Electric cars are the future, and they’re coming to India a lot quicker than you think. The tech has advanced rapidly in recent years, and the cost of electric cars is getting cheaper. Now, the only thing standing in their way is a lack of infrastructure. That’s where we come in. We’re buildin charging stations across the country, so you can be sure to find a place to fill up no matter where you are. It’s about time EVs went mainstream in India – and with our charging stations, that time is now.
The cost of a new car is always a big topic of conversation, especially when it comes to premium electric vehicles. Electric vehicles [EVs] are relatively new in the market and are more expensive compared to petrol or diesel cars in India. But the government has recently come forward with an initiative to make EVs more affordable by providing subsidies.
“ Electric cars are a big step in the direction of a cleaner environment ”
The government has taken this step considering the environmental benefits that EVs offer, which include zero local emissions, less noise pollution and reduced oil dependency.
The Government of India has introduced several policy measures to promote electric vehicles (EVs). These include subsidies for the purchase of EVs, lowering GST on them and levying additional tax on internal combustion engine cars and SUVs. Other than these, there are some other benefits that make buying an EV more desirable. Here we take a look at how government subsidies are likely to make car ownership more affordable in the coming days.
These EV subsidies/incentives are over and above those provided by respective State governments and applicable across the country.
What is a FAME subsidy?
- The Faster Adoption and Manufacture of (Hybrid &) Electric Vehicles in India scheme aims to encourage the use of electric vehicles. The scheme is aimed at boosting electric vehicle adoption and increasing the share of EVs in the total vehicle population. It was first launched on April 1, 2015, for two years and was later extended until March 31, 2018.
- The FAME subsidy is available on select electric vehicles such as hybrid/electric cars, buses, 3-wheelers and 2-wheelers.
- The subsidy amount varies according to the type of vehicle purchased and the battery capacity of the vehicle.
What is FAME II (FAME 2) subsidy?
- FAME 2 (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) Scheme is a part of the National Electric Mobility Mission Plan (NEMMP) 2020.
- It was launched in 2015 by the Department of Heavy Industry under the Ministry of Heavy Industries and Public Enterprises.
- The scheme aims to encourage faster adoption of electric and hybrid vehicles in India by offering upfront incentives on the purchase of electric vehicles and establishing necessary charging infrastructure for EVs
State-wise electric car subsidies:
Electric vehicles are gaining popularity in India, but the slower adoption of EVs relative to two-wheelers is a little surprising. While most states in India offer subsidies for electric cars and SUVs, there are fewer beneficiaries. In fact, many states have capped the number of subsidies at 10,000 units – a number that could be exceeded within just a few years if the government maintains its current stance on EVs.
The below table lists the state-wise government subsidies for electric cars and SUVs.
Subsidy on electric scooter and bikes:
In general, most Indian states have chosen to incentivise various aspects of the EV value chain, including manufacturing, charging infrastructure and purchase subsidies. Since most EVs that will be sold in India over the next four-five years will be two-wheelers and three-wheelers, a majority of these incentives are for these segments.
The table below for electric scooter subsidy and electric bike subsidy in each state.
The government in India is working aggressively to put out a credible infrastructure for electric vehicles, while technology is also fast evolving and the EVs of today are akin an IC-engine vehicle with same creature comfort, same driving dynamics and hat not. The charging infrastructure for EVs has been a talking point for sometime now and there are players who have already started planning for the future electric mobility requirements.
And so, the onus is both on manufacturers and governments to take this pricing issue seriously for pushing the EV penetration in India. This is where our Federal structure works beautifully. While central government is putting efforts by offering subsidies under FAME II scheme, state governments are further helping buyers by offering additional benefits.