Hyderabad being the capital of Telangana has many benefits compared to other cities as the policies are very friendly in terms of ease of doing business and Industrial infrastructure within the state. This is evident from the fact that Mahindra and Mahindra & MRF have their manufacturing base in the state along with R&D centers of ZF Global and Hyundai. When it comes to EV manufacturing, it has a dependency on power electronics which is well supported in the form of Tier 1&2 suppliers for the OEMs. Also, it is emerging as the IT Hub of India where many IT companies are making it a base in India thus making it a hub of upwardly mobile and high earning individuals who are not afraid to adopt something new which works in favor of EV as corporate policies also promote EV as a whole.
The root cause of acceptance of EV is the price hike of petrol and diesel across the country which has pushed the per kilometer running cost to over 6 rupees which is a bad sign for the mileage-conscious Indian buyer. Global warming is also a concern amongst the millennials who would want an eco-friendly and cost-effective solution to tackle the climate change issue plaguing the world as a whole.
The only roadblock that EV charging faces in Hyderabad or the country is the availability of products with competitive pricing and a network of charging stations. The city and its citizens can remove the bottleneck by upgrading the infra of their residential societies or home by installing EV charging stations which can be managed by a third-party software solutions provider. The best part of installing a station is, it is very cost-effective as compared to regular petrol pumps. So, Hyderabad is blessed with a strong supply chain of component manufacturers that can leverage it to become the first city in India to have a flourishing network of EV charging stations and our model can be replicated by the nation.
Last but not the least, the central governments final plan to rollout EV charging plan will play a very important role as it will help state governments to implement with time and efficiency. Once, the center develops the policy on pricing, location, and import duty on the components that are not manufactured in India then owing to the strong infrastructure in Telangana, Hyderabad can lead the EV charging race in India.
The author of this article is Samridh Singh, CEO, RikaRica
The views and opinions expressed are not of IIFL Securities, indiainfoline.com