• Written by - • Last Updated: Aug 26, 2025, 05:27:15 PM IST

How to Start EV Business in India | EV Franchise Opportunities

India is steering into a transformative era of electric mobility. With FAME II, state subsidies, and consumer awareness on the rise, 2025 is a breakout year for entrepreneurs seeking to enter the EV space.

Whether you’re planning an electric vehicle dealership, EV charging station franchise, battery swapping station, or electric scooter showroom, this guide outlines how to start, where to invest, and what to expect.

Why 2025 is the Breakout Year for EV Franchising in India

According to SIAM, EV sales in India reached over 15 lakh units in FY 2023-24, marking an 80% year-on-year increase.

Government initiatives driving growth:

FAME II Extended till March 2024 with ₹10,000 Cr in subsidies
PLI Scheme for battery manufacturing: ₹18,000 Cr allocated
GST at just 5% on EVs and charging equipment
State EV policies offering capital subsidies, tax waivers, and low-interest loans

Result: Tier 2 and Tier 3 cities are showing unprecedented EV adoption rates.

Top EV Franchise Opportunities in India (2025)

1. 🚘 Electric Vehicle Dealership

OEM	Initial Investment	Payback Period	Key Benefits
Tata EV	₹50–70 Lakhs	24–30 months	Strong brand, lead generation
Hero Electric	₹25–35 Lakhs	12–18 months	Low entry barrier
Ather Energy	₹40–50 Lakhs	18–24 months	Tech-driven premium support
Ola Electric	₹30–40 Lakhs	15–20 months	Youth-driven high demand

FAQ: Is this viable in smaller cities?
Yes. Cities like Mysore, Patna, and Nashik are emerging as strong EV hubs due to lower real estate costs and increasing awareness.

2. ⚡ EV Charging Station Franchise

Top Operators: Tata Power EZ Charge, ChargeZone, EVRE, Zeon Charging

Setup Cost: ₹12–20 Lakhs
Revenue Model: Pay-per-use, subscription, fleet partnerships
Monthly Income: ₹60,000 to ₹1.2 lakh
ROI Timeline: 2–3 years

✅ Tata Power plans to double its 4,000+ charging stations by 2025.

FAQ: Can I use solar energy?
Yes. Solar can reduce operational costs by up to 40% (MNRE, 2024)

3. 🔋 Battery Swapping Franchise

Franchise Partners: Sun Mobility, Bounce Infinity, RACE Energy

Ideal for: 2W & 3W segments
Investment: ₹10–15 Lakhs
Space Needed: 500–1000 sq.ft.
Monthly Revenue: ₹75,000–1.5 Lakhs

Expert Tip: Swap stations near residential clusters and delivery hubs have faster ROI.

4. 🛵 Electric Scooter Dealership

Top Brands: PURE EV, Ampere, Ola S1, Okinawa

Setup Cost: Starts at ₹12–20 Lakhs
Add-on Revenue: Accessories, insurance, AMC, merchandise
ROI: 1.5–2 years

FAQ: Which scooters give the best ROI?
Ola and Ather offer high resale value and longer battery warranties.

ROI Comparison of EV Business Models

Franchise Type	Avg. Monthly Revenue	Margin	ROI Period
EV Dealership	₹3–5 Lakhs	12–20%	2–3 years
Charging Station	₹60k–1.2 Lakhs	30–40%	2–3 years
Battery Swapping	₹75k–1.5 Lakhs	25–35%	1.5–2 years
Scooter Franchise	₹2–3 Lakhs	15–22%	1.5–2 years

Tip: Add services like insurance, finance, and AMC for 20–25% margin boost.

Government Incentives for EV Businesses

FAME II Subsidy: Up to ₹10 lakh per business
Tax Deduction: ₹1.5 lakh under Sec 80EEB for EV loan interest
State Benefits:
- Maharashtra: ₹1 lakh per vehicle
- Gujarat: 50% infra support
- Delhi: Road tax waiver

How to Start EV Business in India: Step-by-Step

Step 1: Choose Your Segment

EV Dealership
Charging Station
Battery Swapping
Scooter Franchise

Step 2: Market Research

Check local EV adoption
Study state incentives
Analyze competitors

Step 3: Financial Planning

Secure funding via NBFCs or govt loans
Keep 10–15% for contingency

Step 4: Setup & Licenses

Choose locations with parking & power
License not needed for public chargers, but board permission is

Case Study: Tier 2 Success Story

Name: Priya R.
City: Coimbatore
Franchise: Zeon Charging
Investment: ₹15 Lakhs
Monthly Income: ₹1.1 Lakhs
Break-even: 17 months

Her Strategy:

Partnered with delivery fleets

Tied up with colleges

Ran local EV awareness drives

Challenges to Consider

High upfront cost (dealerships & fast chargers)
Power reliability in rural zones
Consumer myths on safety & charging
After-sales dependency on OEMs

Final Thoughts: EV Is Now, Not the Future

2025 is the year to act on India’s green mobility opportunity. Whether you’re an investor, dealer, or entrepreneur, the EV franchise space is full of potential, especially in tier 2 cities.