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Summary of subsidy scheme for EVs in India

Qasim Saif I finserv@vinodkothari.com

The penetration of EVs in Indian vehicle market have gone up from 0.01% to 1.66% from FY 15 to September, 2021[1]. This shows a clear increase in penetration of the EVs in the Indian vehicle market. Though the growth of EVs faces a several resistances in form of high upfront costs, the paucity of public charging infrastructure, and travel range.  The policy support from the government can be of a major motivator for promotion of EVs in India.

Government policies have a significant role to play in India’s nascent EV industry, as they can lay down the ground work for future procurement of EVs, financial incentives to end consumers and OEMs, and funding for manufacturing and charging infrastructure development. The EV ecosystem in India has been shaped by policies at both the central and state level. The policy support can also provide a crucial support to the EV segment, as mentioned above, upfront cost to customer is a major factor limiting the growth of EV segment. Policy support can help bring down a portion of this cost, hence helping the industry. Several states have announced their EV policy providing for incentives to the EV industry as well the customer. Read more