India’s EV market ( Electric Vehicles) has shown no signs of slowing down over the past two months, defying earlier projections. The e-vahan portal, managed by the Ministry of Road Transport & Highways, has revealed a consistent surge in the registration of electric vehicles, with detailed month-wise statistics available in the attached ANNEXURE.
The Government, aiming to amplify the adoption of electric vehicles across the nation, has implemented a series of strategic measures. Among these, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME India) initiative stands out. Initially launched for a period of five years starting April 1, 2019, this scheme boasts a substantial budgetary support of Rs. 10,000 crores.
PLI Scheme Incentives for Electric Vehicles Gives Booster Energy to EV Market
Additionally, the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, sanctioned in September 2021 with a budget of Rs. 25,938 crores, offers incentives of up to 18% for electric vehicles, further stimulating their production.
Moreover, the PLI scheme focusing on the ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ holds a significant place in the government’s EV agenda. With a budgetary outlay of Rs. 18,100 crore, this initiative aims to establish a competitive ACC battery manufacturing setup, along with a provision for 5GWh of niche ACC technologies.
In a concerted effort to make electric vehicles more affordable and accessible, the government has reduced the GST on electric vehicles and charging stations to 5%. Additionally, the Ministry of Road Transport & Highways announced that battery-operated vehicles will receive green license plates and exemptions from permit requirements.
Furthermore, in a bid to alleviate initial costs, the Ministry issued a notification urging states to waive road tax on EVs, aiming to encourage their uptake and bolster the EV ecosystem across the country. These strategic interventions collectively aim to foster a conducive environment for the widespread adoption of electric vehicles, contributing to a sustainable and eco-friendly transportation landscape in India.