Electric vehicle sales in India

         
    
  
   
 

  

 

 

200 oy reaerreeeeerrarr Tae” | 100
MNRE subsidy FAME subsidy [Fame t_|
of 20% of ex- scheme, Mar FAME. Il 90
150 factory price 2015 - Mar
(Nov 2010 - NEMP Policy was announced in | 2018 80
Mar 2011) Aug 2012, but subsidy was not
100 70
60
50
I ‘
° || a oe | oe | | 0
FY11 Fy12 FY13 FY14 Fy15 FY16 FY17 Fy18_|FY19E FY20E

 

 

 

mmm EV sales(‘000)-LHS mmm 2 W EV sales('000)-LHS 1——=Petrol prices (Delhi, INR/It)-RHS
Source: Society of Manufacturers of Electric Vehicles (SMEV), Industry, Government of India
Nascent EV industry has transitioned through several phases

Upswing (fiscals 2011 to 2012): EV sales picked up in fiscal 2012 on the Gol’s subsidy scheme launched in the
second half of fiscal 2011. This also coincided with rising petrol prices and the launch of new EV models.
Downswing (fiscals 2013 to 2015): Sales lost momentum in fiscal 2013 as subsidy got exhausted and cases of
consumer dissatisfaction with products surfaced. Fiscals 2014 and 2015 saw sales falling further as subsidies were
not available and the industry (number of players, distributors) shrank. Recovery (fiscal 2016 - ongoing): Gol
notified FAME-I (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) benefits in March 2015.
This helped the industry recover and SMEV members also rose from 7 to 12 over fiscals 2015 to 2017. There
were new model launches as well. Fiscal 2018 saw better Li-ion-based products and there was also greater
awareness and publicity around EVs. EV volumes as reported by SMEV over the years are represented largely by
scooters. SMEV does not report volumes of e-rickshaws (Toto) whose population as per some estimates could be
as high as a million. Both scooters and e-rickshaws are powered largely by lead acid batteries and they have a
speed limit of 25 kmph, allowing them to skip vehicle registration.

Government policies

The government has formulated various schemes and policies to support the expansion of the electric vehicle (EV)
ecosystem in India. They are:

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME)
e Phased Manufacturing Programme (PMP)
e Charging Infrastructure for Electrical Vehicles - Guidelines and Standards

FAME

e Interest in EVs is seeing a unprecedented increase globally as countries take steps to cut fossil fuel usage and
carbon emission and curb pollution. India, too, has put in place policies and schemes to encourage adoption
of EVs. FAME is one such scheme.

¢ FAME Phase-I was introduced on April 1, 2015, and was initially meant to be in force for 2 years. This was
extended up to March 31, 2019. The total outlay for the scheme was enhanced from the initial Rs 798 crore
to Rs 895 crore.

e The Phase-II, with a significantly higher outlay of Rs 10,000 crore, was announced by the Department of
Heavy Industry (DHI) for 3 years effective April 1, 2019. Till September 10,2020 the, government has also
sanctioned about 5,600 buses amounting to Rs. 2,800 crore and 2,900 EV charging stations amounting to
about Rs.500 crores to be setup in major cities. As of 31* August 2020, a total of Rs. 610.7 crores have been
spent under FAME II scheme since April 1, 2019.

The outlay for the scheme is broken into three major areas:

¢ Demand incentives
« Establishment of network of charging stations

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