5 Steps to Invest in EV Charging Station Business

Since 2019, the global electric vehicle (EV) market has seen rapid growth for several consecutive years. Countries like China and those in Europe have witnessed the share of electric vehicles in new car purchases surpassing 30%. This growth trend shows no signs of slowing down, and the consumption of new electric vehicles is expected to continue increasing. This surge has created significant market opportunities.

a car is charging at a charger

While competition in the home charging station market is intensifying, is the market saturated? Do newcomers still have opportunities? We believe the opportunities remain enormous.

The reason is that there is still immense potential for new and improved household charging station products. Those who entered the market early have an initial advantage or have established a brand, but brand positioning cannot be altered, so they lack flexibility and are encumbered by sunk costs, making it difficult for them to experiment with new products continually. This creates opportunities for new products. Therefore, this article will introduce why and how to invest in electric vehicle charging stations for newcomers or those looking to introduce new products.

Benefits of Investing in Charging Stations:

Every new business opportunity comes with both opportunities and risks. What are the benefits of entering the electric vehicle charging business?

1. The development of electric vehicles is an irreversible global trend, which means there are enormous market opportunities.

In 2022, global sales of new energy vehicles reached 10.65 million units. Some organizations previously predicted that the sales of new energy vehicles in 2023 would reach 14 million units. Fourteen countries, including China, the United States, Japan, India, Germany, France, Brazil, the United Kingdom, South Korea, Canada, Italy, Norway, Sweden, and Finland, account for approximately 90% of global new energy vehicle sales. From January to October 2023, the sales in these 14 countries increased by 30.4% year-on-year to reach 9.036 million units.

The International Energy Agency predicts that by 2023, the global number of electric vehicles on the roads will reach 125 million. With more electric vehicles on the roads, the issue of charging infrastructure will become increasingly significant, presenting a huge opportunity, whether for home charging scenarios or rapid public charging scenarios.

2. Government initiatives and subsidies

Numerous governments and departments are providing incentives and subsidies to promote the development of charging infrastructure, offsetting installation and operational costs for businesses, and encouraging both individuals and companies to invest in charging facilities and gain additional returns. Currently, the most significant incentives are for installing charging stations. In some area

3. Expanding Business Opportunities

Currently, a company’s social responsibility and reputation are gaining extensive attention from consumers. A report by Forbes found that 87% of consumers prefer to support companies that focus on social or environmental issues. Establishing electric vehicle charging stations supports the development of green and sustainable new energy initiatives.

More and more businesses are seeking to establish such charging stations on their premises, including shopping malls, hotels, restaurants, hospitals, companies, logistics and transport businesses, and workplaces, not only to attract external business opportunities and provide a more humanized consumer environment but also to attract more talent and create a better working environment for their employees.

application charging

The question then arises: How should one invest in electric vehicle charging stations?

Due to the immense market potential, investing in electric vehicle charging stations is an incredibly sound investment. However, before starting, the next necessary steps shall include:

Step 1: Research the local or target market to understand the demand

This encompasses understanding the number of new car registrations and electric vehicle registrations in your target market in previous years and the current year, available charging station numbers, charging station locations, and the growth of electric vehicles in the area. This information will help you make informed decisions.

Step 2:Financial feasibility assessments and return on investment period

This is a critical step in investing in electric vehicle charging stations, including installation costs, operational costs, maintenance of charging stations, marketing and promotion costs, and the forms of income you can receive, such as:

    • Building and operating your charging stations, potentially earning income from electricity and service fees.
    • Profits from the sale of charging stations and service fees for assisting customers in installing charging stations.
    • Co-operating or jointly operating charging stations with other businesses and individuals, enabling rapid expansion and capital operation.

With a thorough assessment of the investment return, you can make sound decisions.

 

Step 3: Selecting the appropriate charging station

Currently, there are three main types of charging stations: portable charging stations, wall-mounted charging stations, and direct-current fast charging stations. Each corresponds to different scenarios:

Charging Station Type Portable Charging Stations

 

Wall-mounted Charging Stations

 

Direct Current (DC) Charging Stations

 

Description Comparatively inexpensive, generally slower charging speeds. Simple installation or no installation is required.

 

Suitable for home users who do not frequently engage in long-distance travel but require daily charging. Intelligent remote control.

 

The fastest and most substantial type, using AC 380V and 400V input, converts it through a power module into DC power, enabling certain models of vehicles to reach an 80% charge in 15–30 minutes. Used for charging taxis, electric buses, private electric cars, electric trucks, and logistics vehicles.
Rated Voltage (Europe and China) Single-phase 220-230V, three-phase 380-400V, maximum current of 32A, reaching 22kW. Industrial plugs and adapters are needed for higher currents. Single-phase 220-230V, three-phase 380-400V, maximum current of 32A, reaching 22kW. AC 380V and 400V input, 30kW to 360kW, are available in the market
Rated Voltage (North America) Level 1: 110V to 240V, maximum current up to 40A. Level 2: 240V, Max. 50A-80A 480V AC input, 30kW to 360kW are available in the market
Advantages Flexibility, lightweight, and portable. Suitable for home and outdoor travel charging needs. Suitable for home users and public operations, providing subsidies for installation. Fastest charging, suitable for taxis, buses, and trucks, conveniently located on highways and in public areas.
Disadvantages Without circuit modifications and industrial plug installation, slow charging is possible. Remote control and bill viewing are generally not available. A higher initial investment means less flexibility. Highest initial investment.

Portable ev chargerE31 Wallbox case B60KW 120KW DC CHARGING STATION

Portable EV Charger                  Wallbox EV Charger                   DC Fast EV Charger

Step 4: Applying for permits

The processes and permits for installing charging stations vary in each country and region and are often closely related to local subsidy policies. It is advisable to consult local government departments before installation, as this can help you or your clients obtain incentives and subsidies, thus reducing investment costs and allowing for quicker returns.

Step 5: Develop a marketing strategy

This relates to the type of business you wish to engage in. If you only intend to sell electric vehicle charging stations, online marketing and relevant trade shows could be effective methods. However, if you aim to establish and operate charging stations, the focus of marketing will be on how to attract nearby electric vehicle owners to your charging station. You can collaborate with local car enthusiast clubs, electric vehicle dealerships, and communities to devise charging discount campaigns, among other strategies.

Reliable EV Charger Supplier in China

Miles Energy is a reliable wholesale supplier of electric vehicle charging stations in China. We not only manufacture portable ev chargers, wall-mounted charging stations, and DC charging stations, but we also collaborate in the sale of approved high-quality and reliable charging stations and accessories, including DC charging power modules and charging cables. Besides we are also providing the SKD or CKD solutions for the charging stations and help our customers who want to produce the ev charger locally.  With a professional team boasting over 10 years of industry experience, our products exhibit exceptional quality and stability, making them suitable for the majority of application scenarios.

Applications

Conclusion

As the electric vehicle market continues to develop and technology evolves, electric vehicles will become increasingly widespread. This will provide a significant opportunity for businesses to increase profits or for entrepreneurs to venture into this burgeoning field, as the market is new and demand is steadily increasing.

In the industry, we have witnessed numerous clients entering the field two or three years ago, seizing market opportunities, and achieving tremendous success, becoming well-known local brands. Compared to industries such as home, appliances, and mobile phones, competition in the electric vehicle charging industry is still relatively low. Are you considering entering this field or investing in charging stations and need advice on which type of charger is most suitable for you? Please feel free to contact us for professional assistance and advice.

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