Government Addresses Gap Between Electric and ICE Vehicles with New Initiatives
In addition to subsidy schemes like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme, Electric Mobility Promotion Scheme 2024 (EMPS),Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-AAT),Production Linked Incentive Scheme for manufacturing of Advanced Chemistry Cell (PLI-ACC),the Central Government on 15.03.2024 notifiedScheme to Promote Manufacturing of Electric Passenger Cars in India to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. The approved applicant companies will be able to import upto 8000 CBUs (annually) of e-4W manufactured by them with minimum CIF value USD 35,000 at reduced customs duty of 15% provided they set up e-4W manufacturing facilities with a minimum investment of ₹4,150 Crore.
Further, following initiatives have also been taken up by the Government of India to increase the use of electric vehicles in the country: –
- GST on electric vehicles and chargers/ charging stations for electric vehicles has been reduced to 5%.
- Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.