The entire country recently rejoiced when the government announced\nthat India had discovered an untapped 5.9 million-ton stash of\nlithium reserves located in the Jammu and Kashmir region which will\nsignificantly help India reduce the dependence on other countries for the\nsupply of lithium, a key component in EV batteries.<\/p>\n\n\n\n
To support the target of reaching 30 per cent of all vehicles sold by 2030 to be EVs,\u00a0the government made purchase reductions across many vehicle categories, lowered road taxes, and scrapped and retrofit incentives. A phased manufacturing roadmap has been developed by the government taking into account the current state of EV manufacturing in India<\/a><\/strong>. The focus is also on the development of technology related to EV batteries, the vehicle’s safety and durability and reducing the overall cost of maintaining an EV to match it with conventional engine vehicles.\u00a0 By legislating favourable policies and aiding the manufacturers in the market penetration or giving incentives to the consumers for the acceptance of EVs over conventional vehicles. The government is not only trying to promote EV manufacturing in the country, but also the sale and acceptance of EVs through developing supporting infrastructure like encouraging the setup of EV charging stations, tax incentives for EV owners, public EV charging infrastructure development, and so on.<\/p>\n\n\n\n Till 31st<\/sup> July 2021, there were 380 electric vehicle manufacturers in India with 39 in the 2 wheeler segment, 81 in the 3 wheeler segment 19 in the 4 wheeler segment, while the rest working in other or 2 or more segments. With the increasing adoption of electric vehicles in the landscape, this number is only expected to increase further. With the current projections of the government, India will soon be emerging as the global hub of EV manufacturing. All these developments will significantly reduce the cost of production of electric vehicles and open an even bigger market.<\/p>\n\n\n\n The incentives by the government have been designed to encourage both\ndemand and supply. Both Central and state governments have been focussing on\npromoting the development of technology, developing manufacturing capacity for electric\nvehicles and assisting in the acceptance of EVs among consumers. Manufacturing of electric vehicles,\ntheir assemblies and parts\/ inputs of the sub-assemblies will be facilitated\nthrough a graded duty structure. The goal is to boost value addition and\ncapacity building of the sector significantly in the country. The following are\nsome of the schemes introduced by the government to promote the mobility of EVs\nin the country.<\/p>\n\n\n\n The National Electric Mobility Mission Plan 2020 is a composite scheme that is of the most important and ambitious initiatives undertaken by the GOI with a potential to bring transformational paradigm shift in the transportation and automotive industry. This plan is a culmination of collaborative planning for promotion of electric and hybrid mobility in the country through different policies and aimed to ensure a vehicle 6-7 million electric and hybrid vehicles in India by the year 2020 and indigenisation of technology to create a global leadership in some segments of automobile manufacturing.<\/p>\n\n\n\n To promote EV manufacturing in India, the government offered capital\nsubsidies through the Faster Adoption and Manufacturing of (Hybrid and)\nElectric Vehicles in India (FAME) India Scheme Phase II and state-level\nmeasures, FAME is currently India’s flagship scheme for promoting electric\nmobility in India. It was launched by DHI in 2015. FAME-II was implemented for\nthree years, i.e. 1st April 2019, with a budget allocation of 10,000 Cr,\nincluding spillover from FAME-I of Rs. 366 Cr. <\/p>\n\n\n\n Today, approximately 26 states in India, including Andhra Pradesh,\nKarnataka, Kerala, MP Uttrakhand, UP Goa, Gujrat, Meghalaya, Assam, West Bengal,\nOdisha and Rajasthan have endorsed their own EV policies.<\/p>\n\n\n\n The Indian government launched a 2.4 billion USD PLI project for\nAdvanced Chemistry Cell (ACC) Battery Storage manufacturing in May 2021 in\norder to build a local manufacturing capacity of 50 GWh of ACC. This would\nincrease capacity, localize the EV supply chain, and reduce import dependency.<\/p>\n\n\n\nIncentives by the Government to Boost EV Manufacturing in India<\/h2>\n\n\n\n
National Electric Mobility Mission (NEMMP)<\/h3>\n\n\n\n
Faster Adoption and Manufacturing of (Hybrid and) Electric\nVehicles (FAME) \u2013 I and II<\/h3>\n\n\n\n
State-Wise EV Policies<\/h3>\n\n\n\n
Production-Linked Incentive (PLI) Scheme<\/h3>\n\n\n\n
Relaxation in Driving Regulations<\/h3>\n\n\n\n