India is the world’s third-largest emitter of greenhouse gases, which primarily come from inefficient combustion of fossil fuels in electricity generation and stationary energy use. The Union government has set a goal to reduce its emissions intensity by 20-25% below 2005 levels by 2020.

Electric vehicles or EVs have grown in popularity worldwide over recent years, as they reduce air pollution and also save money on fuel and maintenance. The electric mobility landscape in India is rapidly changing with EV incentives and regulations coming in from different government bodies.

Performance vs Cost

In terms of performance, there is no longer the gulf there once existed between EVs and their internal combustion engine (ICE) counterparts. EVs, in fact, fare better than ICE vehicles on a range of transport policy goals, including enhanced energy security, reduced reliance on crude oil, better air quality and lower greenhouse gas emissions.

Performance vs cost - EV Charging

EVs are, therefore, emerging as the preferred d    clean technology for the future of mobility.

The economics of EVs has also improved significantly, while advancements, especially in battery and charging technologies, are expected to reduce costs further.

Central Government Policy roll out snapshot

  • 2010: The Indian government announced a strategy to reward OEMs with a budget of INR 950 billion.
  • 2012: The incentive program was scrapped, resulting in a 70% reduction in electric vehicle sales.
  • 2013: The Indian government has established the National Electric Mobility Mission Plan (NEMMP) 2020
  • 2015: FAME-I scheme launched on 01-Apr-15 till 31-Mar-19 by the Dept. of Heavy Industries. Allocated total financial outlay of INR 5.29 billion
  • 2019: FAME-II commenced from 01-Apr-19. The union cabinet approved an outlay of INR 100 billion. Taxes reduced to 5% on EVs and Electric Chargers.

Incentives: Consumer Demand

  1. State level Subsidies & Exemptions

While 17 States have rolled out their final EV policies, 3 states have come out with their draft EV policies.

Looking at state-wise incentives

Per kWh of battery capacity Max subsidy Road tax exemption
Electric Two wheelers 0 – Rs. 10,000 Rs. 30,000 100%
Electric Four wheelers 0 – Rs. 10,000 Rs. 2,50,000 100%

  1. Income Tax Benefits for individuals

If you are planning to buy an electric car, you may be wondering if the benefits will outweigh the cost. In order to encourage people from buying EVs Govt. of India has announced Income Tax benefits:

  • Under section 80EEB, a total tax exemption of up Rs 1,50,000 can be availed when paying off the EV loan. This tax exemption is available for both 4-wheeler and 2-wheeler EV purchases. (Only for people buying on loan from financing institutions/NBFCs)
  1. Customs duty exemption on import of specific components
  2. GST on EVs reduced from 12% to 5%
  3. Non Financial Incentive

Among non-financial incentives, permit waivers for EVs and a complementary ban on permit renewals for polluting vehicles are expected to be highly impactful in promoting the steady conversion of Internal Combustion Engine (ICE) commercial vehicles to electric.

Incentives – Charging Infrastructure

The lack of charging infrastructure is one of the most significant barriers to EV adoption in India. In order to encourage consumers to adopt electric vehicles, the government has announced various incentives for all kinds of electric vehicles, including electric cars, two-wheelers and buses.

A robust network of EV charging infrastructure reassures consumers of charging availability thus reducing range anxiety associated with electric vehicles.

  1. The Ministry of Power has rolled out a series of guidelines for charging Infrastructure for Electric Vehicles, both for businesses and individuals

Incentives - Charging infrastructure

The ministry has further ensured

  • Charging EVs to be considered a service and not a sale of electricity
  • No license is required to operate EV charging stations
  • Notification permitting private charging at residences & offices; tariff not to be more than the average cost of supply plus 15%.
  1. Goods & Services Tax Council reduced GST on EV charging stations reduced from 18% to 5%
  2. State governments across Delhi, Karnataka. Maharashtra, Telangana and a few others have mandated institutional and commercial complexes including IT parks besides new residential buildings to have 20-25% of parking spaces to be EV ready.

EV Charging Infrastructure in India

EV Charging is a critical component for the adoption of Electric Vehicles. To ensure a smooth transition from ICE to EV, EV charging infrastructure should be set up at strategic locations, for example: near workplace, near residential areas and at public places like malls and restaurants.

The Department of Heavy Industries has also sanctioned 2636 charging stations in 62 cities across 24 States/UTs under FAME India scheme phase II. State-wise allocation of these charging stations is as follows:

EV Landscape Central & State Government Incentives and Regulations

To make this happen, India has seen a slew start-ups who have entered this space and are building solutions to solve this problem, besides legacy companies in the automotive and power generation space.

About SemaConnect

SemaConnect is the leading provider of Electric Vehicle Supply Equipment to North American and Indian Commercial & Residential Market. Established in 2008, SemaConnect has done 17,000 + installations world-over while having its R&D, IT Dev & Manufacturing in India.

SemaConnect is a Blink Charging Company BLNK (NASDAQ). With more than 17,000 smart charging stations already sold in the US and Canada, SemaConnect is one of the largest integrated electric vehicles charging providers supplying both charging hardware and cloud-based software.

Our worldwide clients include Intel, Amazon, Adidas, CISCO, American Express, GVR, Volvo, Wells Fargo, Ritz Carlton, and Marriot.

Having started the India Sales & Marketing office in 2021, we have already made headways in the market with more than 100 installations in India.

SemaConnect is also the first vendor in India that is certified compliant by the Open Charge Alliance on OCPP & OCPI. SemaConnect products are also certified by Automotive Research Association of India for compliance on IS17017 on Electromagnetic Compatibility, Climatic Environment tests, Interoperability and mechanical tests.

To know about us log onto www.semaconnect.in or call +91 8068971240