With the rapid development of electric vehicles in recent years, the construction and operation of electric vehicle charging infrastructure has become a promising investment area. According to statistics, China currently has over 500 million electric two-wheeled vehicle users, and in 2018 alone over 30 million electric two-wheelers were sold. However, the lack of charging facilities has become a major pain point restricting the development of electric vehicles. In response, the state has introduced policies to encourage the construction of electric vehicle charging infrastructure. For businesses and investors, electric vehicle charging stations present huge market potential and diversified profit models.
Policy supports the construction of electric vehicle charging infrastructure
In recent years, the frequent occurrence of electric vehicle charging fires has aroused great concern from the state and society. The public security department has repeatedly issued notices on the prevention of electric vehicle fires, requiring the regulation of electric vehicle charging safety. As early as May 2018, the State Council’s Office of the Safety Commission pointed out in its policy document that new residential communities are encouraged to set up centralized parking and intelligent charging facilities for electric vehicles. The installation of electrical fire monitoring and visual surveillance systems is also promoted.
There is huge market demand for electric vehicle charging
Taking the charging market in college campuses as an example, there are over 30 million college students in China, with about 3 million electric bicycles, generating a demand for 300,000 charging piles. At present, this market is almost blank. Compared to residential areas, colleges have more young users who prefer mobile payment charging, and are more sensitive to pricing, which provides great flexibility for operators to explore the market.
Electric vehicle charging stations have multiple profit models
Operators of electric vehicle charging stations can realize profits mainly through charging fees, advertising revenue, insurance and financial cooperation, e-commerce platform building, and big data analysis. For example, usage data from charging stations can be analyzed to display real-time operation status and revenue, helping managers to grasp the system dynamics.
Low entry barriers and high return on investment
Investing in community electric vehicle charging stations has low entry barriers. With zero franchise fees, no deposit, rent or manual operation costs, the average investment can potentially be recovered within half a year and generate sustainable income for 5 years. The electric vehicle charging industry is still in its early development stage and has huge growth potential.
In summary, driven by national policy support and increasing market demand, investing in electric vehicle charging stations represents an attractive opportunity. This emerging industry has multiple profit models, low investment thresholds, and the potential for high returns.