Written By: Bandana Gupta

Hello, aspiring entrepreneurs! Thinking about entering the fast-growing electric vehicle (EV) space? With EV demand rising across India, franchising is becoming a great way to tap into this booming sector. But before you get started, it’s important to understand the rules of the road. This blog will walk you through the essential regulatory and license requirements for EV and auto franchising in India.

India’s EV Market: A Big Chance for Business

India is moving fast toward cleaner and greener transport. The Indian government has set a big goal: by the year 2030, 30% of all new vehicles sold in the country should be electric. This goal has encouraged people to look at EVs more seriously.

Because of government support, rising fuel prices, and growing awareness about the environment, more people are now buying electric vehicles. This has opened a big door for entrepreneurs. If you’re someone who wants to start a new business, EV franchising can be a smart and future-ready option. It allows you to partner with an established EV brand and run your own dealership, charging station, or service center.

Essential Rules You Must Follow for Successful EV and Auto Franchising in 2025

To run an EV business smoothly and legally, you must follow certain rules made by different government authorities:

• Ministry of Heavy Industries This department takes care of the entire vehicle industry in India. It also supports the growth of electric vehicles and gives benefits through government schemes like FAME II.
• ARAI (Automotive Research Association of India) Every EV model must get approval from ARAI before it can be sold.
• CMVR (Central Motor Vehicles Rules) These are the basic rules for how vehicles should be made, sold, and used in India. EVs must also follow these rules to be legal on the roads.

Discover about India's electric car license requirements.

If you’re trying for “EV license India”, you probably want to know whether permissions or approvals are needed to open an electric vehicle (EV) dealership or franchise.

Register Your Business

Before anything else, you must officially register your business. This is your legal identity.

• Choose a business type: You can start as a Proprietorship (one-person business), Partnership, LLP (Limited Liability Partnership), or Private Limited Company.
• Get GST Registration: This is required so you can issue bills and pay taxes properly. 

Apply for a Trade License

You need a trade license from your local municipal authority (city or town office).

Sign a Dealership or Franchise Agreement

This is a formal contract between you and the EV company you want to partner with.

It explains what you can and cannot do, where you can sell, how products will be supplied, what support you'll get, and how profits are shared.

Get EV-Specific Approvals (Based on Your Business Type)

Depending on what kind of EV business you want to run—like selling EVs, installing charging stations, or managing batteries—different permissions may be needed:

Selling EVs (Dealership Showroom)

There is no special EV license just to sell electric vehicles.

But you must:

•  Be officially approved by the EV company.
•  Ensure that all vehicles meet the safety and quality guidelines set by the Bureau of Indian 

   standards.

Running a Charging Station

This needs more permissions.

• Approval from DISCOMs (your local electricity distribution company).
• Safety clearance from the State Electricity Board.
• The charging station setup must follow CEA (Central Electricity Authority) rules.

Battery Swapping or Battery Leasing Business

If your franchise involves battery storage or swapping (like for e-rickshaws or delivery EVs):

• You need special permission for battery safety and waste handling.
• You may also need to register with CPCB (Central Pollution Control Board), especially if you’ll be recycling or disposing of batteries.

In short starting an EV business in India is exciting, but you need to follow the right steps and get the proper approvals.

From registering your business to signing the right agreement and following safety rules, every step matters to run your EV franchise legally and successfully.

Why EV and Auto Franchising is a Great Opportunity in India

Rising Demand for Electric Vehicles

People are now more aware of pollution and want cleaner transport options. Plus, with fuel prices going up, many prefer EVs as they are cheaper to run. This shift is creating a huge demand for EVs, which means more customers and better business opportunities for anyone starting an EV dealership or franchise.

Strong Support from the Government

The Indian government is strongly encouraging people to use electric vehicles. Through programs like FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), it gives financial support, tax benefits, and discounts on EV purchases. New EV businesses also get help setting up charging stations and other infrastructure. All this support makes it easier and more affordable to start and run an EV franchise.

Multiple Ways to Start Your EV Business

EV franchising is flexible. You don’t need to just sell vehicles—you can choose from many business models, such as

• Dealerships—Sell electric scooters, bikes, or cars under a known brand
• Service Centres—Offer repairs and maintenance for EVs
• Charging Stations—Set up EV charging points in high-traffic areas
•  Effortless Battery Swapping: A Game-Changer for Electric Vehicle 

Whether you’re new to business or an experienced investor, there’s an EV franchise option that can fit your budget and skills.

