Against the backdrop of India becoming one of the fastest growing electric vehicles market in the world, Hindustan Petroleum Corporation Limited (HPCL) has signed a Memorandum of Understanding (MoU) with Petromin Corporation, KSA (Kingdom of Saudi Arabia) to invest nearly $100 million with the goal of installing and operating up to 5,000 electric vehicle charging units at HPCL operated stations throughout India. These charging stations will offer both high-speed DC chargers and AC chargers as well.
Further to that, Petromin Express India, a subsidiary of Petromin Corporation, KSA will be partnering with HPCL to invest approximately $100 million to set up around 1,000 vehicle service centres at HPCL retail outlets in India.
In total, the corporation will be investing $700 million in partnership with HPCL in three strategic areas. Around $500 million will be invested with the goal of operating up to 500 fuel stations in KSA, the Middle East, and Africa, according to a MoU signed between the two giants. A joint venture as per the local laws and regulations will be formed.
The announcement was made at the India Invest Forum organised with Saudi Arabia’s Ministry of Investment at the G20 Summit, New Delhi.
With the aim to give a boost to the EV sector with respect to the multi-brand vehicle service workshops and EV charging stations, the investment will be achieved over the next 5 years.
Sanjay Nigam, CEO, Petromin India & SE Asia remarks, “The announcement of Petromin’s partnership with HPCL is a landmark moment to embark upon a game-changing vehicle maintenance network and EV charging network in India. Two strong brands coming together will build confidence in the minds of the customers.”
Future of EVs
Pushed by the $1.3 billion government plan to amplify EV manufacturing along with the last decade’s rising fuel costs and hyper-consumer awareness of the long-term cost benefits, EV sales are driving up. In fact, EV car sales are expected to inevitably enrich electrification across other forms of road transport, from two- and three-wheelers to heavy-duty trucks as well, according to an analysis by Systems Change Lab.
EVs accounted for 1.8% of new vehicle sales in 2021 and more than 4% in 2022 in India, as per the International Energy Agency (IEA). The agency suggests that India's average annual investments in electric vehicles (EVs) and private chargers will need to increase from about $210 million in 2016-2020 to $19-33 billion in 2026-2030, to enable the goal of EVs accounting for 35% of total vehicle sales by 2030 and thereby achieve carbon emission goals.
Along with better awareness, there has been an exponential growth in EV uptake in 2022, resulting in a 3X increase over the previous year, says a report released by the Confederation of Indian Industry (CII) on ‘Charging Infrastructure for Electric Vehicle’. Considering what this trend suggests, even in a business-as-usual (BAU) scenario of 40% year-on-year growth, about 106 million EVs will be sold every year by 2030. To achieve a ratio of 1:40 charging infra to EVs, India will need to install more than 400,000 chargers annually with a total of 1.32 million chargers till 2030.