MBA (Finance), Semester 1st

Seminar – Presentation
INCENTIVIZATION AND TREND
ON ELECTRIC VEHICLES &
CHARGING INFRASTRUCTURE IN
INDIA
Universal School of Financial Studies,
Guru Nanak Dev University,
Amritsar

Presented By:
Manpreet
Content
• Global Scenario
• Indian Scenario
• Introduction
• Impact of EV : India
• Literature Review
• Electric Vehicle Polices and Incentives- Central Government
• Electric Vehicle Polices and Incentives- State Government
• Result of EV Polices and Incentives
• Challenges to EV Market
• Possible Solution
• Conclusion
Global Scenario
• A drastic change has been notified in past few decades in Global Climate due to
begroaning Green House Gases (GHG) emissions.
• CO2 is a major concern from other pollutants when transport sector is taken
into account.
• Almost 14% of carbon in emitted by this sector, that is increasing rapidly year
by year.
• To curtail this impact at globally, Electric vehicles (EVs) are an innovative step
taken to reduce carbon footprints.
 Indian
Scenarios
• India ranked third in term of generation of GHG emission
worldwide with an average of 2,660 million tons of CO2
annually.
• According to the Ministry of Environment Forest and Climate
Change (MoEFCC) 90% of CO2 emission is contributed by the
transport sector.

• To deal with emissions problem, a summit- Electric Vehicles has

framed along with a target to remove all Internal combustion
Engine (ICE) vehicles with electric vehicles (EV).
• India, moreover, binds to pledge of achieving 30% mode share of
EVs up to 2030.
• To do so various Incentives are framed by it at center and state
level such as FAME program, e-vehicle policy, and EV30@30.
Introduction
Electric Vehicles are vehicles that are propelled by electricity or electric
power. These are easy to maintain and cheaper as compare to ICE vehicles.
In term of efficiency, EVs are 6 times more efficient than ICE vehicles. In
India, vehicular market has gained a special attention after the
groundbreaking introduction of EVs on ground and is still in growth.
In first half of year 2023, the sales of EVs, globally, has ramped up by 40%
from previous year. Further projected that new cars registration will be 35%
to 40% by year 2030. As per the Centre for Energy Finance, 2020, around
102 million EVs will likely to be added on Indian roads by year 2030.
 Impacts of EV’s:
India
Push GOI to Reframe

Norms and Standard of automobile manufacturing and industries, Polices related to

transport sector especially Motor Vehicles Act, Taxation system on registration of
vehicles and other duties that varies according to type and category of vehicles.

Evolution of New Filed

Solar Energy Plant to meet the growing demand of electricity with EVs without using non-
renewable energy sources, Battery Swapping Stations, Charging Points or Charging
Stations, Charging Infrastructure industries, and Vehicle Scrappage industries.
Literature
Batteries installed in them
Review
There are majorly
Electric vehicles
three types of
plying
The main power source of any kind of EV is their
and there are five major battery types used in India.

on road: Parameter Li-Ion Ni-MH SSB Lead Acid AI-Ion Super

Battery Electric Capacitor
Vehicles (BEV’s) Capacity High Satisfactory High Satisfactory Very High High
Life Cycle High Very High High Satisfactory Satisfactory High
Performance High Low High Satisfactory Very High Very High
Efficiency High Low High Satisfactory Very High Satisfactory
Reliability High Very High High Satisfactory Very High High
Hybrid Electric Cost High High Very High Low Very High Very High
Vehicles (HEV’s)
Charging infrastructures are recognized as one of the basic needs of raising
demand of EV. Currently, there are few types of charging infrastructures available in
India, are:
Parameters Level 1 Level 2 Level 2 Level 3
Voltage 120 V 208 or 240 V 400 V 200-450 V
Plug-In Hybrid Electric Current Type Single Phase AC Single Phase AC Three Phase DC
Vehicles (PHEV’s) Max. Output 2.3 kW 7.4 kW 22 kW 400 kW
Charging Time 30-40 hrs. 2.5-4.5 hrs. 51 min. 20-30 min.
(For 60 kwh
battery)
EV Policies and
Incentives Vehicle Scrappage Policy (2022):

• The GoI introduced the Vehicle Scrappage Policy to phase out polluting and old
vehicles more than 20 years (private) or 15 years (commercial) classified as End-
of-Life Vehicles (ELVs). The policy offers various incentives:

• a scrap value of 4-6% of the vehicle's ex-showroom price, provided by the

scrapping center.

