No matter how long you run, the distance appears only on the screen: You are still on the belt. For Indian companies setting up public charging stations (PCSes), the narrative is similar - the charging points multiply, but the needle on utilisation and profits moves little.
It has been over two decades since Reva launched India's first commercial electric vehicle (EV). But India still has one of the fewest PCSes among major economies. At the same time, it is one of the fastest-growing EV markets. That begs the question, why are financiers hesitant and investors circumspect? PCSes are bleeding there is much better earnings visibility for a small petrol pump for the same investment that goes into a PCSes, interviews with several industry officials show.
"Given the relatively high capital cost of close to ₹30 lakh per PCSes and relatively high operating costs, utilisation becomes critical," said Vinutaa S, sector head at ratings agency ICRA. Utilisation is low at around 1015 per cent, she said. Industry sources peg it as low as 5 per cent, with customers complaining of several nonworking chargers.
"If you spend 250 lakh on a small petrol pump, there's much more visibility to breakeven than you get from setting up a couple of PCS of 60Kw each," said Ashish Deswal, founder, EarthtronEV. Moreover, one can fill 20 cars for the time it takes to charge a Nexon. But Deswal is still betting on the future of electrification.
Earthtron has 250 charging ons serving fleets and NEW ANA PCSes, is targeting 1,000 facilities by December 2024. But Deswal is counting on committed fleet operators to drive earnings, rather than wait for walk-ins.
Denne historien er fra October 25, 2023-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 25, 2023-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
KEEPING UP WITH BRAZIL
If India wants to become a biofuel superpower like Brazil, it needs to get its ethanol 2.0 policies right
Indian cities reduce PM2.5 levels by 27% in 6 yrs: Report
Indian cities achieved an average 27 per cent reduction in PM2.5 pollution levels from 2019 to 2024, with those under NCAP alone recording a 24 per cent decline, a new report has found.
India adding N-power faster than global peers
India's nuclear power generation has grown twice as fast as the rest of the world in recent times.
Manmohan Singh was unfailingly measured, thoughtful and wise
It is both an honour and pleasure to have been invited to address this event in honour of Dr Manmohan Singh, the greatest man I have had the privilege of knowing.
Compare cited reasons with policy terms before challenging decision
Health and general insurers paid 82 per cent of claims by volume and 71.3 per cent by value (₹1.17 crore), according to the Insurance Regulatory and Development Authority of India's (Irdai's) annual report for 2023-24.
PVR Inox shares fade to black: Down 23%
Shares hit 44-month low as HMPV scare rattles market
Indo Farm shares up 27% on mkt debut
Shares of Indo Farm Equipment on Tuesday ended with a premium of over 27 per cent against the issue price of ₹215. The stock started the trade at ₹258.40, reflecting a premium of 20.18 per cent on the BSE. During the day, it jumped 33.44 per cent to ₹286.90. Shares of the firm ended at ₹272.70, up 26.83 per cent. At the NSE, it listed at ₹256, up 19 per cent. The stock ended at ₹273.69, a gain of 27.29 per cent. The company's market valuation stood at ₹1,310.37 crore.
Zomato shares fall 5% after Jefferies downgrade
Food aggregator Zomato's shares bled on Tuesday, as the stock plunged up to 5 per cent to hit an intraday low of ₹251.40 per share.
Q3 updates point to strong growth ahead for jewellery companies
Two leading listed jewellers, Titan and Kalyan, have just released their pre-quarterly updates for the third quarter of the current financial year (Q3FY25).
Equities may deliver 8-12% in 2025, says ABSL MF
In a year that is poised to be one of macroeconomic turbulence, with significant policy shifts and global trade uncertainties, investors should consider asset allocation strategies to capitalize on gains in all asset classes while reducing risks, Aditya Birla Sun Life Mutual Fund (ABSL MF) said in its outlook for 2025.
