Government is developing incentives for EVs: PM Modi

According to Prime Minister Narendra Modi, the government has been working to offer various incentives for the electric vehicle (EV) industry in order to achieve India's sustainability goal of reducing carbon emissions, according to Moneycontrol, citing their exclusive interview that covered the G20, as well as global issues, the economy, and more.

The government has been putting effort into developing incentives for the electric vehicle market. According to Modi, the market has responded with more innovation, and consumers are reacting by being more willing to try the alternative. This occurs at a time when it is said that the Indian government is drafting a new EV policy that will lower import tariffs for businesses that commit to doing some local manufacturing.

As opposed to the existing policy, which levies a 100 per cent tax on completely completed vehicles that cost more than $40,000 and a 70 per cent tax on everything else, the proposed policy would permit automakers to import fully built electric vehicles into India at a reduced tax rate as low as 15 per cent.

The Ministry of Heavy Industries made the decision to reduce the FAME II scheme's subsidy for electric two-wheelers from Rs 15,000 per kWh to Rs 10,000 per kWh in June 2023. In addition to cutting the per-kWh incentive by Rs 5,000, the ministry also decreased the maximum subsidy ceiling from 40% of the vehicle's ex-factory price to 15%.

The EV business has been witnessing fantastic acceptance despite the subsidy reduction.

According to the government's Vahan website, retail sales of EVs in July 2023 included goods- and passenger-carrying commercial vehicles as well as two-, three-, and four-wheeler (car and SUV) divisions.

In reality, sales of electric two-wheelers (E2Ws), which had plummeted in June as a result of the subsidy reduction, continued to rise in August. Compared to 45,000 units sold in June, over 59,000 E2Ws were sold across the nation in August. According to data taken from the Vahan website, the 59,313 units sold in August outsold the 54,498 automobiles sold in the previous month.