Government Update on EV Adoption Schemes

Key Highlights:

• Government updated schemes to boost EV adoption in India.
• Electric Mobility Promotion Scheme 2024: Rs 778 crore for electric two- and three-wheelers.
• Production Linked Incentive Scheme: Rs 25,938 crore for EV production.
• Rs 18,100 crore scheme for advanced EV battery technology.
• FAME India Scheme: Rs 11,500 crore, supporting over 16 lakh EVs and public transport electrification.

The Union government has provided an update on current schemes aimed at accelerating the adoption of electric vehicles (EVs) across India. These initiatives focus on increasing the use of electric two-wheelers, three-wheelers, and other categories of EVs, as well as supporting the development of advanced battery technologies.

Electric Mobility Promotion Scheme 2024 (EMPS)

• Budget: Rs 778 crore
• Duration: April 1, 2024, to September 30, 2024
• Focus: Incentives for purchasing electric two-wheelers (e-2W) and electric three-wheelers (e-3W).

Production Linked Incentive Schemes

PLI for Automobile and Auto Component Industry (PLI-AAT)

• Budget: Rs 25,938 crore
• Focus: Incentivizing the production of various electric vehicles, including e-2W, e-3W, e-4W, e-buses, and e-trucks.

PLI for Advanced Chemistry Cells (PLI-ACC)

• Budget: Rs 18,100 crore
• Focus: Boosting the production of advanced battery technologies crucial for high-performance EVs.

New Scheme for Electric Passenger Cars

A new scheme is being introduced to promote the manufacturing of electric passenger cars, aiming to attract global investments and position India as a leading manufacturing hub for electric vehicles.

FAME India Scheme: Overview

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme was introduced by the Ministry of Heavy Industries (MHI) in 2015 to promote the adoption of electric and hybrid vehicles.

Phase-I (2015-2019)

Budget: Rs 895 crore

Focus Areas: Technological development, demand generation, pilot projects, and charging infrastructure.

Achievements:

• Supported 2.8 lakh xEVs with incentives totaling ₹359 crore.
• Deployed 425 electric and hybrid buses with incentives amounting to ₹280 crore.
• Established 520 charging stations with Rs 43 crore.
• Funded technology development projects worth Rs 158 crore.

Phase-II (2019-2024)

Budget: Rs 11,500 crore

Focus Areas: Electrification of public and shared transportation, and creation of charging infrastructure.

Targets:

• 7,262 e-Buses
• 1,55,536 e-3 Wheelers
• 30,461 e-4 Wheeler Passenger Cars
• 15,50,225 e-2 Wheelers

Achievements (as of July 31, 2024):

• OEMs (Original Equipment Manufacturers) submitted claims for reimbursement of subsidies amounting to ₹6,825 crore for 16,71,606 electric vehicles.
• Out of the 6,862 sanctioned electric buses, 4,853 have been delivered.
• ₹800 crore was sanctioned for 7,432 public charging stations, with ₹560 crore already released.
• An additional ₹73.50 crore was sanctioned in March 2024 for 980 new fast-charging stations, with ₹51.45 crore released.

Also Read: Tata Motors Aims for Seamless Transition in Commercial Vehicle Split

CMV360 Says

The Indian government's ongoing investment in EV adoption through various schemes and incentives is impressive. Focusing on vehicle production and advanced battery technologies, these initiatives are driving the move towards greener transportation and positioning India as a key player in the global EV market.