A total of 13,92,265 Electric Vehicles (EVs) are being used on the roads of India as on 3rdAugust, 2022 as per the information received from Ministry of Road Transport and Highways.
Further, sale of EVs in FY 2021-22 has gone up over three times as compared to sale of EVs in FY 2020-21 from to 1,34,460 (e2W:41048, e3W-88391 and e4w-5021) to 4,28,224.00 (e2W: 2,31,434, e3W: 1,77,884, e4W:18,906) as per the information available on VAHAN-4 centralized database of RC (Registration Certificate). The increase in 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 electric vehicles. The incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-3W and e-4W with a cap 20% of the cost of vehicle. Further, the incentive/ subsidies for e-2W has 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, following steps have been taken by the Government for adoption of electric vehicles in the country:
- The Government on 12th May, 2021 approved the Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. Drop in battery prices will result in cost reduction of electric vehicles.
- Electric Vehicles are eligible for incentive under PLI scheme for Automobile and auto Components, which was approved on 15thSeptember, 2021 with a budgetary outlay of Rs. 25,938 crore for a period of five years.
- 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%.
- Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- MoRTH issued a notification advising states to waiveroad tax on EVs, which in turn will help reduce the initial cost of EVs.