How to get an EV (electric vehicle) driving license in India—complete step-by-step process

If you're planning to start an electric vehicle (EV) dealership or franchise in India, here are the key steps you need to follow:

1. Make Sure You’re Eligible

Before applying, check if you qualify to open an EV franchise:

• The EV brand you want to work with may ask for things like a minimum investment amount, a good business location, or previous experience.

• If you’re launching an EV service or charging business, it’s essential to comply with all government regulations.

Register Your Business

Set up your business the legal way:

• Pick a business type such as sole proprietorship, partnership, LLP, or private limited company.
• Apply for a GST number so you can pay and collect taxes properly.
• Get a trade license or dealership license from your local municipal authority. 

Follow Legal and Safety Rules

Your EV business must follow certain rules:

• Make sure all vehicles and equipment follow safety rules from authorities like BIS (Bureau of Indian Standards) and ARAI (Automotive Research Association of India).
• If you deal with batteries, charging stations, or waste disposal, you may need approvals from environmental boards such as the CPCB.

• Follow electrical safety rules from the State Electricity Board and Central Electricity Authority (CEA) if you're setting up charging stations.

Sign an Official Franchise Agreement

   Once you're approved, the EV company will offer you a franchise agreement:

• This is a legal document that clearly mentions your responsibilities and the company’s support.
• It covers things like where you can sell or operate, what kind of training and marketing help you’ll get, and how profits or fees are shared.

In short, each EV brand may have its own process, so always check their specific franchise requirements before you begin.

Franchise Opportunities in the EV Sector: A Lucrative Business Avenue

The Electric Vehicle (EV) industry is rapidly growing, and franchising is an attractive option for entrepreneurs looking to tap into this market. Check out these exciting EV business segments:

Two-Wheeler EV Franchises

 Brands like Ola Electric and Ather Energy offer franchise opportunities for electric two-wheelers.

Requirements:

•      Investment: Moderate to high
•      Space: Showroom and service area
•      Training: Technical and sales training
•      Licensing: Dealership license and compliance with EV regulations

EV Charging Station Franchises

 Companies like Tata Power EZ Charge and ChargeZone sell franchises for EV charging stations.

 Requirements:

•  Investment: High
•  Space: Land or existing infrastructure for charging stations
•  Training: Master EV charging station installation, operation, and maintenance.
•  Licensing: Compliance with electrical and safety regulations

Electric Commercial Vehicle Dealerships

 Brands like Euler Motors and Piaggio Electric offer franchise opportunities for electric       commercial vehicles.

 Requirements:

•  Investment: High
•   Space: Showroom and service area
•   Training: Technical and sales training
•    Licensing: Dealership license and compliance with EV regulations

Battery and Maintenance Services

 Offer battery swapping, maintenance, and repair services for EVs.

 Requirements

• Investment: Moderate
•  Space: Service area and storage for batteries
• Training: Technical training on battery maintenance and repair
• Licensing: Compliance with safety and environmental regulations

Each segment has its unique requirements, and entrepreneurs should carefully evaluate their options before investing in an EV franchise. With the growing demand for EVs, franchising in this sector can be a lucrative business opportunity.

Proven Key Strategies for a Successful Electric Vehicle Franchise Launch in India 2025

EV franchising is a promising opportunity for Indian entrepreneurs, but navigating the regulatory maze requires diligence. From business registration to acquiring the right EV license in India, compliance is key to building a sustainable, scalable business.

• Research the Brand Well: Learn about the brand you want to work with. Not every franchise offers the same value or support, so choose wisely.
• Get Legal Help: It's a good idea to talk to a legal expert, especially when signing the franchise agreement or dealing with local rules and licenses.
• Keep Up with EV Policy Changes: EV rules in India are changing quickly. Stay informed by checking updates from MoRTH (Ministry of Road Transport & Highways), MNRE (Ministry of New and Renewable Energy), and your state’s EV policy board.
• Plan Your Setup Carefully:  If you're opening a dealership or a charging point, make sure to include proper space for parking, enough charging ports, and follow all safety requirements.

Conclusion:

EV and auto franchising in India offer exciting opportunities for entrepreneurs. By understanding the regulatory and licensing requirements, you can establish a successful franchise and capitalize on the growing demand for EVs in India. So, what are you waiting for? Accelerate your EV franchise today!

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.