Over the past decade, the electric vehicle industry has grown rapidly with EVs becoming increasingly popular and advanced. With a market size of 8,151 thousand units in 2022, estimates assume that the market will reach an astonishing 39,208 units by 2030. With such a rapid rate of expansion, it is no surprise that many countries are undertaking political, social, and infrastructural changes to increase their EV capabilities.
Among these, India has been making leaps and bounds in an attempt to introduce electric vehicles and create an environment for convenient usage. Having the third-largest automotive industry in the world, the country has seen more than 200% growth in the EV segment in the past year and aims to keep growing. So, in this article, we’ll look at the current situation and growth path for India’s EV sector.
The Current EV Environment in India
Currently, the Electric Vehicle market in India can be said to be in the developmental stage. This is because while many local and international companies such as Kia, Mercedes-Benz, Tata, etc. have launched EVs, they are still quite new to the automobile sector. According to figures from August 2022, there are a total of 13,92,265 EVs on Indian roads.
That being said, with a massive demand for vehicles in the country and recent government incentives promoting EV introduction, the growth trajectory for India is high. Put in numbers, the government has approved a substantial 356 EV manufacturers and 160 EV-approved models for use in the country. Additionally, many local governments have made massive strides by introducing new electric buses throughout the country. Back in January 2021 alone, there were more than 5,000 e-buses with the number expected to be many times higher as of now.
That being said, let’s go over some of the measures being taken for India to succeed in becoming an EV hub:
Measures For Growth
Development of Public Charging Stations
India currently has an active network of 900+ public charging stations spread across the country. These have been developed at a rapid pace over the past few years and many large companies are working with the government to increase this number multifold. Specifically, some of the top EV charging station providers in India are:
- Delta Electronics India
- Quench Chargers
- ABB India
- TATA Power
Benefits of Purchasing Electric Vehicles
Many local governments have set up subsidiaries for consumers purchasing electric vehicles. These promote consumers to produce and sell EVs while also prompting the public to purchase them.
One prominent Indian state which has recently launched a set of incentives is Uttar Pradesh. The highly populous region announced that buyers who purchase EVs will get the following benefits:
- 100% exemption from registration fees and road tax for up to three years.
- 15% discount on ex-factory cost for EV two-wheelers.
Apart from this, subsidy support for over 4000 buses and electric CVs has also been announced by the state.
The FAME scheme is a government initiative in India that aims to promote the adoption and sale of electric vehicles in India over a period of 5 years. The scheme was launched in 2019 with a total budget of INR 10,000 crores. Throughout this scheme, the government has introduced a range of price cuts for raw materials such as batteries, subsidiaries, and other benefits. Moreover, the central government is currently working to allot further funds for charging stations and electric bus purchases.
With so many political and social factors pushing the growth of the EV market in India, things seem to be on the right path. If you want to make your way in this budding industry before it takes off, we at Seamless can help. Our experienced team can help you work with the local government to enter the EV market with the utmost cooperation and benefits. Want to find out more? Get in touch with the team today!