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11 reasons why 2025 is the time to invest in an EV charging franchise
With the surge in the number of EVs in India, 2025 is the best time to invest in an EV charging station franchise. Here’s why
Introduction
Did you know that over 5.91 million EVs have already hit Indian roads as of April 2025? And that electric two-wheelers alone make up 59% of all EV sales in the country? The EV revolution is not on the horizon, it’s already here. From bustling cities to emerging towns, India’s roads are buzzing with electric mobility.
But there’s one big challenge: we need more charging stations, millions more. A Confederation of Indian Industry report highlights the need for 1.32 million charging stations by 2030 to support this rapid growth. Without an accessible charging network, the momentum could slow.
That’s where you come in. Investing in an EV charging franchise isn’t just smart; it’s a golden opportunity to be at the center of India’s green transformation. With strong government backing, rising EV adoption, and scalable profit models, there’s never been a better time to plug into this fast-growing industry. If you’re on the fence about making this smart investment in 2025, here’s a list of reasons that will make you wonder why you didn’t take the plunge already.
11 reasons why 2025 is the time to invest in an EV charging franchise
Investing in an EV charging station franchise isn’t just about staying ahead of the curve, it’s also a smart financial move. More and more people are turning to these green-plate vehicles, and so the demands for charging stations is skyrocketing too. Setting up an EV charging station in 2025 could be the best decision you make. Here’s why:
1. Booming EV Market in India
India’s EV sector is poised for explosive growth. In 2024 alone, EV sales rose by 20%, despite global demand cooling. More than half of the new three-wheelers, 5% of two-wheelers, and 2% of cars sold in the same year were electric. Automakers are ramping up their EV offerings, with nearly a dozen new vehicles expected to launch in 2025, targeting premium consumers. As the market grows, the demand for charging stations will only increase, providing a significant opportunity for franchise owners.
2. Government support and incentives
The Indian government is fully backing the EV transition with a ₹10,900 crore incentive scheme (PM E-DRIVE) aimed at promoting EV adoption and reducing pollution. This includes subsidies for electric vehicles, public transport, and incentives for infrastructure providers like charging stations. These government-backed initiatives make investing in an EV charging franchise more affordable and financially attractive, reducing the burden of the initial investment:
Incentives to EV Owners
To encourage the adoption of electric vehicles, the Indian government provides a range of incentives designed to reduce the cost of EVs and promote sustainable transportation. These incentives make EVs more affordable and accessible for Indian consumers, driving the shift towards cleaner mobility:
- Subsidies for EV purchases: The government offers direct subsidies to consumers purchasing electric vehicles. Under schemes like FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), consumers can avail of financial incentives when purchasing electric two-wheelers, three-wheelers, and cars.
- Reduced GST: The Goods and Services Tax (GST) on electric vehicles has been reduced to 5% from the standard 28%, making EVs more affordable for consumers.
- Financing options: The government supports various financing mechanisms, making it easier for individuals to finance the purchase of an electric vehicle. These financing options come with lower interest rates and special schemes from public and private banks aimed at promoting EV ownership.
- State-level incentives: Many state governments also offer additional subsidies, exemptions from road tax, and registration fee waivers for electric vehicle owners. These incentives vary from state to state but generally aim to make EVs more attractive to consumers.
- Battery swapping and charging incentives: As part of the push for widespread EV adoption, there are specific incentives to support battery swapping technology and the installation of home and public charging infrastructure.
These incentives help reduce the upfront cost of EV ownership and encourage more consumers to switch to electric vehicles, driving up the demand for EV charging stations.
Incentives help reduce the upfront cost of EV ownership
Incentives for EV Charging Station Owners
To build a robust network of EV charging stations, the government is offering various incentives to charging station owners. These incentives make setting up and operating an EV charging station more affordable and profitable for entrepreneurs:
- Subsidies for infrastructure setup: The Indian government provides subsidies and grants to support the establishment of EV charging stations through programs like the PM E-DRIVE scheme and FAME II. These subsidies cover a portion of the installation cost, making the initial investment in setting up charging stations more manageable for franchise owners.
- EV Mitra: The EV Mitra Initiative 2025 is a government that offers significant subsidies for setting up charging infrastructure, making it more affordable for both individuals and businesses. It promotes the creation of charging stations in public spaces, private properties, and along highways, ensuring that EV owners have easy access to charging facilities. In partnership with Tata Power and SBI, the scheme also offers preferential interest rates, simplifying financing for franchise owners and making the transition to electric mobility more seamless.
- Tax benefits: Charging station operators are eligible for several tax benefits, including reduced registration fees, tax exemptions, and other financial incentives aimed at lowering operational costs. This enables franchise owners to maximize profitability and invest more in infrastructure development.
- Reduced land costs: Under the government’s policies, land allotted for setting up charging stations in certain areas may be available at subsidized rates or for lease at favorable terms. This helps reduce the overall cost of establishing a station in key locations.
- Electricity tariffs: In some states, special electricity tariffs are available for EV charging stations, providing a reduced rate for power used in charging electric vehicles. This helps keep the operational costs low and increases profitability for station owners.
- Interest subsidy on loans: For setting up EV charging stations, business owners may be eligible for an interest subsidy on loans taken to fund the infrastructure. This subsidy helps reduce financing costs, making the initial investment more feasible.
- Additional benefits for public infrastructure: If charging stations are set up in public spaces or in collaboration with municipal corporations, owners can also receive additional incentives and support. These may include partnerships with city governments or other public entities, leading to higher visibility and access to more customers.
