How to Start an EV Charging Business in India – Cost, License & Profit Guide (2026)

Why 2026 is still the right time to enter?

In India, EV sales are currently increasing at a rate of over 30% annually. Nevertheless, the public charging infrastructure is growing at a pace significantly lower than the uptake of electric vehicles. The long-term policy for the charging business is secured from the perspective of 30% electric vehicle penetration predicted in the 2030 government vision, PM E-DRIVE, and the state’s EV policies.

The next two to three years are your window of opportunity to secure prime locations before the market becomes saturated if you are serious about launching an EV charging business in India.

Business model choice: franchise vs independent

Before purchasing a single charger or applying for a power connection, you need to make a crucial strategic decision: Do you want to be a network partner or a brand builder?

Franchise / Network Partner

Pros
Lower tech risk, strong brand, ready app & payment system, central maintenance

Cons
Revenue share cuts margin; limited control on pricing, design

Best suited for
Landowners, first-time infra investors

Independent Brand

Pros
Full control on pricing, branding, partnerships, and expansion; higher upside

Cons
Higher capex, need your own software, stronger tech & ops capability

Best suited for
Entrepreneurs building multi-city networks, tech-driven founders

You can even combine both, start with a franchise to learn the business, and slowly add independent sites later.

Cost breakdown for an independent EV charging station

The cost structure is similar to the franchise model but without a franchise fee and with more software responsibility.

AC slow / Level 2 charger
Typical Range: ₹1–2 lakh per unit
Notes: Ideal for offices, apartments, and long-term parking

DC fast charger (50–100 kW)
Typical Range: ₹7–20 lakh per unit; up to 40 lakh+ for ultra-fast
Notes: Needed on highways, busy city hubs

Electrical infrastructure
Typical Range: ₹5–10 lakh
Notes: Transformer, switchgear, cables, meters

Civil works & site development
Typical Range: ₹2–5 lakh
Notes: Foundations, resurfacing, canopies, and lighting

Software & IT
Typical Range: ₹1–3 lakh initial; recurring licence
Notes: OCPP-based CMS, mobile app, payment gateway

Approvals & professional fees
Typical Range: ₹0.5–1 lakh
Notes: Designs, liaison, safety certifications

Most standalone public stations end up in the ₹12–30 lakh range for one mixed AC+DC site, similar to the lower end of franchise projects but with additional software responsibilities.

Licensing: a clear checklist for your EV charging business

What You Need to Arrange Before Starting

Right Power Setup: You just cannot run a station without "fuel." Obtain a commercial electricity connection and also make sure that your sanctioned load is high enough to bear the chargers you intend to install.

Foundations of Legal & Banking: Make your venture official. Registration of a proprietorship, LLP, or a private limited company is required. You will also require a dedicated current bank account and a GST number for handling transactions.

Proof of Location: It is important to have evidence that you are eligible to utilise the land. Accordingly, if you are a tenant or need to own land, then ensure that the necessary documents are available at all times.

Local Permissions: Don't risk being caught up in red tape later on. Overcome local hurdles now by obtaining a No Objection Certificate (NOC) from your local corporation or panchayat.

Safety & Compliance: This one’s non-negotiable! Make sure that your equipment has a BIS certificate and that you are complying with CEA standards, as well as state-specific SOPs that apply to EV charging, too!

What You Can Skip

No Distribution License Required: The Ministry of Power has already categorised the business of EV charging as a "service." Therefore, you do not require a license to distribute electric power.

No "Petrol Pump" Dealership License: You don't need fuel retailer permits.

Government incentives and policy tailwinds

PM E-DRIVE Support
Lower GST Rates (5%)
State Level Perks
Cheaper Power Tariffs
Better Grid Infrastructure
Preferential Green Electricity Tariffs

Pro Tip: Having a partner like Savekar helps you identify all applicable central and state incentives.

Profitability and realistic ROI

Utilisation (kWh/day)
Spread – Tariff vs. Cost
Net Investment

When Do You Break Even?

City Stations: 3 to 5 years
Highway or Fleet Hubs: 2 to 4 years

EV Charging Station Business Roadmap

Step 1: Research & Choose Model (2–3 weeks)

Key Actions: Study EV adoption rates, map existing chargers, choose model
Common Pitfall: Skipping competitor mapping

Step 2: Prepare a 5-Year Business Plan (2–4 weeks)

Key Actions: Capex, Opex, subsidies, scenarios
Common Pitfall: Overestimating utilization

Step 3: Lock Location & Secure Power (4–8 weeks)

Key Actions: Lease, power load, transformer
Common Pitfall: Weak site selection

Step 4: Finalise Hardware & Software (3–6 weeks)

Key Actions: Charger mix, OEMs, CMS
Common Pitfall: Prioritizing low cost over compatibility

Step 5: Construction, Installation & Testing (4–10 weeks)

Key Actions: Civil work, signage, testing
Common Pitfall: Poor site layout

Step 6: Launch, Marketing & Optimisation (Ongoing)

Key Actions: App listings, Google, fleet tie-ups
Common Pitfall: Neglecting continuous marketing

Common mistakes when starting an EV charging business

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Savekar's end-to-end support for your EV charging business

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FAQs

Q1. How much does it cost to start an EV charging business in India?
₹12 to ₹30 lakhs.

Q2. Can I start with only AC chargers?
Yes, but DC is needed for highways.

Q3. How long will it take to launch my first station?
4 to 6 months.