As the first chapter of FAME policy is set to expire in March and the government is yet to launch a dedicated electric vehicle policy, the Indian electric vehicle sector may see some uncertain times ahead.
However, in order to make electric vehicles more appealing, the central government has proposed incentives worth INR 88,500 Cr ($12.4 Bn) to help the develop infrastructure for electric vehicles and also help power plants install equipment to curb the emission of harmful gases.
At the ETAuto EV Conclave 2019 which was held on February 20 in Delhi, industry experts have said that India needs to develop its charging infrastructure to integrate and boost the domestic emobility ecosystem.
With that, here is the latest in EV news from India and around the world.
EV News from India
States Reach Out To Tata For Electric Buses
Mumbai-based automaker Tata Motors is looking to bet on electric buses after the company received orders for supplying 225 units across different state transport unions. Citing Rohit Srivastava, product line head of Tata Motors, a media report said that the company is in the process of supplying about 80 electric buses to West Bengal Transport Corporation. Currently, the company manufactures the buses from Dharwad facility in Karnataka with an initial capacity of producing 125 units per month.
Varanasi Company Develops First E-Locomotive
Varanasi-based diesel-electric locomotive manufacturer named Diesel Locomotive Works (DLW) has built world’s first electric locomotive converted from diesel locomotive. The locomotive was flagged off by India’s Prime Minister Narendra Modi on February 20. The locomotive which was developed as a part of Indian Railways’ efforts to achieve 100% electrification of broad gauge routes by year 2021-22. This prototype will deliver 92% more power than the power generated by two diesel locomotives.
Govt May Approve Second Phase Of EV Policy This Month
In a bid to boost emobility in India, the government will reportedly consider approval of the second phase of Faster Adoption & Manufacturing go Hybrid and Electric Vehicles (FAME) scheme this month with an outlay of INR 5,500 Cr for a period of five years. According to reports, the second chapter of FAME will offer various incentives, such as exemption from paying road tax, registration fee and parking charges for various categories of electric and strong hybrid vehicles. However, it has been also reported that the scheme may discourage the two wheelers electric vehicle industry. Lower incentives may be offered as a part of the scheme as the vehicles use low power and fast charging batteries.
Govt To Provide INR 50K Rebate On EV Purchase
The government is reportedly considering a rebate of INR 50K ($702) on purchase of electric vehicles. Citing government official, reports said that the major reason behind this step is to provide enough incentives which will match the prices of electric vehicles to the current conventional internal combustion engines. The central government is also reportedly planning to provide easier loans to those looking to buy electric vehicles. It was also reported that the central government is planning to focus on vehicles running on compressed natural gas (CNG) and liquefied natural gas (LNG) as an alternative until the manufacturers till carmakers can manufacture affordable electric vehicles.
EV News From Around The World
Chinese EV Maker Kandi Receives Approval To Launch In US
Chinese electric car maker Kandi is has received approval from the US government agency National Highway Traffic Safety Administration to import two of its electric cars to the country. According to reports, the company is looking to bring in its Model EX3 and Model K22 in America. The automobile maker had mentioned about its plans last year when it introduced the US version of these vehicles in Texas in August 2018.
Volvo Issues Bonds Worth $214 Mn To Fund EV Push
Sweden-based automobile maker Volvo cars has reportedly issued bonds for sale worth 2 Bn Swedish crowns ($214.65 Mn). This move comes in just five months after the company dissolved its plans to list itself citing reasons such as trade tensions and decline in stocks of the automotive sector. According to reports, the company needs funding as it looks to build electric and driverless vehicles. The company is also reportedly facing troubles in finances due to the prolonged U.S.-China trade war and slowdown in major auto markets such as China and Europe.