From offices and malls to housing societies, everybody is hosting EV charging stations. The trend is likely to rise because eco-conscious drivers now prefer offices and residences where they can charge their vehicles on the go.
3. Multiple revenue streams
Owning an EV charging station franchise offers multiple ways to generate revenue beyond charging fees. Franchisees can tap into additional income streams such as:
· Advertising: Digital billboards or in-station promotions.
· Leasing Property: Partnering with real estate owners to set up stations at high-traffic locations.
· Revenue Sharing: Collaborating with retail or restaurant chains to create mutually beneficial partnerships.
4. High Return on Investment (ROI)
The ROI potential in the EV charging space is substantial. With profit margins ranging from 25% to 50%, depending on location and usage, strategic placement in high-traffic areas can significantly boost profitability. As more consumers shift to electric vehicles, the utilization of charging stations will increase, driving higher returns. The combination of growing demand and government incentives makes for a highly lucrative investment.
5. Increased foot traffic
Placing an EV charging station at high-traffic retail locations like malls, restaurants, or office complexes can not only provide charging services but also drive foot traffic. Customers who come to charge their vehicles are likely to spend time in the area, benefiting businesses around the station. This makes the charging station an attractive proposition for partnerships with retail outlets and businesses.
6. Scalability
Once a charging station is set up, scaling up is relatively easy. You can expand your business by adding more charging points or opening additional stations in new locations. As the EV market continues to grow, your franchise can evolve without significant operational complexities, giving you the flexibility to expand as demand rises.
7. Future-proof technology
Investing in smart charging technology will be key to staying ahead of the curve. The EV battery market is set to jump from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028, making battery tech more efficient and affordable. Smart systems that optimize power usage, reduce costs, and offer better load balancing are on the horizon. By setting up early, franchisees can benefit from these innovations, leading to improved efficiency and profit margins.
8. Rising consumer demand
Fuel prices are rising, but EV operating costs remain low, encouraging more Indian drivers to make the switch to electric. Of the 28 new models of four wheelers being launched in India in 2025, 18 are going to be EVs.
With each passing day, the number of EV owners is growing, and so is the need for accessible and reliable charging infrastructure. The increasing popularity of EVs means that those who invest in EV charging stations now will be positioned to meet a rapidly expanding market.
9. Digital revolution in EV charging
We’ll also see the rise of subscription-based EV charging models, where users pay monthly for access to charging networks ensuring predictable income for station owners. With increasing digital integration, charging stations will become multi-use tech hubs, offering services beyond just power like navigation, Wi-Fi, digital ads, and real-time analytics.
10. Long-term growth
India’s EV story is only beginning. By 2030, it’s expected that 30% of all new vehicles sold will be electric, supported by favorable policies like FAME II and PM E-DRIVE. Tier 2 and Tier 3 cities are expected to become untapped goldmines for new installations, offering early investors the chance to become local leaders in the EV charging space.
11. Strategic partnerships and brand credibility
Forming partnerships with established brands and retail chains can help EV charging stations gain credibility and attract more customers. With the rise of eco-conscious consumers, a charging station franchise offers a prime opportunity to connect with this growing segment, while also benefiting from the brand recognition of trusted partners.
With multiple revenue streams, high ROI potential, and the opportunity to be part of India’s green future, now is the time to invest in this lucrative and sustainable market. Wondering how to set up an EV charging station franchise in India? Read all about it here.
Collaborating with established brands can provide credibility and access to a broader customer base. But the question remains, how to find the best EV charging franchise partner for your business. Let’s get you started.
The right EV charging franchise partner offers a well-established network
Finding the most compatible EV charging franchise partner
Launching a successful EV charging station starts with finding the right franchise partner, one that not only aligns with your business goals but also offers strong support, proven reliability, and the technology to keep pace with a fast-evolving market. A compatible partner should offer a well-established network, transparent business practices, and flexible franchise models tailored to various locations, whether urban, semi-urban, or highway-based. It’s important to evaluate their track record in infrastructure deployment, after-sales service, and digital integration for smooth operations and customer satisfaction. Look for a partner that invests in innovation, ensures regulatory compliance, and offers training and marketing support to help you scale.
Additionally, consider their market presence. A partner with a large, growing footprint will give your station greater visibility and access to an existing customer base.
In this space, Tata Power EZ CHARGE emerges as a highly reliable option. As the operator of India’s largest EV charging network, Tata Power combines reach, trust, and ease of use. Their robust digital platform, RFID-enabled systems, and durable, all-weather chargers ensure smooth and efficient service for users and franchisees alike. Backed by Tata’s century-long legacy, it’s a partnership built on innovation and credibility—making it a smart choice for those serious about entering the EV charging business.
Ready to explore Tata Power EZ CHARGE as your franchise partner? Enquire now and power up with India’s most trusted EV brand.
Bottomline
India is racing towards a cleaner, smarter transportation future, and charging infrastructure is at the core of this shift. Whether you're an investor, entrepreneur, or business owner, an EV charging franchise gives you a front-row seat to one of the most exciting growth stories of this decade.
By choosing to invest today, you don’t just ride the wave, you help create it.
Power India forward. Be part of the EV revolution.
Sources:
1. Step by step guide to starting your EV fleet franchise
2. Applying for an EV charging station franchise in India
3. Starting an EV charger franchise with E-Fill
4. Why an EV charging station franchise is a good investment
5. EV charging franchise benefits and how to start
6. Guide to electric charging franchise and EV charging solutions
7. Top 10 EV charging station franchise in India
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