In this article, we will discuss Electric Vehicles in India. So, let’s get started.
Electric Vehicles in India
- Current Scenario of EVs in India
- EVs currently account for less than 3% of all vehicles sold in India. This is despite EV registrations crossing 50,000 units for the first time in December 2021, the highest ever monthly sale recorded.
- Although 80% of the volume of EVs sold is occupied by low-cost and low-speed three-wheelers, overall EV sales have picked up pace due to the rise of next-gen two-wheeler companies.
- As per the Accelerated e-Mobility Revolution for India’s Transportation (e-AMRIT) portal in India, only 7,96,000 EVs have been registered till December 2021, and just 1,800 public EV charging stations have been installed.
- While there has been a growth of 133% in the sales of EV from FY 2015 to FY 2020, when compared to sales of conventional ICE vehicles, the numbers seem insignificant. In FY 2021-22, only 1.32% of the total vehicles sold in the country were electric.
- Recent Measures have been taken regarding EV Manufacturing
- FAME and PLI Schemes: The Government of India has been pushing for greater localisation of EV manufacturing through multiple policy measures such as the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles Scheme-II (FAME-II).
- It has also launched several Production Linked Incentive (PLI) schemes for manufacturers in the automobile, automotive components and Advanced Chemistry Cell (ACC) battery sector to develop indigenous supply chains for critical EV components.
- Consumer-Centric Incentives: To boost sales, the government has also launched several consumer-centric incentives, such as tax exemptions, subsidies and interest subvention schemes, intended to trigger a mass demand for EV mobility options.
- Battery Manufacturing in Gigafactories: Recently, it announced the receipt of bids from 10 companies to avail PLI Scheme to manufacture Advanced Chemistry Cell (ACC) batteries locally.
- These next-generation batteries will be made in ‘gigafactories’, which signifies end-to-end battery manufacturing and large-scale production.
- Guidelines for Charging Infra: The government has also revised its guidelines for charging infrastructure, which includes a revenue-sharing model for use of public land.
- It capped off these announcements with a promise to implement a battery swapping policy, interoperability standards, and special mobility zones via the Union Budget.