The cost of electric vehicles (EVs) has been dropping in recent years. One of the prime reasons is that Many countries’ governments trying to give incentives to boost EVs consumption as well as EVs are becoming more affordable is due to advancements in technology.
Electric-powered engines are greater green than gasoline-powered vehicles and may be extra environmentally friendly. The engine doesn’t produce any emissions, which include greenhouse gases, that could make a contribution to climate change. Electric cars also can be greater less expensive to function, due to the fact there’s no need for gas or oil.
India has a lot to gain by converting its ICE (Internal Combustion Engines) vehicles to EVs (Electric Vehicle) at the earliest. Its oil-import bill would be considerably reduced. ICE vehicles are a major contributor to pollution in cities and their replacement with EVs will definitely improve air quality. There is a considerable possibility that we can become leaders in small and public electric vehicles.
India has over 170 million two-wheelers. If we assume that each of these vehicles uses a little more than half a litre of petro per day or about 200 litres per year, the total amount of petrol used by such vehicles is about 34 billion litres. So, if we convert to EVs then this may save crores of the worth of imported oil and it will be Electric Vehicle Revolution.
There is a real possibility of getting this done in the next 5 years. The cost of electric vehicles (EVs) has been dropping in recent years, making them more affordable for the average consumer. In addition, government incentives can help offset the cost of purchasing an EV.
This would however require innovation, a policy regime that encourages access to the latest technologies by the Indian industry to achieve global competition. The Indian government trying to boost this industry through the FAME-II scheme.
One can feel that purchasing an electric vehicle is costlier than buying an ICE vehicle, but that is only because of the higher upfront cost. So, governments around the world are starting to recognise the importance of clean technology and are offering incentives to encourage the adoption of electric vehicles. These incentives can include tax breaks, subsidies, and other financial assistance.
The key process for getting Government Incentives are:
- Purchase Incentives
- Interest Subventions
- Road Tax Exemption
- Registration Fee Exemption
- Income Tax Benefit
- Scrapping Incentives
National Incentives in India
Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles or FAME, is currently India’s flagship scheme for promoting e-mobility. Currently, in its 2nd phase of implementation, the FAME-II scheme is being implemented for a period of 3 years effective from April 2019 with a budget allocation of 10,000 Cr. The intensives offered in the scheme are:
|Total Approximate Incentives||Approximate Size of Battery|
|Two-wheelers: Rs 15000/-per kWh up to 40% of the cost of the vehicle||Two-wheelers: 2 kWh|
|Three-wheelers: Rs 10000/- per kWh||Three-wheelers: 5 kWh|
|Four-wheelers: Rs 10000/- per kWh||Four-wheelers: 15 kWh|
|E-Buses: Rs 20000/- per kWh||E-Buses: 250kWh kWh|
|E-Trucks: Rs 20000/- per kWh|
The FAME-II scheme was originally intended for a period of three years ending March 31, 2022. Earlier this year, it was extended to March 31, 2024.
” The sales of EVs have accelerated post FAME-II scheme which brought confidence among government shareholders to continue the scheme. With time, the effects will compound and shape consumer behaviour in a positive direction towards e-mobility” said Sohinder Gill, Director General of EV industry lobby group Sociaty of Manufacturers of Electric Vehicles.
State Incentives in India
Every state offers some incentives to you for adopting electric vehicles. To find out more about state-level policies, click here.
For more details, you can also visit the official website of Govt. of India.