How to Start EV Charging Stations Franchise In India

on Mar 21, 2024 | 6385 views

Written By: Smita B

The expansion of the electric vehicle (EV) market in India is indicating certain positive aspects for the country. The Indian government is supporting the EV sector by providing various subsidies to them to reduce fuel dependency (crude oil) on other countries as well as to promote sustainability. Hence, the EV market is experiencing growth in India with a bright future.

However, the appropriate infrastructure must be in place to handle EV’s growing market, especially EV charging stations. Hence, many reputed companies are entering the EV charging station business and offering their EV charging station franchises in various localities.

If any individual has an interest in the EV charging station franchise business model and wants to start their own charging station then this article will provide a piece of comprehensive knowledge about the charging station franchise business.

How to start an EV charging station franchise business?

Any franchise business requires proper planning before executing further establishment processes to achieve success. Therefore, a few steps are involved in an EV charging station franchise business as well.

Here is the general process outline for the charging station franchise model setup.

  • Selecting The Ideal Franchisor

Many players are offering EV charging station franchises in India with different requirements and conditions. Therefore it is important to analyse the most suitable EV franchise among all of them.

However, this research can be conducted by visiting their websites, learning their terms and conditions, and having a one-on-one discussion with the franchisor to get more visibility of the business model.

In addition, thoroughly review their Franchise Discloser Document (FDD) to increase awareness about the franchise i.e. financial performance, agreement details, testimonials, etc. Meanwhile, it is better to select the reputed companies that are offering their franchises with fair valuations.

  •  Submission of a Formal Application For a Franchise Business

After getting a complete overview of the franchisor’s business model and credibility proceed further by submitting the formal application form. Mostly the application forms are available on the franchisor's official website.

Fill up the form with the required information like name, background, contact details, address, purpose, location details, etc.

Generally, franchisors arrange meetings for interviews after the evaluation of the application to check candidates' suitability for franchise business and to have direct conversations with them. Here aspirant can ask their queries regarding the franchise business model before moving further with the franchise agreement.

  • Moving Ahead By Signing The Franchise Agreement

Clarifying and understanding the initial aspects of the overall EV charging station franchise model of the company and negotiations (if any) candidate should sign the franchise agreement by paying the requested Charging Station Franchise Cost and submitting the required set of documents

  • Identity proof (Aadhar card/voter’s ID/PAN card},
  • address proof (copy of utility bills/rent agreement/passport)
  • Copy of bank passbook
  • Passport size photo

After signing the agreement franchisee should ask for one copy of the franchise agreement to opt for a written record of collaboration.

  • Attending The Training Programs

Franchises need to attend the training program to get familiar with the EV charging station's entire operating system, its software, and its applications. They will provide the support to let the franchise understand the technical aspects, commercial approach, consumer concordat, etc.

The franchise should take advantage of the franchisor’s support team to access business smoothly from the start.

  • Setting up The Infrastructure

Franchisors assist franchises in setting up ideal infrastructure for charging stations where they guide them with site preparations, designing, power supply permits, employee training, and so on.

The franchisor’s support team will guide the franchisee in overall operations at the initial stage after starting with the charging station.

Essential Aspects Of Electric Vehicle Charging Stations Infrasture

Franchises have to be aware of every relevant aspect of EV business before getting into the sector. Here are key aspects of electric vehicle charging station infrastructure.

Location/Land

  • Space requirement - 300 sqft onwards (depends on franchisors requirement)

Legal documents

  • Purchase agreement (for owned land)
  • Lease agreement (for rental land)

List Of Some Essential Licenses for Charging Station Installation

  • State Electricity Regulatory Commission Licence
  • Local Municipal Authority’s building Permit/ROW Permit/Trade license
  • Vehicle charging station license
  • NOC (local authority)
  • Fire Safety Certificate (Fire Safety Authority)

Equipements

Chargers

AC Chargers with capacity -

  •  3 Kilowatt to 22 Kilowatt (Approximate charging time 6 hrs -7hrs)

