February 23, 2024

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Factors that help in the growth of electric vehicles in India

Factors that help in the growth of electric vehicles in India

Factors that help in the growth of electric vehicles in India

India is witnessing the growth of electric vehicles every day with the help of the government, automotive companies, startups, etc. Is the present growth rate is enough to achieve the aims of the government for 30% electrification of vehicles in India by 2030? Here, we are going to discuss three main factors that can help India to develop electric vehicles in the country.

The Indian government is taking many initiatives to promote and to adopt the use of electric vehicles in India. To cut down the import of oils and most importantly to reduce the pollution levels in the country. In that regard, the Union Cabinet approved Rs 10,000 crore under the second phase of FAME India (Faster Adoption and Manufacturing of Electric Vehicles in India) for the promotion of electric and hybrid vehicles. 

Electric vehicles growth is not only important for economic reasons but also for environmental purposes. The government is taking many initiatives such as reducing GST, taxes on electric vehicles and on charging equipment or stations along with the tax deduction on the interests paid on loans.

Last year the Minister of Finance and Corporate Affairs Nirmala Sitharaman announced the tax deduction of Rs 1.5 lakh on the interest paid on loans availed for purchasing electric vehicles. Government is making numerous efforts to boost up the EV industry in India.

What are electric vehicles?

Electric vehicles are well known for their smart driving and eco-friendly experiences and as an alternative to fuel and gas. There are also hybrid vehicles that use both an electric motor and a traditional gasoline engine. Hybrid vehicles can also help us in the early stages in the adoption and achievements of electric vehicles. The annual sales of EVs will grow up to 30,000 units in 2022 from merely 2,000 units in 2017.

List of 100 Electric vehicle Manufacturers in India 2019

When compared to other countries, the average vehicle prices are relatively low in India. The average price of a new car in the US is around $30-35,000 but it is $6-7000 in India. It is in the same in the case of motorbikes. A motorbike approximately costs $20,000 and $4-$5000 in the US and India, respectively.

To increase the growth and sales of electric vehicles in India, the cost of the electric vehicles should be reduced by providing sufficient incentives and the auto companies have to set prices within the budget range so that it becomes affordable to all the people. The government must launch more policies to encourage middle-class people to switch to electric vehicles.

Factors that help in the growth of electric vehicles in India

Need for Development charging infrastructure

  • Power network
  • Charging stations maintenance
  • Charging station installation

Manufacturing components locally

  • Battery cells
  • Motors
  • Controllers

Skills & knowledge

  • Careers in EV field
  • University and institutions offering regular long-term and short-term courses in EV technology.
  • Research in finding new ways for the development of EV technology 
  • Industries experts practical sessions to students

The three main factors for the development of electric vehicles 

  • Policies
  • Incentives
  • Charging infrastructure


The government should bring out some great policies in each and every States to bring the massive EV revolution in India. The EV policies will help the EV manufacturers, dealers and users to adopt electric vehicles without any hindrances. 

As it is charged to become a global hotspot for electric mobility, the government of India has created momentum through several policies to encourage the adoption of electric mobility.

Electric Vehicles challenges and solutions in India

The following 10 states and Union territories (UT) such as Andhra Pradesh (AP), Delhi, Karnataka, Kerala, Telangana, Maharashtra, Tamil Nadu (TN), Uttarakhand, Bihar, Uttar Pradesh (UP) have published draft electric vehicles policies or notified final policies which includes the fiscal, non-fiscal and other incentives.

Here are 10 Indian States & Union Territories EV policies & their objectives


Incentives are another main factor that can contribute to the growth of electric vehicles in India. Government is providing two-wheeler, three-wheeler and four incentives to push the electric mobility in the country. But the FAME II scheme is focusing much on commercial vehicles. 

Electric Four-Wheeler incentives under FAME Scheme-II

FAME II Scheme-Electric two-wheeler & their incentives amounts

Electric three-wheeler incentives under FAME Scheme-II

But these incentives are not sufficient to bring the EV revolution. The government should revise incentives in every electric vehicle categories such as electric two-wheelers, three-wheelers, four-wheelers, buses, trucks, etc. 

Charging Infrastructure 

Charging infrastructure is an important factor in India that helps to adopt EVs in large scales. As EVs doesn’t go for long distances on a single charge and it has to be charged after it completes its said range. Buying a larger and huge quality battery vehicle is a huge burden as the prices are not affordable to everyone.

According to the International Energy Agency (IEA), there were 50 lakh electric passenger cars in operations with 52 lakh charging points worldwide as of 2018. However, if the proper and adequate charging facility is provided to the people we can expect the success of the EV industry.

80 per cent of electric vehicles are charged at homes and offices it consumes a lot of time normally 8 hours. Installation of public charging stations will come to the rescue for the people who fear to pay their electricity bill, as some people think to charge an EV will cost them more. This will also save a lot of time which will encourage people to choose electric vehicles. 

According to the FAME II Scheme 

According to FAME India website, the electric vehicles sold in India under the FAME II Scheme as on 4th May 2020 is 280141. 


If you are an EV manufacturer or EV Dealer or EV Supporter who want to share news related to electric vehicles on our website, please send an email to crm@electricvehicles.in

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About The Author

Mastered in Journalism and I am a dedicated writer for ElectricVehicles.in since 2018. I am an EV enthusiast. I love to write about electric vehicles, technology, startups, people, fashion, and trends. Through my writings, I love to contribute to my team's efforts to reduce the pollution levels in the world, especially from India.

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