In a groundbreaking year for India’s automotive landscape, government initiatives have propelled a surge in vehicle registrations, reaching an impressive 2.27 crore. Notably, electric vehicles (EVs) have emerged as shining stars, reflecting the success of pro-EV measures and signaling a transformative shift towards sustainable mobility.
In a significant move to accelerate the adoption of Electric Vehicles (EVs) and boost domestic manufacturing, the Ministry of Heavy Industries in India has introduced three groundbreaking schemes. The schemes include the FAME India Phase II, designed to promote hybrid/electric technology in transportation with a budgetary outlay of Rs. 10,000 crore over five years. FAME II aims to subsidize e-Buses, e-3 Wheelers, e-4 Wheeler Passenger Cars, and e-2 Wheelers, catering to both public transportation and privately owned vehicles.
Another notable initiative is the Production Linked Incentive (PLI) scheme for the ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ with a budgetary allocation of Rs. 18,100 crores. This scheme envisions establishing a cumulative ACC battery manufacturing capacity of 50 GWh, propelling India towards self-reliance in battery production.
Additionally, the PLI Scheme for the Automobile and Auto Component Industry, with a budgetary outlay of Rs. 25,938 crore, provides financial incentives to boost the manufacturing of Advance Automotive Technologies (AAT) products, including electric vehicles and their components.
The government, in collaboration with NITI Aayog, has formulated a comprehensive subsidy or low-interest loan scheme for electric vehicles to stimulate sales. Notably, Phase II of the FAME-India Scheme offers incentives linked to battery capacities, ushering in a new era of affordability for EV buyers.
While the Ministry does not track manufacturing data for electric vehicles, recent statistics from the Ministry of Road Transport and Highways reveal a growing trend in EV registrations. In the calendar year 2023, until December 12, a remarkable 14,33,545 electric vehicles were registered, accounting for 6.31% of the total vehicles registered.
The schemes underscore the government’s commitment to creating a sustainable and eco-friendly mobility landscape, aligning with global efforts to reduce carbon emissions and foster innovation in the automotive sector.
| Detail of vehicle registered during calendars years -2020 to 2023 (till 12-12-2023) | ||||
| Particulars | 2020 | 2021 | 2022 | 2023 (till 12-12-2023) |
| No. of Petrol Vehicles | 1,63,54,918 | 1,63,15,856 | 1,78,17,281 | 1,80,56,749 |
| No. of Diesel Vehicles | 20,33,747 | 20,18,742 | 23,47,488 | 24,02,341 |
| No. of Electric Vehicles | 1,24,681 | 3,31,634 | 10,25,118 | 14,33,545 |
| TOTAL of Above Three Rows | 1,85,13,346 | 1,86,66,232 | 2,11,89,887 | 2,18,92,635 |
| Total Vehicle Registered Calendar Year Wise | 1,86,41,661 | 1,89,20,541 | 2,15,70,361 | 2,27,17,562 |
| Ratio of EVs to total vehicles | 0.0067 | 0.0175 | 0.0475 | 0.0631 |