DC Chargers with capacity -

  • 11 KW to 25 KW  (Approximate charging time - 4 hrs - 6 hrs)
  • 90 KW to 360 KW (Approximate charging time 20 minutes - 30 minutes)

Safety Features

  • Ground fault protection/overcurrent protection/ device
  • Circuit breakers
  • Sprinklers/fire extinguishers

Amenities

  • Shelters on charging locations
  • Restroom facility
  • Seating area
  • External services i.e. vehicle washing, maintenance, etc.
  • Network connectivity

Top Electric Vehicle Charging Station Franchise

TATA POWER EZ Charger

  • Area Requirement - 1000 sqft - 1500sqft+
  • Approx Investment - ₹ 25 Lakhs - 30 Laks (depends on location and number of charging points)
  • Charging Station Franchise Cost -  around ₹ 3 Lakhs

DELTA ELECTRONIC INDIA

  • Area Requirement - 800 sqft - 1000sqft+
  • Approx Investment - ₹ 5 Lakhs - 10 Laks (depends on location and number of charging points)
  • Charging Station Franchise Cost -  around ₹ 1 Lakhs

ATHER GRID/ENERGY

  • Area Requirement - 200 sqft - 300sqft+
  • Approx Investment - NA
  • Charging Station Franchise Cost -  NA

EXICOM POWER SOLUTION

  • Area Requirement - 300 sqft - 500 sqft+
  • Approx Investment - ₹ 10 Lakhs - 15 Laks (depends on location and number of charging points)
  • Charging Station Franchise Cost -  around ₹3 Lakhs - ₹5 Lakhs

FORTUM INDIA

  • Area Requirement - 300 sqft n above
  • Approx Investment - ₹ 10 Lakhs (depends on location and number of charging points)
  • Charging Station Franchise Cost -  around ₹ 2 Lakhs - ₹ 3 Lakhs

ABB INDIA

  • Area Requirement - 300 sqft - 600 sqft+
  • Approx Investment - ₹ 8 Lakhs - 15 Laks (depends on location and number of charging points)
  • Charging Station Franchise Cost -  around ₹ 2 Lakhs - ₹ 4 Lakhs

ALPHA EV

  • Area Requirement - 400 sqft - 500 sqft
  • Approx Investment - ₹ 10 Lakhs - 15 Laks (depends on location and number of charging points)
  • Charging Station Franchise Cost -  Unspecified

Charze Up

  • Area Requirement - 250 sqft - 500 sqft
  • Approx Investment - ₹ 10 Lakhs - 15 Laks (depends on location and number of charging points)
  • Charging Station Franchise Cost -  Unspecified

Conclusion

While searching for the EV charging station franchise business, It is crucial to figure out the franchisor's exact position in the industry. Hence it is important to gather the company’s maximum information through various sources.

For instance, discussion with industry experts, in-depth research of the franchise opportunity, verifying the franchise agreement, etc. before getting into the business.

Through this article, we have shared wholesome knowledge for aspirants who want to start an electric vehicle charging station franchise but have many queries in their minds. However, this guidance will assist them entering in the EV sector’s franchise opportunities to be part of and experience the country's transition to sustainability.

FAQ’s

What amount does it take to install a charging station for electric cars?

 A basic commercial EV charging station setup costs around ₹ 25 Lakhs to ₹ 30 Lakhs

  • 2 AC chargers - around ₹ 3 Lakhs
  • 1 DC charger - around ₹ 14 Lakhs - ₹ 15 Lakhs
  • Infrastructure - ₹ 4 Lakhs - ₹ 6 Lakhs
  • Working capital - ₹ 4 Lakhs - ₹ 5 Lakhs (at initial stage)

Is the EV charging station business profitable?

Generally EV charging station’s profitability depends on the location, presence of target users, etc. At present the ratio of eclectic vehicles is showing growth and the Indian government is also promoting this sector to support the green evolution in the country. Hence, in the current situation, the EV charging station business has shown 25% + ROI (return on investment) to its investors. Moreover, in the next few years, the EV market has the potential to replace the existing fuel-based vehicles.

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.

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