The world is grappling with the challenge of dealing with the harmful effects of climate change. In response to the broader consequences of these changes, the world is turning to sustainable transportation and environmentally-friendly energy sources, such as electric vehicles. India is actively participating in this effort by promoting EV adoption, making it one of the fastest-growing electric vehicle markets in the world as part of its contribution towards this collective goal.
EV adoption
Electric vehicle sales in India have seen steady growth, thanks to benefits such as cost-efficiency and low carbon footprint. Two-wheeler and three-wheeler electric vehicles have taken the lead in driving this growth, while the EV segment saw sales of over 1 lakh units per month in the first half of 2023. Three-wheelers made up 36 percent of this category. Whereas the share of two-wheelers in the electric vehicles market is 58 percent. Furthermore, the report suggests that more than half of the three-wheelers sold in India in 2022 were electric.
government assistance
Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) has been a major instrument of the government towards promoting electric vehicles in India. The first phase of the scheme started in 2015 and ended on 31 March 2019. Subsequently, FAME-II was implemented with a budget of Rs 10,000 crore. Along with this, various state governments provided benefits including registration fees and road tax exemption on the purchase of electric vehicles.
economical charging
The development of charging infrastructure is important to support the growing electric vehicle numbers in India. The Government of India has worked together with private entities to develop this network. Additionally, efforts have been made to develop EV-friendly highways, of which the Delhi-Chandigarh Highway is the first among them.
As a result of these infrastructural developments, India has become the third most affordable country in the world to charge EVs. Research by an Australia-based organization shows that Argentina, Malaysia and India are in favor of charging EVs. Meanwhile, Denmark, Italy and Germany are among the most expensive countries.