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Govt explains why there are more electric vehicles on Indian roads this year

Under Phase-II of FAME-India Scheme, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles

Electric Vehicle

Electric Vehicle charging


Electric vehicles have gained immense popularity in the past year. The govt has also revealed that year-on-year there has been a massive influx of EVs on the Indian roads. A new statement from the Ministry of Heavy Industries has revealed that there are about 8.77 lakh active electric vehicles are on Indian roads as of December 8. Also Read - Indian smartphone market grew by 11% to ship 169 million smartphones in 2021

The Phase-II of FAME scheme has lead to the increment of the EVs on Indian roads, according to a recent statement made by a Govt representative. The information was shared by the Minister of State for Heavy Industries Shri Krishan Pal Gurjar in a written reply in the Lok Sabha on Tuesday. Also Read - This Indian EV company plans to open over 500 dealerships by end of FY22

Gurjar explained that under Phase-II of FAME-India Scheme, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles. This reduction of price helps manufacturers price the products in direct competition with the ICE vehicles. While the reduction hasn’t helped bring down the price of bigger electric cars in India, the electric scooter segment has witnessed tremendous growth. Also Read - EV owners take notice! Govt releases notification for at-home electric vehicle chargers

Gurjar stated that the two Production Linked Incentive (PLI) schemes that were implemented by the Ministry of Heavy Industries for the promotion of the manufacturing of electric vehicles helped gain sales numbers for electric vehicle manufacturers.

These are the two PLI schemes that helped electric vehicle OEMs:

-The union cabinet on 12th May, 2021 approved a Production Linked Incentive (PLI) Scheme for setting up manufacturing facilities for Advance Chemistry Cell (ACC), Battery Storage in India, with a total manufacturing capacity of 50 Giga Watt Hour (GWh) and with an outlay of Rs. 18,100 crores for 5 years.

-The government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components with a budgetary outlay of Rs. 25,938 crores over a period of five years. Electric vehicles are covered under Production Linked Incentive (PLI) Scheme for Automobile and Auto Components.

Apart from the PLIs, the growing costs of conventional fuel like petrol and diesel have pushed users to either more affordable options like CNG or towards electric powertrains. The growth of the Indian EV ecosystem, which also includes the charging network, is further expected to boost sales in the segment.

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  • Published Date: December 22, 2021 10:02 AM IST
  • Updated Date: December 22, 2021 10:16 AM IST



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