How government policies are helping in the Electric Vehicle Revolution.

Sales of electric vehicles are on the verge of rising in India, as the number of vehicles sold is set to reach over half a lakh units by the end of this year. There has been a slow but steady increase in the terms of EV adoption that rose from just 0.4 % to 1.8 % in the current year.

Government has been the primary catalyst in the rising numbers as the union budget of 2022 also emphasized on the importance of e-mobility and EV adoption. The government has its foot set on the pedals and the growth has been visible but if we compare it to the other developing and developed nations, it lies on the lower side.

To solve this issue, the Central Government released two policies: the FAME (Faster Adoption and Manufacturing of Electric Vehicles) policy in 2015 and the FAME II policy in 2019.

Along with the central government even state governments are contributing in terms of EV adoption by promoting E-mobility in their sector. The UP government recently published new policies stating that the registration fee on the EV registration as well as the road taxes for both commercial and personal buyers will be waived off. Furthermore, the UP government is also planning to invest over Rs. 30,000 crores after 2 years in the state to promote e-mobility.

The West Bengal government aims to be fully e-mobilized by 2030 and it has already invited bids for installing over 200 EV charging stations across the state. 

National capital, Delhi has been the best performing in terms of setting up EV hubs. Recently they announced the setup of 1000 charging stations being set up across the capital and are on the way to setup 18,000 more in the coming 3 years. Similarly, there are over 18 states which have issued state policies in their respective regions to boost EV adoption.

Moreover, the upfront cost of electric vehicles is being reduced by numerous Indian governments, notably Maharashtra, Delhi, and Gujarat, in order for them to compete with their ICE (internal combustion engine) counterparts.

The central government aims to have EV deals representing 30% of private vehicles, 70% for business vehicles and 80% for two-and three-wheelers by 2030 as there is an immediate need to decarbonize the vehicle area. On the off chance that electric vehicles grow to 40% in the vehicle sections and bike, and near 100 percent for transports by 2030, India would have the option to cut unrefined petroleum utilization by 156 million tons which is worth Rs 3.5 lakh crore.

The roadways minister called attention to the fact that NITI Aayog has persuaded 25 States to think of EV arrangements, out of which 15 have proactively reported State EV strategies in the EV mission. The research named 'Opening India's electric portability potential' guesses that by 2030, over 30% of vehicles in India will be electric. The research also features that by 2030 the EV business will cross 10 million vehicles with a reception pace of 30% across classes. The research additionally suggests that traveler vehicles will just add up to 5 percent of EV sales.

While the government is doing everything it can, it’s still halting some of the major giants in this industry to start their operations in India. Tesla, the largest EV manufacturer in the world, is on hold when it comes to expanding its reach to the Indian market due to huge import duties on electric vehicles and the government has no plan to reduce the import duties.

The EV industry allured $6 billion in investment in 2021, this could grow to $20 billion by 2030 as per research. In a sign it looks like the EV market is drawing the attention of private equity/venture capital investors in India, such funding is estimated to grow from $181 million to $1,718 million during the same period – an annual growth rate of 849%. So far this (PE/VC investment) has reached about $666 million in 2022.

Government aims to achieve over 80% EV mobility across the nation by 2030 which is a highly optimistic number as there is still a mammoth task to be done in terms of installation of charging stations. There is a need for significant investment in the charging infrastructure and supporting the regional supply chain management in EV friendly areas.