Government Data Shows Four-Wheeler Electric Vehicle Sales Surpass 2022 Target in Just Seven Months
Recent government data shared in the Lok Sabha shows that sales of four-wheeler electric vehicles (EVs) in India have grown significantly this year, surpassing last year’s numbers. Statistics show a significant shift towards environmentally friendly transport options, as consumer interest has grown driven by incentives.
In response to questions put to the Ministry of Heavy Industry, Minister of State Krishan Pal Gurjar told about the consumption of electric cars until August. According to official data, 40,000 four-wheeled electric cars have been sold in the country by August 1. This figure exceeds the sales of 33,205 four-wheeled electric cars in the whole of 2022.
UP TRAJECTORY
In 2022, the share of electric cars in the total sales of four-wheeled cars was only 1%. However, the number increased significantly in 2023 and was close to two percent.
This increase in sales of four-wheeled electric vehicles is based on a continuous increase in recent years. The figures show a remarkable development. From 1,047 four-wheeled electric cars sold in 2018, the number dropped to 962 units in 2019, rose to 3,207 units in 2020, and further increased to an impressive 12,259 units in 2021.
GOVT PUSH
MoS Gurjar shared important facts about the government’s initiatives and measures to overcome the structural challenges associated with the introduction of electric cars.
These measures include faster adoption and manufacturing of hybrid and electric vehicles in India (FAME India), Production Linked Incentive (PLI) scheme for automotive industry and advanced chemical cells, GST rebates on electric cars and charging stations, issuance of green. license plates for battery-powered vehicles and exempting electric cars from road tax to reduce initial costs.
According to MoS Gurjar, the FAME-India Scheme offers Phase II incentives to consumers of electric vehicles in the form of advance invoices for the purchase price of electric vehicles. He further stated that in 2021, the government approved the PLI program for the automotive industry, which is for electric cars, with a budgeted allocation of Rs 25,938 crore to promote local car manufacturing.
The minister also stated that in the same year, the government approved the PLI scheme for manufacturing ACC in the country at a financial cost of Rs 18,100 crore. The plan is to build a competitive ACC battery manufacturing facility for 50 GWh. In addition, the system also covers 5 GWh of ACC’s special technologies.
He also pointed out that the GST on electric cars has been reduced from 12% to 5%, while the GST on chargers or charging stations for electric cars has been reduced from 18% to 5%.
Furthermore, when talking about the initiatives of the Ministry of Road Transport (MORTH) to promote the introduction of electric cars, MoS Gurjar stated that the ministry has already announced that battery-powered cars will be issued with green number plates and no permits will be required. . In addition, MORTH issued a statement recommending that states remove the road tax for electric cars, which will lower the initial cost of the vehicles.
The minister then stated that with increasing market share of electric vehicles, the government has reduced the unit subsidy for electric vehicles from 40 percent to 15 percent of the ex-factory price of electric cars in the FAME India Scheme-II phase. . This was done after stakeholder engagement with e-2W OEMs in May 2023 and approval of Phase II of the FAME India program from the Project Implementation and Sanctions Committee (PISC).
