Electric Dreams, Grounded By Reality

Real Estate Hurdles, Low Yields Continue To Stifle India’s EV Charging Expansion

By Shubhangi Bhatia

What?

India sold 24.52 lakh electric vehicles in FY2025-26. Even though the charging network meant to support this surge has come a long way over the past years, it is still buckling under strain.

On key expressways, chargers are either perpetually occupied or simply absent. The pace of new installations is also slowing. In the October to December and January to March quarters, the industry installed approximately 1,000 CCS2 fast chargers each quarter, nearly one-third lower than the two quarters preceding it.

The problem does not end at the highway. Housing societies, including in Gurugram, have been unable to obtain fire NOCs, as local fire departments have declined to clear EV charging units installed in basements over safety concerns.

Why?

The challenges are structural, financial, and regulatory, and they compound each other. Setting up a DC fast charger costs 10 to 12 times more than an AC setup. Slow initial returns remain a persistent deterrent. "Beyond the charger itself, there's a need for high-capacity grid connections, transformers, heavy-duty cabling, and integrated cooling systems," Raman Bhatia, Managing Director at Servotech Renewable Power Systems, told The Core.

Real estate is another chokepoint as developers sideline charging operators in favour of quicker-yield tenants, a phenomenon industry experts call land-locking.

Kartikey Hariyani, CEO of ChargeZone, pointed to skyrocketing property costs and heavy utility deposits as the two primary barriers. "The one-time deposit required by distribution companies ranges from Rs 30 lakh to Rs 70 lakh," he told The Core.

For oil marketing companies, the business model is fundamentally misaligned. "EV charging is an unprofitable business for OMCs, one that has largely been government-pushed rather than market-driven," Amit Bhatt, Managing Director of India at the International Council on Clean Transportation (ICCT) told The Core. 

BPCL's charger utilisation rate bears this out starkly, as it stands at just 1%, in contrast to 14% for private charge point operator ChargeZone.

Why It Matters?

India has no mandatory targets for charging infrastructure expansion. The government has allocated Rs 2,000 crore under PM E-DRIVE, and automakers are making ambitious commitments.

Meanwhile, India Brand Equity Foundation (IBEF), a government-backed entity, estimates an opportunity for 1.32 million charging stations by 2030, requiring nearly four lakh installations every year. At the current pace, this target looks distant.

And building the network is only half the battle, keeping the chargers running is where the challenge truly lies.

The gap between India's EV ambitions and its charging reality is wide. The policy intent exists, the demand is building, and the opportunity is well documented. But can the operational reality keep pace with the vehicles already on the road?

54.7

That’s where the HSBC–S&P Global Purchasing Managers' Index (PMI) stood in April, up from 53.9 in March. The PMI is a monthly survey of manufacturers that tracks changes in output, new orders, employment, and prices. It follows a simple scale: a reading above 50 signals expansion, while anything below 50 indicates contraction. So, at 54.7, India’s manufacturing sector is still growing.

But the headline number masks slowing momentum. Output and new orders continued to rise, but at one of the weakest paces since mid-2022. At the same time, input costs surged at the fastest rate in over two years, driven by higher fuel and raw material prices linked to tensions in West Asia.

Origin: Firms raised selling prices sharply, even as demand remained uneven. “Cost pressures intensified midway through the first fiscal quarter,” said Pranjal Bhandari, noting that companies passed on higher costs to customers.

Pivot: While export demand stayed resilient and hiring picked up, softer domestic demand and rising inflationary pressures continue to weigh on the sector.

East Swings, South Shifts

Results for the 2026 assembly elections across West Bengal, Tamil Nadu, Assam, Kerala and Puducherry are in and it has shifted the political momentum, according to data from Election Commission of India.

Context: The BJP stormed West Bengal, winning over 200 seats even as Mamata Banerjee lost her Bhabanipur seat to BJP's Suvendu Adhikari by 15,114 votes. BJP also retained Assam. Congress-led alliance performed well in Kerala, winning 63 of 140 seats. In Tamil Nadu, actor Vijay’s party has disrupted the traditional contest, winning over 90 seats. Puducherry has delivered a clear mandate in favour of the ruling AINRC.

Forecast: In West Bengal and Assam, strong BJP performance suggests a consolidation of its position in eastern and northeastern states, which may improve coordination with the Centre and align policies more closely. In Kerala, a strong showing by Congress-led alliances reflects continued support for coalition politics and keeps competition tight for the ruling front.

In Tamil Nadu, the rise of actor Vijay’s party signals a break from the traditional two-party system, pointing to a more fragmented and unpredictable political landscape. In Puducherry, a clear mandate for the AINRC-led alliance is likely to support more stable governance with fewer coalition issues and quicker decision-making.

FIFA Broadcast Crisis

FIFA faces uncertainty over 2026 World Cup TV rights in India and China, raising doubts about how fans will watch the tournament, Reuters reported.

Context: FIFA is struggling to finalise TV broadcast deals for the 2026 World Cup in India and China. In India, a Reliance–Disney joint venture has offered about $20 million for the rights, which is much lower than expected, and talks with other broadcasters have not worked out. In China, no broadcaster has been confirmed yet, even though many viewers watched the last World Cup there.

What’s Next: If deals are not finalised soon, FIFA may have to lower prices or change terms. This will decide how easily fans in two of the biggest markets can watch the World Cup and could affect future broadcast deals.

Ceasefire Frays, Costs Rise

The US-Israel war on Iran shows no signs of easing, as a mid-April ceasefire along the Israel-Lebanon border continues to fray. Israel has stepped up strikes in southern Lebanon, while Lebanese leaders have ruled out negotiations until the fighting stops, Reuters reported.

Catch Up Quick: The United States has launched a naval operation to guide stranded commercial vessels in the Strait of Hormuz, even as Iran warns that any unauthorised passage could trigger attacks. Washington has also pushed back on key elements of Iran’s proposed 14-point deal, signalling little immediate progress on de-escalation. 

Impact: Shipping risks remain elevated. Crew from recently seized vessels have begun returning home, highlighting ongoing maritime disruption, Al Jazeera reported.

For India, the spillover is widening. The fertiliser subsidy bill is set to overshoot its Rs 1.71 lakh crore target as energy-linked input costs rise. Higher crude prices are also pushing up import costs and could add to inflationary pressures.

Markets Recover but Oil Prices are Jittery Once Again

On Episode 864 of The Core Report, financial journalist Govindraj Ethiraj talks to Ambareesh Baliga, Market Expert as well as an excerpt from our extended interview with Neha Agarwal, MD & Head – Equity Capital Markets at JM Financial Institutional Securities.

• Markets recover but oil prices are jittery once again. Looking back at the last two months.

• Rupee hits fresh closing low

• India’s petrol consumption has risen while gas has fallen in April

• Emirates, Etihad announce they are returning to full capacity and flights

• Why you may not get to see the World Cup Football in India this year

• The IPO market in 2026 may outshine 2025, what could drive this?