How the Government is Promoting Electric Vehicles in India
best electric scooter in India

With over 40 crore customers in need of mobility solutions by 2030, India is the world’s fifth largest car market, and with continued strong expansion, it could move into the top three shortly. However, growth in the number of automotive customers does not indicate an increase in conventional fuel consumption. In this blog, we will see what policies the government is rolling out to promote electric vehicles in India.

Indian EV Industry Outlook

Day by day the Indian market is seeing a rapid rise in petrol and diesel fuel prices. Electric vehicles provide the perfect alternative. The government is also trying its level best to educate and educate the public about the benefits of electric vehicles. In the last couple of years, both the state govt and the central govt rolled out many policies to promote electric vehicles in India.

India is one of a few countries that support the global EV30@30 initiative, which seeks to have at least 30% of new vehicle sales be electric by 2030. India has pledged to advocate for five factors for climate change – “Panchamrit” – at the COP26 in Glasgow.

India shared several ideas at the Glasgow summit, including using renewable energy to meet 50% of India’s energy demands, cutting carbon emissions by 1 billion tonnes by 2030, and reaching net zero by 2070.

The Indian government has taken several steps to develop and promote electric vehicles in India but its entire ecosystem, including the revamped Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme; the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) for suppliers; and the recently launched PLI scheme for Auto and Automotive Components for electric vehicle manufacturers.

According to the NITI Aayog, by 2030, 80% of two-wheelers will be electric two-wheelers in India. Not only that, 80% of three-wheelers, 40% of buses, and 30 to 70% of cars in India will be electric. As the country works toward its ‘Zero-Emission’ 2070 goal, cash and attention are being put into electric mobility.

Nitin Gadkari, Minister for Road Transport and Highways, stated in Parliament in March 2022 that during 2019-2020 and 2020-2021, the number of two-wheeler EVs increased by 422%, three-wheelers by 75%, and four-wheelers by 230%. The number of electric buses has also surged by more than 1,200%. The push for EVs is also expected to play a significant role in employee development in the local EV manufacturing industry.

Furthermore, EVs are expected to reinforce the grid and assist in increasing renewable energy penetration while maintaining secure and stable grid operation through a variety of grid support services.

What is National Electric Mobility Mission Plan

The National Electric Mobility Mission Plan (NEMMP), which was launched in 2013, is a governmental mission that provides a roadmap for the faster adoption of electric vehicles in the country as well as their manufacturing in the country to achieve national fuel security. The initiative is expected to save 9500 million liters of crude oil or INR 62,000 crores.

The NEMMP seeks to invest approximately INR 14000 crores in R&D activities and fledgling technologies, accelerate the adoption of electric cars, and establish critical infrastructure through public-private partnerships.

Electric Vehicles Promotion via FAME and FAME II

The FAME India (Faster Adoption and Manufacturing of (Hybrid and Electric Automobiles) Scheme is a government incentive program in India that promotes the use of electric and hybrid vehicles.

In simpler terms, the incentive is provided in the form of subsidies to electric car manufacturers and infrastructure providers to boost electric vehicle production and the development of electric transportation infrastructure.

FAME focuses on four important areas: technology development, demand creation, pilot projects, and charging infrastructure—all of which span electric and hybrid technologies such as mild hybrid, strong hybrid, plug-in hybrid, and battery electric vehicles.

S.NO Total Approximate Incentives Approximate Size of Battery
1 Two Wheeler: Rs 15000/- per kWh upto 40% of the cost of vehicles Two Wheeler: 2 kWh
2 Three Wheeler: Rs 10000/- per kWh Three Wheeler: 5 kWh
3 Four Wheeler : Rs 10000/- per kWh Four Wheeler: 15 kWh
4 E Buses: Rs 20000/- per kWh E Buses: 250 kWh
5 E Trucks: Rs 20000/- per kWh


Phased Manufacturing Programme (PMP)

A phased manufacturing roadmap has been developed to boost electric mobility and promote the development of electric vehicles in India. Taking into account the current state of the manufacturing ecosystem in the country, in which indigenous manufacturing of electric vehicles, their assemblies/sub-assemblies, and parts/sub-parts/inputs of the sub-assemblies will be promoted over time through a graded duty structure. The goal is to greatly increase the country’s value addition and capacity building.

It’s a good thing that many electric vehicle manufacturers are coming up with their electric two-wheelers in India. Vegh Automobile is a manufacturer of electric two-wheeler in India.

National Mission on Transformative Mobility and Storage

The mission’s goal is to create disruptive mobility plans and Phased Manufacturing Programs for electric vehicles, electric vehicle components, and batteries. It covers transformational mobility drive initiatives as well as phased manufacturing programs for electric vehicles, electric vehicle components, and batteries. Developing a Phased Manufacturing Program (PMP) to localise production across the whole value chain of electric vehicles. The Mission will finalize localization details with a specific Make in India plan for electric vehicle components and batteries. The Mission will work with key stakeholders in Ministries, Departments, and States to combine diverse programs aimed at transforming mobility in India.

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