Electric vehicles have gained a lot of popularity in the last one year. The government has also revealed that there has been a huge influx of electric vehicles on Indian roads year after year. A new statement from the Ministry of Heavy Industries revealed that there are around 8.77 lakh active electric vehicles on Indian roads as of December 8.
According to a recent statement by the government, the second phase of FAME has led to an increase in the number of electric vehicles on Indian roads. This information was shared by the Minister of State for Heavy Industries, Shri Krishna Pal Gurjar in a written reply to a question in the Lok Sabha on Tuesday.
Gurjar said that under the second phase of the FAME-India scheme, buyers of electric vehicles are provided incentives in the form of advance deduction in the purchase price of electric vehicles. This reduction in price helps manufacturers price products in direct competition with ICE vehicles. While this cut has not brought down the price of big electric cars in India, the electric scooter segment has seen tremendous growth.
Gurjar said the two Production Linked Incentive (PLI) schemes implemented by the Ministry of Heavy Industries to promote manufacturing of electric vehicles helped garner sales numbers for electric vehicle manufacturers.
These are the two PLI schemes that helped electric vehicle OEMs:
The Union Cabinet on May 12, 2021 approved a Production Linked Incentive (PLI) scheme for setting up of manufacturing facilities with a total manufacturing capacity of 50 Giga Watt hour (GWh) for Advanced Chemistry Cell (ACC), Battery Storage in India. Approved. With an outlay of Rs. 18,100 crores for 5 years.
The government approved the Production Linked Incentive (PLI) scheme for automobiles and auto components with a budgetary outlay of Rs. 25,938 crore over a period of five years. Electric vehicles are covered under the Production Linked Incentive (PLI) scheme for automobiles and auto components.
Apart from PLI, the rising cost of conventional fuels such as petrol and diesel has pushed users towards either more economical options such as CNG or electric powertrains. The growth of the Indian EV ecosystem, which includes the charging network, is expected to boost sales in this segment.
Sarkar’s post explaining why there are more electric vehicles on Indian roads this year appeared first on BGR India.