Charging Ahead: Government Supercharges Local EV Industry

In recent years, the Indian government has taken significant steps to enhance the local manufacturing of electric vehicles (EVs) and to reduce the country’s dependence on imports. These initiatives aim to create a robust ecosystem for electric vehicles, contributing to environmental sustainability and economic growth.

  1. FAME India Phase II Scheme:
    • Launched in April 2019 with a budgetary outlay of ₹10,000 crore over five years.
    • Focuses on promoting hybrid/electric technology in transportation to reduce dependency on fossil fuels and address vehicular emissions.
    • Offers subsidies for e-buses, e-three-wheelers, e-four-wheelers used in public transportation or for commercial use, and privately owned electric two-wheelers.
  2. Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage:
    • Approved in May 2021 with a budgetary outlay of ₹18,100 crores.
    • Aims to establish a cumulative ACC battery manufacturing capacity of 50 GWh, thereby bringing down battery prices and reducing import dependency.
  3. PLI Scheme for the Automobile and Auto Components Industry:
    • Approved with a substantial budgetary outlay of ₹25,938 crores over five years.
    • Intended to enhance domestic manufacturing of Advanced Automotive Technology products.
  4. Subsidy Programs and Incentives:
    • The Department for Promotion of Industry and Internal Trade (DPIIT) is working on subsidy programs for electric four-wheeler manufacturers based on their local production investments.
  5. GST Reduction and Other Measures:
    • Reduction of GST on electric vehicles from 12% to 5% and on chargers/charging stations from 18% to 5%.
    • Implementation of green license plates for battery-operated vehicles and exemptions from permit requirements.
    • States are advised to waive road tax on EVs.
  6. EV Charging Infrastructure:
    • The Ministry of Power has issued guidelines for public EV charging infrastructure, focusing on creating affordable tariffs and enabling home and office charging.

Market Growth and Industry Response:

  • The number of electric vehicles registered in India has seen a significant rise. In 2023 alone, 14,33,545 electric vehicles were registered, showing a growing acceptance and demand for EVs in the Indian market.
  • International brands like Mercedes-Benz, Audi, Jaguar, and BMW have entered the Indian market with their EVs.
  • Investments are flowing into the Indian auto industry, with major stakeholders like Tata Motors, Mahindra & Mahindra, and Bajaj introducing electric models.


These comprehensive initiatives by the Indian government demonstrate a strong commitment to fostering the growth of the electric vehicle sector in India. By incentivizing local manufacturing, reducing import dependency, and encouraging consumer adoption through various measures, the government is paving the way for a greener and more sustainable transportation future.



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