Top stocks in India's EV charging megatrend

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Subscribe to enjoy similar stories. When it comes to electric vehicles (EVs), both investors and the media tend to focus on the makers of these vehicles. However, the other players in the EV ecosystem can often be the game changers.

Servotech Power Systems is one of the few listed companies in India focused on building EV charging infrastructure. The company, which was a penny stock until 2022, has garnered interest of late. This is evident in the 10x rise in the stock price in two years.

But Servotech is not alone. Several larger companies have also begun venturing into the EV charging space. Yet, there is little on the ground to suggest that India's charging infrastructure can be adequate to support growing demand for EVs over the next decade.

The international media has been particularly critical of the challenges that India's EV infrastructure presents. India's electric vehicle boom stalls over charging challenges, wrote Nikkei Asia. India's electric vehicle owners turned off by country's lack of charging stations, wrote South China Morning Post.

Recognising the bottleneck, the government recently notified the PM E-DRIVE scheme. The scheme will have an outlay of ₹10.9 trillion and shall be implemented until March 2026. It aims for faster adoption of EVs, setting up of charging infrastructure and development of EV manufacturing eco-system in the country.

As per the plan, EVs should ideally comprise 30% of new private vehicle registrations in India, amounting to 80 m EVs, by 2030. To support this dramatic rise in EV adoption, India will need a total of 3.9 million public and semi-public charging stations, for a ratio of one station per 20 vehicles. The current ratio is approximately one charging station per 135 EVs.