Indian Economy News

Over 13 lakh Electric Vehicles in use in India

  • IBEF
  • July 20, 2022

India has a total of 1,334,385 electric vehicles and 278,169,631 non-electric vehicles currently in use. The government of India has taken some initiatives to promote the use of electric vehicles in India including Maharashtra, Dadar and Nagar Haveli, Daman & Diu and Lakshadweep State/UT.

In order to reduce reliance on fossil fuels and address issues of vehicle emissions, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme was launched in 2015 with a total financial assistance of Rs. 10,000 crore (US$ 1.25 billion)

In order to lower battery prices in the country, the government approved a Production Linked Incentive (PLI) scheme on May 12, 2021, for the production of Advanced Chemistry Cells (ACC) in the country.

The Production Linked Incentive (PLI) scheme for automobiles and auto components, which was approved on September 15, 2021, covers electric vehicles and has a budgetary outlay of Rs. 25,938 crore (US$ 3.25 billion) for a period of five years. In addition to this, the GST on electric vehicles has been lowered from 12% to 5%, while the GST on chargers/ charging stations has been lowered from 18% to 5%.

According to the Ministry of Road Transport & Highways (MoRTH), battery-powered vehicles will be given green licence plates and be exempted from permit requirements.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.