, totalling 1.32 million chargers by 2030.

Government policies:

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provides incentives for EV adoption and charging infrastructure growth. The Ministry of Heavy Industries approved 2,877 EV charging stations across multiple states and 1,576 stations on 16 highways and 9 expressways. The Ministry of Housing and Urban Affairs (MOHUA) targets semi-public charging at 20% of all vehicle holding capacity, with additional power load requirements for premises.

The Forvis Mazars in India’s report highlights the significant strides India is making in expanding its EV infrastructure. With projections indicating nearly one-third of India’s passenger vehicle market will be electric by 2030, the focus on scaling up public charging infrastructure is paramount. Forvis Mazars in India remains dedicated to aiding this growth through expert advisory services, ensuring India can meet its ambitious EV targets and support a sustainable future.

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Bengaluru – June 26, 2024: Micro, small, and medium enterprises (MSMEs) are indispensable drivers of the Indian economy, fueling production, employment, and growth across various sectors. The latest report from Forvis Mazars in India, “Designing a Digi-Ready Docket for MSMEs,” underscores the critical need for digital transformation among these enterprises. Despite their crucial economic role in contributing 30% to GDP and 45% to exports, MSMEs remain significantly under-digitised. The COVID-19 pandemic accelerated their digital leap, particularly in e-commerce, with MSMEs’ share in online sales surging from 12% in 2018-2019 to 27% in 2020-2021. This surge underscores the growing digital readiness among MSMEs, as evidenced by increased seller registrations on major e-commerce platforms and heightened activity on Government e-Marketplace (GeM).

The report emphasises that MSMEs must adopt comprehensive digitalisation strategies to remain competitive in a technology-driven world, necessitating a strategic overhaul of business operations to seamlessly integrate technology into every aspect of their functions.

It delves into the promising opportunities and critical challenges associated with digitising MSMEs. MSMEs in India are considerably under-digitised, with only around 12% (7.7 million) having achieved digital maturity, despite their economic significance. The majority are still navigating various stages of the digital journey. This underscores the urgent need for digitalisation to help MSMEs maintain competitiveness in an increasingly technology-driven landscape. The report emphasises that digitalisation goes beyond mere digitisation; it involves a comprehensive overhaul of business and operational frameworks to align with contemporary technological standards. Unlike digitisation, which focuses on converting analog processes into digital formats, digitalisation necessitates a strategic paradigm shift, integrating technology seamlessly into every facet of enterprise operations.

Dr Sanjay Bhardwaj, Associate Partner, Government, Infrastructure, Development sector Advisory Service, Forvis Mazars in India, stated, “Despite the challenges, MSMEs continue to be the backbone of the Indian economy, contributing significantly to GDP and exports. Our report highlights the urgent need for a comprehensive digital strategy to empower these enterprises. By prioritising education, encouraging targeted investments, and fostering regulatory understanding, we can create an environment where MSMEs not only survive but thrive in the digital age.”

Timing and approach are paramount in digitalisation efforts for MSMEs, as rushed or excessive adoption can lead to inefficiencies and operational hurdles. The report advocates for a phased and strategic approach to digital transformation, highlighting key areas such as enhancing digital literacy and skills, strategic investment planning, streamlining regulations, and fostering collaborative initiatives between the public and private sectors.

Key Government initiatives supporting digitalisation

The digitalisation of MSMEs in India has been significantly bolstered by key government initiatives. The National Payments Corporation of India (NPCI)’s interoperable Unified Payments Interface (UPI) system, the Account Aggregator (AA) model institutionalised by the RBI, and the Trade Receivables Discounting System (TReDS) launched by the RBI are instrumental in this digital push. Additionally, the Open Network for Digital Commerce (ONDC) provides a substantial boost, highlighting how integral digitalisation has become for MSMEs and the steps the government is taking to simplify their transition.

The Ministry of MSME has introduced various programs and schemes to enhance digital proficiency within small-scale enterprises, streamlining processes from initial registration to expansion. These initiatives, particularly in skill development, have led to enhanced efficiency and data-driven decision-making, with a strong focus on digital education and complete digital literacy central to the digitalisation efforts.

Through the “Designing a Digi-Ready Docket for MSMEs” report, Forvis Mazars in India recommends a comprehensive digital transformation strategy. This strategy emphasises setting education as a priority, encouraging targeted investments, and channelising Lendtech innovation into MSMEs. Additionally, it advocates for building a comprehensive regulatory understanding, fostering greater inclusivity of medium-sized units, and maintaining a gradual rather than a binary approach to digitalisation. By following this Digi-Docket, MSMEs can effectively navigate the complexities of digital transformation, ensuring sustained growth and competitiveness in an increasingly digital economy.

Forvis Mazars in India’s report encapsulates a pivotal moment in the digital transformation journey of Micro, Small, and Medium Enterprises (MSMEs) in India. It emphasises the importance of a holistic and well-structured digital strategy tailored to the unique needs of MSMEs. The report stresses the significance of digital literacy, targeted investments, regulatory clarity, and public-private partnerships in facilitating a smooth and effective digital transition for MSMEs, ensuring their sustained growth and competitiveness in today’s dynamic business environment.

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