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OMCs Plan Big to Expand EV Infrastructure in India

CIO Insider Team | Monday, 9 August, 2021
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As India's electric vehicle (EV) segment grows, the Oil Marketing Companies (OMCs) prepare plans of expansion to welcome these vehicles into their segment.

According to research by 'Prescient & Strategic Intelligence', the Indian EV industry is predicted to rise to roughly $ 707.4 million by 2025, with a 34.5 percent CAGR (Compound Annual Growth Rate).

Considering how the business landscape has been transformed by the COVID-19 pandemic, businesses are now put to the task of hastening preparations in the EV charging market.

The Indian Oil Corp.Ltd., (IOCL), the country’s largest refiner and marketer, has currently installed 257 charging stations upon its retail stations and is further planning to have another set of 1,800 stations this year. On the other hand, it has tied up with Israel's Phinergy and is engaged in inventing an aluminum air battery technology.

OMCs, on the other hand, predicts that petrol and diesel will expand by five to six percent in the near future, and that the transition to EVs will be slow and would not pose a danger to fossil fuel sales

Last week, Reliance BP Mobility Ltd (RBML), a joint venture between Reliance Industries and BP Plc, teamed with food delivery platform Swiggy to explore the use of EV in its fleet.

The partnership will promote the adoption of battery-operated electric vehicles, including the deployment of electric two-wheelers, with the use of a network of battery swap stations and Swiggy's delivery partners. RBML now operates 1,400 fuel stations and wants to expand to 5,000.

Over the next five years, RBML plans to install a thousand more battery swap stations at its retail locations, as well as residential and commercial complexes, malls, hotels, and business parks.

According to Morgan Stanley Research, India's two-wheeler EV penetration hit one percent in July and is expected to reach 10 percent by 2025.

“While RIL's competitors, such as IOCL, already have 28 battery swapping stations and are further into developing their B2C electrification capabilities, the partnership with Swiggy gives RIL access to potentially higher miles-traveled consumers, with Swiggy riders clocking 80-100 km daily”, says Morgan Stanley.

In recent months, the state-owned Hindustan Petroleum Corporation Ltd (HPCL) has partnered with three companies which are Convergence Energy Services Ltd (CESL), Tata Power, and Magenta EV Systems, to help with the installation of charging infrastructure at its retail locations.

The OMCs, on the other hand, predicts that petrol and diesel will expand by five to six percent in the near future, and that the transition to EVs will be slow and would not pose a danger to fossil fuel sales.

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