Electric vehicles sales, transportation & policy initiatives 

The Government of India is continuously making efforts to bring the electric vehicles revolution in India through various initiatives be it providing exemption of tax on electric vehicles or providing incentives under the FAME II (Faster Adoption and Manufacturing of Hybrid and EV). Today in this article we will see the sales of electric vehicles under the FAME II scheme and overall sales. To know the exact sales value, the EVs sales report is the best source to know the market potential in India. Let us know in detail about Electric vehicles sales transportation and policy initiatives. 

Electric vehicles sales transportation electrification 

The government adopted the Faster Adoption and Manufacturing of Hybrid and EV (FAME) scheme in 2015 with an outlay of INR 8.95 billion (USD 130 million). It provides subsidies for electric two and three-wheelers, hybrid and e-cars and buses.

The scaled-up FAME II, effective from April 2019, has an outlay of INR 100 billion (USD 1.4 billion) to be used for upfront incentives on the purchase of EVs (INR 85.96 billion) and for supporting the deployment of charging infrastructure (INR 10 billion).
According to India’s FAME II scheme reports as of 11th June 2021.

The sales of electric vehicles according to FAME India  

• 76011 Electric Vehicles are sold in India.
• 2,04,82,934 fuel (in litres) has been saved
• 53196 fuel saves per day
• 121063 C02 is reducing every day and
• 4,66,13,808 C02 has been reduced in kg.

The Indian market has now witnessed some decent growth in the EV industry in FY20-21. It has recorded the sales of 236,802 electric vehicles which includes the sales of electric two-wheelers (E2W), electric three-wheelers (E3W) and electric four-wheelers (E4W). It is decreased by around 20% to 2,36,802 when compared to 2,95,683 units in FY 2019-20.

Society of Manufacturers of Electric Vehicles (SMEV)

The Society of Manufacturers of Electric Vehicles (SMEV) in its financial year 2021 reports, the sales of electric two-wheelers was recorded at 143,837 units which include 40,836 high speed and 103,000 low-speed electric two-wheelers. The electric two-wheelers sales are decreased by 6% in FY21 when compared to the sales recorded in FY20 with 1,52,000 units.

The electric three-wheelers have recorded sales of 88,378 whereas 140,683 units were recorded in FY20. This is a 37.17 per cent sales decline. However, there is an increase in the number of sales in electric four-wheelers from 3,000 units in FY2019-2020 to 4,588 units in FY2020-21, which is a 52.93 per cent growth.

The Society of Indian Automobile Manufacturers (SIAM) is an apex national body representing all major vehicle & vehicular engine manufacturers in India. It has announced the sales of the automobile industry for May 2021.

According to the SIAM data,

• 41,536 units of Passenger Cars were sold in May’21, as compared to 143,449 units in May’19, resulting in a de-growth of (-) 71.04%.
• 88,045 units of Total Passenger Vehicles were sold in May’21, as compared to 226,975 units in May’19, resulting in a de-growth of (-) 61.21%.
• 1,251 units of Total Three-wheelers were sold in May’21, as compared to 51,650 units in May’19, resulting in a de-growth of (-) 97.58%.
• 352,717 units of Total Two-wheelers were sold in May’21, as compared to 1,725,204 units in May’19, resulting in a de-growth of (-) 79.56%.
• The total production of Passenger Vehicles, Three-wheelers, Two-wheelers and Quadricycle in May’21 was 806,755 units, as against 2,417,597 units in May’19, resulting in a de-growth of (-) 66.63%.

The auto industry is witnessing a de-growth when compared to the sales of vehicles from 2021 to 2019. 

Electrification of transportation

As per Niti Aayog and RMI report, the global technology trends and India’s rapidly growing economy have led to focus on electrification of transportation as the primary technology pathway to achieve this transformation.

This will bring India to become a global leader in new mobility solutions and battery manufacturing. To achieve these aims, at the central level, several ministries and departments have been involved in supporting the electric mobility transition including the Ministry of Road Transport and Highways, Department of Heavy Industry, Department of Industrial Policy and Promotion, Ministry of Finance, Ministry of Housing and Urban Affairs, Ministry of Power, Ministry of New and Renewable Energy, Department of Science and Technology and NITI Aayog.

Apart from that, all the 27 states have been developed, strategies for transforming their mobility systems and several states have formulated or are in the process of formulating their EV policies.

Electric vehicles sales transportation & policy initiatives 

Policy initiatives

Ministry of Power (Mop)

The Ministry of Power (MoP) issued a clarification for stating EVs as a service and not a sale of electricity which means no license is required to operate EV charging stations.

Ministry of Road Transport and Highways (MoRTH)

• The MoRTH has announced both private and commercial battery-operated vehicles will be given green license plates.
• It will facilitate the import of 2,500 electric vehicles compliant with international standards without the need for homologation all battery-operated, ethanol-powered and methanol-powered transport vehicles will be exempted from the requirement of permits.
• MoRTH amended Central Motor Vehicles Rules (CMVR), 1989 to allow driving licenses to be given for age group 16-18 years to drive gearless electric scooters and bikes up to 4 kWh battery size

Department of Science and Technology

• The Department of science and technology has launched a grand challenge for developing the Indian Standards for Electric Vehicle Charging Infrastructure.
• Bureau of Indian Standards (BIS) has notified general requirements for EV charging based on CCS & Chademo charging standards

Ministry of Finance (MoF)

The Ministry of Finance has rationalised the customs duty for all the categories of vehicles, battery packs and cells to support make in India and incentivise the uptake of electric vehicles.

NITI Aayog

• The NITI Aayog has released a concessionaire agreement for a public-private partnership in the operation and maintenance of electric buses in cities through the Operating Expenditure (OPEX) model.
• The Cabinet approved the National Mission on transformative mobility and battery storage. 

Currently,  the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme 2 (FAME-II) is in the news that it is likely to be extended by two years to 2024.

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