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How Government Policies are Supporting EV Adoption?

Several laws and policies have been enacted by our government to encourage the production and use of electric vehicles. As a result, the Indian market has seen positive results and increased EV penetration. Several criteria for the country’s rapid adoption of electric vehicles necessitate adequate infrastructure, legislation, and policies.

These characteristics should be emphasized even more by developing and implementing a comprehensive framework for EVs in the country. Various laws and regulations within this framework should encourage the country’s faster adoption of electric vehicles by providing an affordable, dependable, safe, and accessible infrastructure and environment.

This will lead to increased value addition in the country, as well as increased manufacturing and job creation. The fundamental revolution in sustainable and clean mobility is being driven primarily by regulation, customer behavior, and technology.

India’s step towards supporting EV startup companies

The abrupt shift to technology and electrification in the automobile industry is very visible, but growth in India has been much slower than elsewhere. To find the solution, the FAME (Faster Adoption and Manufacturing of Electric Vehicles) policy was issued by the federal government in 2015,which was further followed by the FAME II policy in 2019.

To capitalize on this golden opportunity, several state governments are rushing to announce their respective state EV policies, which are intended to encourage EV adoption and manufacturing.In order to compete with its internal combustion engine (ICE) equivalents, many Indian governments, particularly those of Maharashtra, Delhi, and Gujarat, are providing major incentives to EV buyers. These state government subsidies are in addition to the Centre’s FAME II plan subsidies. Many state governments are imposing additional road fees on ICE vehicles, as well as a green tax on the re-registration of old vehicles, as well as different penalties and taxes on gasoline and diesel, as well as an ICE congestion fee.

Several southern states, on the other hand, are focusing on the development of electric vehicles. Many governments, including Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka, are attempting to entice EV manufacturing companies to invest in the coming years by offering tax breaks, capital investment incentives, and lower power tariffs.

As India strives to reduce its reliance on fossil fuels, the battle for EV policies among states is a positive sign for the sector. This EV adoption will contribute to a 35% reduction in greenhouse gas emissions from 2005 levels over the next nine years in order to meet global climate targets.

India’s move towards EV

EV sales increased last year, despite the economic downturn caused by the Covid-19 epidemic. In the current fiscal year, India sold 1.04 lakh electric vehicles, compared to 5.17 lakh total registrations in the previous 3.5 years. Between 2001 and 2017, Indian vehicle ownership more than tripled. In India today, two-wheelers account for more than 80% of all vehicles. This group will drive the transformation.

With a total budgetary outlay of Rs 10,000 crore, the Central Government has extended its Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme until 2024. The government is helping this industry by encouraging manufacturing, research and development, subsidies, and scrapping. They are also investing in battery manufacturing and the development of charging infrastructure.

To accelerate the use and manufacturing of (hybrid and) electric vehicles in India, the government established the National Electric Mobility Mission Plan 2020 (FAME India). Because automobile pollution is wreaking havoc on the environment, the transition to clean transportation is critical. The NEMMP aims to invest approximately INR 14000 crores in R&D initiatives and emerging technologies, to accelerate electric vehicle adoption, and to build critical infrastructure through public-private partnerships. The Ministry of Heavy Industry issued NEMMP. This was achieved following a thorough examination of potential interventions, which included focus group discussions, expert opinions, existing literature, international studies, and primary research conducted by the consulting firm Booz & Company.

Availing charging infrastructure

Electric vehicles have been gaining popularity for many years due to lower maintenance costs, lower fuel prices, and environmental friendliness. People are already opting for electric vehicles, but more infrastructure is needed. EV policies at the national and state levels must direct and promote research, charging infrastructure, and appropriate skill development techniques. We require an EV policy that contributes to the creation of an environment conducive to the transition from internal combustion engines to EVs. Effective policies that prioritise EV research and development are required. Several states have adopted electric vehicle policies to supplement national electric mobility plans and to promote sustainable transportation in the future. About half of Indian states have their own EV policies. Financial incentives for EV purchases, exemption from road tax, car registration fees, and lower interest rates on EV loans are examples of EV policies. It also includes efforts to encourage the purchase of more electric vehicles by public transportation and last-mile delivery companies. In addition, infrastructure for EVs is being built, including facilities for battery manufacturing, charging infrastructure, and scrapping.

Long-term EV sustainability can be improved by providing fiscal and non-fiscal incentives. To allow gas stations to freely install charging stations, regulations must be drafted. Another significant challenge for EV manufacturers is the safe disposal of batteries. Although the government is developing battery recycling guidelines and offering financial incentives to companies that build recycling facilities, the process needs to be accelerated.

Team Zypp Electric
Team Zypp Electric

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