Mainstream Profit Models in the EV Charger Industry

An EV charger is a charging facility for electric vehicles (EVs), functioning similarly to fuel dispensers at gas stations. It can be fixed on the ground or walls and installed in public buildings (public buildings, shopping malls, public parking lots, etc.), residential community parking lots, or charging stations. It can charge various models of EVs according to different voltage levels.

The development of the EV charging and battery swapping industry is not only a result of the continuous increase in EV penetration but also a key factor influencing the development of the EV industry. The charging issue is regarded as the "last mile" in EV promotion and is crucial for the popularization of EVs. Accelerating the construction of supporting facilities such as EV chargers has become an urgent task for the industry's development.

In 2020, the General Office of the State Council issued the New Energy Vehicle Industry Development Plan (2021–2035), encouraging local governments to increase support for vehicle operations in fields such as public services and shared mobility, and to provide preferential policies for EV parking and charging.

At this stage, the profit models of the EV charger industry are as follows:

In 2016, five ministries and commissions including the Ministry of Finance issued the Notice on Incentive Policies for New Energy Vehicle Charging Infrastructure During the "13th Five-Year Plan" Period and Strengthening the Promotion and Application of New Energy Vehicles, which has provided financial rewards and subsidies for the construction and operation of charging infrastructure. In 2022, the Implementation Opinions on Further Enhancing the Service Guarantee Capacity of Electric Vehicle Charging Infrastructure issued by the National Development and Reform Commission and other departments clearly proposed to increase financial and monetary support, including two aspects: optimizing fiscal support policies and improving financial service capabilities. In addition, local governments have explicitly introduced policies related to subsidies for charger construction and charging operation. It can be seen that government fiscal subsidy policies are tilted toward the supply side, evolving from "new energy vehicle subsidies" to "charging facility construction subsidies" and then gradually transitioning to "charging facility construction subsidies + charging facility operation subsidies".

According to incomplete statistics, since 2022, many provinces and cities, including Henan, Shanxi, Shandong, Chongqing, and Guangdong, have successively introduced policies to encourage the construction of charging infrastructure.

The electricity price difference is the most direct source of income for operating enterprises and a relatively common profit model. Relevant regulations issued in 2014 clearly stipulate that charging facility operators may collect electricity fees and charging service fees from EV users, with electricity fees implemented in accordance with national regulations.

Functions such as EV charger reservation and parking space reservation are provided. Users can pay additional fees to obtain more convenient and personalized charging experiences.

EV chargers are used as new carriers for advertising. In addition to displaying content such as charger usage methods, precautions, safety instructions, and service notifications on the display screen, customized advertising services can also be placed on charger display screens and advertising light boxes. Other value-added services include vehicle rental and EV charger insurance services.

A group of high-quality users can be acquired through the charging management system and mobile APP. By calculating metrics such as charging duration and travel distance, advertising content or related services are pushed to increase user stickiness.

During the charging waiting time, additional business operations can be carried out, such as supporting services like convenience stores, auto repair shops, small entertainment facilities, and car wash shops. Humanized and diversified services help improve the utilization rate of EV chargers.

Other vehicle services can also be provided, including vehicle maintenance, fault repair, and technical support. Users can meet their basic vehicle maintenance needs while charging their EVs.