The transport sector in India is currently the third-largest emitter of CO2. Thus, in order to curb the rising carbon emissions, the Indian government is constantly encouraging faster adoption of Electric Vehicles (EV). The Electric Vehicles (EV) market is still at a nascent stage, but it is very much on the agenda as a means to move towards sustainable mobility. To that effect the Indian government too is providing the much needed impetus to transition to green mobility. The sudden spike in the sales of electric vehicle in the first two months of 2022 (as per the Federation of Automobile Dealers Associations) surpassing the one lakh mark, shows that the market is rapidly growing and is expected to grow further.
The increasing climate-conscious sentiment among consumers, incentives provided by the government, the launch of state policies, rising fuel prices, and tightening emission laws are some of the important factors making the EV sector an attractive market.
Initiatives taken by Government so far
The need for initiating a National Electric Mobility Mission Plan was understood back in 2013, aiming to achieve national fuel security by promoting hybrid and electric vehicles in India. This not only focused on boosting faster adoption of EVs, but is also a step towards meeting the country’s pledge to reduce carbon emissions and reach the net-zero carbon emissions target by 2070. The good news is that the government has taken multiple steps to accelerate and provide incentives to stakeholders and partners in the ecosystem for faster adoption of EV. A few to mention –
- The Government launched National Electric Mission Mobility Plan 2020 to provide subsidies for Faster Adoption and Manufacturing EV (FAME) schemes– subsidies for electric two and three-wheelers, hybrid cars, and E-cars.
- Under phase two of FAME- Rs 8597 crore has been approved for incentives and Rs. 1000 crore has been allocated for the development of robust charging infrastructure around the country.
- Fiscal incentives to promote the EV industry – Road tax exemption under EV policy has been given to the 14 states like Andhra Pradesh, Bihar, Delhi, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Orissa, and Uttarakhand, who have implemented EV policies and 4 states are at the drafting stage as of now.
- Battery swapping policy – the Government will formulate a battery swapping policy considering space constraints in urban areas
While the intention of government backed with incentives and policy support is future looking and a step in the right direction, addressing certain aspects like the lack of infrastructure is one such factor that needs attention immediately.
Watch out for the next article in this series as we talk about green mobility & Real Estate Infrastructure.
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