The impact of electric vehicles on urban planning and infrastructure

As India accelerates toward becoming the world’s largest EV market by 2030, city planners and policymakers are reimagining traditional transportation systems.

The rise of electric vehicles (EVs) is pivotal in shaping transportation policies, influencing urban development decisions, and improving infrastructural design quality.

The rise of electric vehicles

India is one of the world’s fastest-growing markets for electric vehicles, projected to grow at a CAGR of 22.4% from $23.38 billion in 2024 to $117.78 billion by 2032, according to Wright research. The shift towards electric scooters, bikes, and cars marks a significant transformation in the transportation landscape.

Over the past few years, the industry, government, and ecologically conscious consumers have shown great inclination towards EVs due to their capability to reduce pollution, lower fuel requirements, and offer sustainable mobility solutions.

Highlighting this shift, the Indian government has set a target to achieve 30% electrification of the country’s vehicles by the end of the decade, as per Care Edge ratings. To support this growth, several incentives and policies have been introduced, including the National Electric Mobility Mission Plan and the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme. These initiatives aim to boost the development and adoption of EVs in the coming years.

Impact of EVs on urban development and Infrastructure

Urbanisation brings challenges like traffic congestion, air and noise pollution, and increased fuel prices in the transportation sector. Integrating EVs into smart cities and infrastructure planning is essential in driving this change forward.

Modern residential and commercial building projects worldwide are incorporating infrastructural changes to accommodate electric vehicles. The shift towards greener commute and living solutions significantly impacts residential preferences, as people increasingly seek housing facilities with EV charging stations. Urban developers recognise this trend, installing EV charging stations in new residential complexes and commercial buildings like offices and malls to meet EV users' needs.

Two countries which have successfully integrated EVs into their urban planning are Norway and China. Both countries had governments that made a deliberate choice to promote EVs, invested in public chargers and implemented policies to make EVs cost competitive. 

The rise of EVs has also prompted a need to remodel and redesign traditional parking facilities with dedicated charging stations, improving public access to electrical infrastructure. Keeping the same in mind, India established 12,146 operational public charging stations, with Maharashtra and Delhi leading this growth by 3,079 and 1,886 stations, respectively–nearly half of which are now in residential societies, a remarkable growth from almost zero just a year ago, as per IBEF.

This represents a remarkable growth of around 640% in the past two years, reflecting a rapidly expanding market. The transformation is not limited to parking lots but extends to smart city planning. Urban planners are implementing smart technologies to collect real-time data on available charging stations and manage the EV network efficiently.

Moreover, the integration of EVs into public transportation systems is becoming increasingly important. An example of this successful implementation is China, which accounts for over 90% of the world's electric buses and trucks in 2021, according to the International Council on Clean Transportation.

Cities are beginning to adopt electric buses and other public transit options to reduce emissions and reliance on fossil fuels. This shift not only improves air quality but also sets a precedent for a more sustainable public transportation system. Urban planning must consider the infrastructure needed to support these electric public transit options, including charging stations at bus depots and along transit routes.

Catalysts for further growth

As EV sales saw a 53% increase in July 2024, with 179,000 units sold, according to the Federation of Automobile Dealers' Association (FADA), India must implement stringent measures to sustain this trend. Currently, the ratio of charging stations to electric vehicles in India is 1:135, significantly lower than the global standard of 1 charging station for every 6-20 EVs. To bridge this gap, a robust nationwide charging network is essential. Installing more charging stations and making them accessible is crucial.

While the government has sanctioned the installation of 2,877 EV charging stations across various states, this effort must expand. Fast charging technology is also vital, reducing long EV charging hours and encouraging long commutes. Fast charging stations can charge an EV in minimal time, cutting down the total number of required stations.

Moreover, integrating modern technology into charging infrastructure is necessary to enhance user experience and efficiency. Smart charging stations that can communicate with vehicles, monitor energy usage, and provide real-time updates on availability are essential for supporting the growing number of EVs. Additionally, incorporating renewable energy sources, such as solar power, into charging stations will further reduce the environmental impact of electric vehicles and promote sustainable energy usage.

Government initiatives alone cannot ensure the long-term success of EVs in India. The private sector must also play a significant role. To boost private sector participation, the government, through its FAME initiative, has sanctioned Rs 800 crore for setting up EV charging stations and allowed 100% Foreign Direct Investment in the EV infrastructure, according to press information bureau (PIB). These approaches are crucial in advancing India’s journey toward sustainable mobility.

Public-private partnerships can significantly accelerate the development of EV infrastructure. Collaborations between government bodies, private distribution companies (DISCOMs), and local communities can lead to innovative solutions and investments in charging infrastructure, research and development, and public awareness campaigns. These partnerships can also facilitate the sharing of best practices and technologies, further driving the growth of the EV sector.

Additionally, the government should focus on building a comprehensive database of available charging stations across the country to improve access for EV users.

Gearing Up: The beckoning of a greener future

The rapidly-evolving electric vehicle market brings dynamic changes to urban development and infrastructure. As the world transitions to electric mobility, India must develop a robust plan to stay competitive. This includes integrating smart digital solutions into EV charging stations and smart city initiatives. Collaboration between the public and private sectors will help establish India as a reliable, efficient, and sustainable stakeholder in the EV sector.

In conclusion, it is essential to understand that the synergy between EVs and urban planning and infrastructure will drive the future of both industries. The continued growth and development of the EV market relies on the proactive efforts of all stakeholders, including government bodies, private companies, urban planners, and consumers. By working together, we can create a sustainable and efficient transportation system that meets the needs of the present and future generations.

(Rahul Goenka is the Director of ElectroRide, an electric vehicles retail chain)