Customer adoption and the shift from internal combustion (IC) vehicles to electric vehicles (EVs) depend on several key factors. In an interview with Nitisha Dubey from EFY, Surendra Singh of Tvesas Electric Solutions Pvt Ltd, sheds light on these factors and outlines the main challenges in developing EV infrastructure.
Q. Can you provide an overview of Volttic and its unique offerings?
A. Tvesas Electric Solutions Pvt Ltd, operating under the brand name Volttic, provides EV charging infrastructure services across India. Our registered office is in Lucknow. Founded by Varun Chaturvedi and me, Tvesas Electric Solutions offers a comprehensive range of EV charging services. We provide both AC and DC chargers, catering to the EV charging needs of electric two-wheelers, three-wheelers, cars, commercial vehicles, electric trucks, and buses. Currently, we do not manufacture EVSE ourselves, but very soon, our in-house production unit will start manufacturing this hardware. We provide complete service and support for these chargers.
Q. What end-to-end services does Volttic offer for EV infrastructure development?
A. We provide complete end-to-end EV charging infrastructure services to our valued clients and partners, including location identification, site surveys, warranty, and AMC services. Our solutions cover various segments, with a significant presence in the B2B fleet segment, supporting employee transport solutions for large corporations. We operate on a build, own, and operate (OPEX) model, ensuring reliable infrastructure across India.
Q. How has Volttic expanded its EV charging infrastructure across India’s diverse locations?
A. Our high-capacity DC chargers (120kW-240kW) are installed at major airports for electric buses and fleets. Additionally, we serve public locations such as shopping malls, hotels, and highways, and collaborate with OEMs to develop charging infrastructure at customer, dealer, and distributor locations. With over 1000 charge points installed across 22 states and more than 100 cities, we cater to 150+ clients nationwide. Our charging portfolio includes almost an equal ratio of AC and DC EV chargers. In the AC charging category, charger ranges start from AC 3.3kW to 22kW,
while in DC fast chargers, the range starts from 15kW to 240kW.
Q. What unique business models does Volttic offer for EV charging?
A. We offer a unique bundle of services and diverse business models. Our franchise business model allows our partners and clients to invest in and own EV charging stations, similar to owning fuel pumps. However, they may need more expertise and technology to operate these stations in line with government guidelines. We manage their daily operations through our smart, technology-based CMS platform and mobile application. Our ground service expertise team eliminates and maintains operational challenges. Additionally, we offer a build, own, and operate (OPEX) business model, where we invest in and manage the charging infrastructure ourselves. This flexibility in business models, combined with our comprehensive service bundle, constitutes our unique offering, providing convenience and leveraging our experience and expertise for optimal infrastructure management.
Q. How can EV charger utilisation be boosted and attract early-stage investment?
A. Developing EV charging infrastructure is a capital-intensive business. The first critical factor is the location, which greatly influences utilisation. Attracting suitable locations, especially in B2B spaces, is advantageous due to their surplus power, simplifying setup and operations. The B2B segment is particularly promising, as many fleets are transitioning from ICE and CNG to EVs, driven by government norms. We develop and invest in the necessary infrastructure by partnering with corporate clients who provide space and power, creating a seamless ecosystem. However, suitable B2B locations are not always available, necessitating expansion into challenging areas like highways. High-capacity chargers (60kW-120 kW) on highways require significant and often costly power. To address this, we collaborate with toll plazas, highway operators, and roadside amenities such as dhabas and hotels, ensuring convenient charging locations for travellers who need to recharge for 30-40 minutes. Three major factors influence our success: location, power availability, and utilisation. Low utilisation rates (around 5-6%) impact ROI and extend the breakeven period, making it challenging to secure investments. Strategic locations, such as the Delhi-Mumbai highway, where we are the sole operator, show promise, but utilisation rates are still low due to the early stage of EV adoption. As adoption increases, we expect utilisation rates to improve, leading to higher profitability and revenue generation. The current low utilisation rates are a significant challenge, impacting the willingness of NBFCs and banks to provide loans or capital due to concerns about ROI and breakeven periods. It may take another 1-2 years for utilisation rates to rise from single to double digits, enhancing business profitability and attracting more investment.
Q. What are the main challenges in developing EV charging infrastructure in India?
A. The government has introduced provisions for separate EV connections to promote charging infrastructure. Operators can use existing connections, but dedicated EV connections benefit from subsidies on EV tariffs. Despite these incentives, significant upstream costs remain. A 60-kilowatt charger costs approximately 750,000 to 800,000 rupees, excluding additional expenses like transformer costs, cabling, fixed charges, and surcharges. These challenges are being addressed in stakeholder meetings with the government, which aims to provide future relief through guidelines. Another challenge is the uneven distribution of subsidies. While EV OEMs and customers receive subsidies, infrastructure developers do not, except for the EV tariff. Subsidies typically go to government tenders, leaving private CPOs without financial support. Additionally, there is a disparity in GST rates. A 5% GST applies when purchasing a charger, but service providers charge an 18% GST to end customers. Reducing this GST rate could benefit end customers and promote the industry. Access to capital loans from NBFCs and banks is another hurdle due to the industry’s nascent nature. Despite these challenges, Volttic has adopted unique business models, leading to profitability over the past two fiscal years, making it the only profitable startup in the EV charging space.
Q. How are you expanding EV infrastructure to tier-two cities?
A. Currently, most EV businesses are concentrated in metropolitan areas, which are our primary targets. However, momentum is gradually extending to tier-two and tier-three cities. We are working on a pan-India basis and targeting these locations as well. We have a presence in over 100 cities, including major metros, state capitals, smart cities, and several tier-two and tier-three cities.
Q. How do regional power costs impact EV infrastructure development efforts?
A. Land and power costs vary across different regions, affecting EV infrastructure development. According to EV tariff guidelines in India, electricity prices range from 4.5 to 7.5 rupees per unit. For instance, in Uttar Pradesh, EV tariffs are around 7.5 rupees, while in Delhi, they are 4.5 rupees. This discrepancy means that costs can vary significantly over short distances. We advocate for a uniform tariff across India to pass on consistent benefits to customers. With multiple stations across various cities, customers often question the differing prices. We cannot control these variations, as they are influenced by regional real estate and power costs. While our charger costs remain consistent nationwide, real estate prices do not. Although the government might not control real estate prices, it can standardise power tariffs to minimise cost differences and benefit customers.
Q. Who are your primary partners, and are you seeking additional vendors or partners?
A. We have numerous partnerships and continue to expand our database by onboarding more partners and clients into our portfolio. Our partners include real estate developers and infrastructure builders working on residential, commercial, or industrial projects. We assist them in developing infrastructure. Our target audience and partners also encompass B2B and B2C fleet operators, government agencies, toll operators, hotel owners, and many other segments.
Q. How do you generate revenue from your services?
A. We operate in both CapEx and OpEx. We sell hardware to our partners, develop the necessary infrastructure, and provide services to our end clients. Our revenue is generated through various business models and terms and conditions.
Q. How have your annual growth rates varied over recent years?
A. We grow at a rate of 2x to 3x each year. Last year, we experienced a growth rate of 150%. Before that, our growth rate was 250%, and before that, it was 300%. This consistent growth reflects our network building and revenue expansion, achieving 2.5 to 3 times growth annually.
Q. Could you share any upcoming announcements, developments, or plans?
A. We have surpassed 1000 charge points and aim to double this to 2000 within this fiscal year. In the long term, by 2030, our goal is to reach 100,000 charge points.
