What if your daily commute could save the planet—and your wallet? India’s EV revolution is making it happen!
EVs have been aggressively promoted by the Indian government with several incentives and policies to minimise pollution and fossil fuel use. That drive has created tremendous growth in the EV market, which reached 1,752,406 units in FY2024, which was a 40.31% year-on-year increase.
Key Incentives and Policies
FAME-II scheme: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme in its second round offers a great discount to EV consumers. It offers subsidy of up to Rs 15,000 per kWh for two-wheelers, Rs 10,000 per kWh for three-wheelers and Rs 20,000 per kWh for electric buses. It has a total budget of Rs 10,000 crore for FAME-II.
PM E-Drive scheme: Introduced on 01-10-2024 PM E-Drive scheme is offering upfront incentives to buy electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and other upcoming EVs. It will finance 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers and 14,028 e-buses. Additionally, Rs 500 crore is given for e-ambulances, Rs 4,391 crore for purchase incentives.
Income Tax Deductions: For EV purchasers income tax deductions are up to Rs 1.5 Lakh under Section 80EEB of Income Tax Act. This is an incentive that aims to make EVs cheaper and more mainstream.
Scrapping incentives: Government provides incentives to scrap old petrol and diesel vehicles to shift to EVs. This reduces pollution and encourages materials recycling as well.
State-Level Policies: States of India have adopted their EV policies in addition to the central government’s policy. In August 2020, the Delhi government, for instance, released Delhi Electric Vehicle Policy, with a view to bring about the transition to battery-electric vehicles.
e-AMRIT Portal: e-AMRIT portal launched at the COP26 Summit in Glasgow and includes full details on EV incentives and schemes available to the public. The portal will help buyers avail the various incentives that are being provided by the government.
Impact on the Industry
Incentives by the government had a huge impact on the EV sector, as they encouraged investment from foreign EV makers and have made India the world’s leading EV manufacturing region. The fast growth of EV market has also encouraged the electrification efforts by Indian auto makers.
Environmental Benefits
Reducing reliance on imported fossil fuels and CO2 emissions are also prime aim of the government’s EV initiative. Road transportation explains 12 % of India’s energy-related CO2 emissions, so EV adoption is an essential element to control urban air pollution.
Future Outlook
As long as the government remains a supportive player and people are becoming more aware of the green benefits of EVs, India’s EV sector is in good hands. The ambitious targets and full-fledged incentives from the government will continue to boost this industry, and EVs will be viable and long-term choice for the market.
The future is electric, and it’s already here. So, what are you waiting for? Plug in and power up!
