The government of Goa to discontinue the subsidy for EV buyers.
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Over 13 lakh electric vehicles running on Indian roads: Ministry of Heavy Industries.

Under the FAME 2 scheme, buyers get an incentive of Rs 10,000/KWh for e-3W and e-4W and Rs 15,000/KWh for e-2W.

The Minister of State for Heavy Industries, Shri Krishan Pal Gurjar, today revealed data related to EVs in India. In a written reply in the Rajya Sabha today, he shared that as of 3rd August 2022, there are a total of 13,92,265 Electric Vehicles in India.

Number of EVs in different categories (as on 3rd August 2022):

  • Two Wheeler - 5,44,643
  • Three Wheeler - 7,93,370
  • Four wheeler and above - 54,252
  • Total - 13,92,265

From the data, it is clear that demand for Three-wheelers and two-wheelers EVs is higher than for Four-wheelers.

Further, the sale of EVs in FY 2021-22 has gone up over three times as compared to the sale of EVs in FY 2020-21 from 1,34,460 to 4,28,224.00.

The increase in the sale of EVs is attributed mainly to the incentive provided under FAME India Scheme Phase-II, provided to buyers of electric vehicles meeting FAME criteria in the form of an upfront reduction in the purchase price of EVs.

The incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-3W and e-4W with a cap of 20% of the cost of the vehicle.

Further, the incentive/ subsidies for e-2W have been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of vehicle w.e.f. 11th June 2021.

Further, the following steps have been taken by the Government for the adoption of electric vehicles in the country:

  1. The government on 12th May 2021 approved the Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country to bring down prices of batteries in the country. A drop in battery prices will result in cost reduction for electric vehicles.
  2. Electric Vehicles are eligible for incentives under the PLI scheme for Automobiles and auto Components, which was approved on 15th September 2021 with a budgetary outlay of Rs. 25,938 crores for five years.
  3. GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
  4. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
  5. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

Also Read: Record breaking Electric two wheeler sales in India in the first half of 2022.

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