Over 13 Lakh EVs Currently Running On Indian Roads, UP Tops The List: Govt

The Ministry of Heavy Industries on Tuesday (July 19) informed the Parliament that the total number of electric vehicles (EVs) on Indian roads stood at 13.34 Lakh units, with Uttar Pradesh leading the chart.

As of July 14, Uttar Pradesh had a total of 3.37 Lakh EVs, the highest among Indian states, followed by Delhi with 1.56 Lakh EVs. Karnataka and Maharashtra were the two other states with over 1 lakh EVs.

As per the data presented by the government in the Lok Sabha, EVs constituted only 0.48% of the total number of vehicles on Indian roads.

The Indian government, along with state governments, is trying to incentivise EV adoption and manufacturing. In May, Union Minister Nitin Gadkari said that India will have 3 Cr EVs in the next two years.

It is also pertinent to note that building EV infrastructure plays a key role in enabling overall EV adoption. 

As per the government, 479 charging stations had been installed in the country, as of July 1, under the phase-I of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) India Scheme. In December last year, the number stood at 452. 

On the other hand, 520 charging stations have been sanctioned under the scheme.

Additionally, out of the 2,877 EV charging stations sanctioned by the Ministry of Heavy Industries in 68 cities across 25 states/union territories last year, under the phase-II of FAME, only 50 charging stations have been installed so far.

The FAME India scheme, introduced in 2015, was an initiative to boost the overall EV adoption in the country. Initially launched for a period of two years commencing from April 1, 2015, phase-I of FAME was extended multiple times. The last extension was allowed till March 31, 2019. 

As per government data, a total of INR 529 Cr was allocated to the scheme in a phased manner and the entire amount was utilised. However, the total number of charging stations built under the scheme is yet to reach the sanctioned level.

The phase-II of FAME, which commenced on April 1, 2019, was set to end on March 31, 2022, and the government had allocated INR 1,000 Cr for the development of charging infrastructure. In June last year, the scheme was extended by two years till March 31, 2024.

Recently, talking to Inc42, a few industry leaders had noted that the government initiatives are commendable, but the execution could be faster.

Meanwhile, the government has come up with several other schemes for increasing the pace of EV adoption in the country. A Production Linked Incentives (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries, with a  total manufacturing capacity of  50 Giga Watt Hour (GWh), was introduced last year in May with an outlay of INR 18,100 Cr.

Ola Electric, along with Rajesh Exports, Hyundai Global Motors Company, among others, were the beneficiaries of the scheme. 

The goods and services tax (GST) on EVs has also been reduced to 5% from 12%, while GST on chargers/charging stations has been reduced to 5% from 18%. As per reports, the government is also planning to cut GST on lithium-ion (Li-ion) batteries from the current rate of 18%.

However, Minister Of State For Heavy Industries Krishan Pal Gurjar reiterated in the Lok Sabha on July 19 that the government does not propose to set up EV manufacturing units under the National e-Mobility Programme. In April, the ministry had said the same thing.

As per a research report, the Indian EV market is expected to expand at a compound annual growth rate (CAGR) of 94.4% from 2021 to 2030. In 2021, it was valued at $220.1 Mn.