India Witnesses Surge in Electric Vehicle (EV) Adoption: 14.33 Lakh EVs Among 2.27 Crore Vehicles Sold in 2023

Government Schemes Powering Electric Vehicle (EV) Momentum

1. FAME India Phase 2nd: Launched with a budgetary outlay of INR 10,000 crore, this scheme, in operation since April 1, 2019, focuses on promoting hybrid/electric technology. It addresses the crucial issues of vehicular emissions and fossil fuel dependency. The scheme has been instrumental in elevating Electric Vehicle (EV) manufacturing and usage from 10,25,118 last year to an impressive 14,33,545 this year.

2. Production Linked Incentive (PLI) Scheme – ACC Battery Storage: Approved on May 12, 2021, with a budget of INR 18,100 crore, this scheme aims to establish a cumulative ACC battery manufacturing capacity of 50 GWh. It plays a pivotal role in supporting the growing Electric Vehicle (EV) ecosystem.

3. PLI Scheme for Automobile and Auto Components Industry: With a substantial budget of INR 25,938 crore, this scheme provides financial incentives to boost domestic manufacturing of advanced automotive technologies, including electric vehicles and their components.

FAME 2nd: Catalyzing Electric Vehicle (EV) Growth

Under the FAME 2nd scheme, the government is committed to supporting the following targets:

• E-Buses: 7,090 units
• E-Three Wheelers: 5 lakh units
• E-Four Wheelers (Passenger Cars): 55,000 units (including strong hybrids)
• E-Two Wheelers: 10 lakh units

Crucially, subsidies are provided for vehicles used in public transportation or for commercial purposes. Private owners of electric two-wheelers also benefit from these incentives.

Buyer Incentives and Subsidies

In line with the commitment to reduce upfront costs for Electric vehicle (EV) buyers, Phase-2nd of FAME-India offers:

• An upfront reduction in the purchase price of electric vehicles.
• Incentives linked to battery capacities, with a cap of 20% of the vehicle cost for e-three wheelers and e-four wheelers.
• Subsidies for e-two wheelers fixed at INR 10,000 per KWh, capped at 15% of the vehicle cost from June 1, 2023.

India’s robust commitment to Electric vehicle (EV) adoption is evident in the surge witnessed in 2023. The amalgamation of strategic schemes, incentives, and forward-looking policies is propelling the nation towards a greener and sustainable future in the realm of mobility. As the Electric Vehicle (EV) momentum accelerates, India stands poised for a transformative shift in its automotive landscape.