• State road tax rebates of up to 25% for personal vehicles and 15% for commercial
vehicles.

• After scrapping, owners can receive a 5% discount on the cost of a new vehicle.

Motor Vehicle Act (MVA), 2019:

• Amendments have been made to the Motor Vehicle (MV) Act to promote EVs over
conventional vehicles.

• The Ministry of Road Transport and Highways (MoRTH) has issued a notification
exempting EVs from registration fees, paying insurance or renewal fees and road
taxes are waived off.
EV Policies and Incentives
GoI launched the National Electric Mobility Mission Plan (NEMMP-2020) to address the
growing need for EVs and related infrastructure, such as charging stations.

National Electric Mobility Mission Plan (NEMMP):

The NEMMP advocates for the promotion of EV manufacturing and increased sales
through fiscal support. To achieve this, the FAME scheme was introduced in two
phases:.

a) FAME (Phase-I):

The first phase of FAME, implemented on April 1, 2015, initially planned for two years,
was extended until March 31, 2019. Approximately 278,000 electric and hybrid
vehicles were incentivized with ₹343 crores in demand-side subsidies. Additionally,
465 buses were sanctioned for various cities and states.

b) FAME (Phase-II):

Launched on April 1, 2019, FAME-II is being implemented over three years with a
budget allocation of ₹10,000 crores. The scheme includes incentives of ₹15,000 per
kWh, with a cap or supply incentive of 40% of the EV’s cost. Furthermore, the Goods
and Services Tax (GST) on EVs was reduced from 12% to 5%, and from 18% to 5% on
charging stations.

Income tax exemption of ₹1.5 lakh on loan interest for EV purchases and Subsidize
7,000 buses nationwide, with 3,000 already in operation. It also proposes setting up
 EV Policies and Incentives
2-W 3-W 4-W E- Buses
Delhi 2-W 4-W
Up to ₹30,000 Up to ₹30,000 ₹10,000/kWh 50% ofispublic transport
electric.
Uttarakhand
10% or ₹75,000 (first 5,000 units) ₹50,000 for first 1,000 units

2-W 3-W 4-W E-Buses

2-W 3-W 4-W U.P
Punjab ₹10,000 for first 1 ₹30,000 for 10,000 E- up to ₹2 lakh ₹ 50,000 ₹ 25,000 ₹ 40,000
₹30,000-₹50,000
lakh units rickshaws and autos
2-W 3-W 4-W
Assam ₹10,000/kWh ₹75,000 for ₹25,000 for
2-W 3-W 4-W for first 1 lakh 75,000 units 25,000 units
units
Rajasthan
₹2,000-₹10,000 ₹4,000-₹10,000 ₹30,000-₹50,000

2-W 3-W 4-W

Gujarat ₹10,000 per kWh ₹10,000 per kWh ₹10,000 per kWh
(eligibility criteria (eligibility criteria (eligibility criteria
apply) apply) apply) 2-W 3-W 4-W E-Buses
M.P. Registration fees Registration fees for Registration Permit
exemption (for fees for 9,000 exemption for
7,500 e-rickshaws
22,500 units) units 1,500

2-W 3-W 4-W

2-W 3-W 4-W
Maharashtra ₹5,000-₹10,000/ Bihar ₹5,000/kWh for first
kWh ₹5,000-₹30,000 ₹5,000-₹1,50,000 10,000 units 50% MV tax rebate ₹10,000/kWh for first 1,000 units

2-W 3-W 4-W E-Buses

2-W 3-W 4-W E-Buses Tamil Nadu ₹10,000/kWh up to ₹10,000/kWh up to ₹10,000/kWh up to ₹20,000/kWh up to
Telangana 100% road-tax & ₹15,000 per 100% road-tax 100% road-tax ₹30,000 ₹40,000 ₹1,50,000 ₹10,00,000
registration fees vehicle retrofit & registration & registration
exemption incentive fees exemption fees exemption
2-W 3-W
Kerala
₹30,000 or 25% of EV price 25% of EV price
 Result of EV Policies and
Incentives Growth rate of sales of EV in India (2019-

100.00
• Indian Automobile industry is 4th largest in world. The well-known 2023)
producers of this market are Tata Motors, Mahindra and Mahindra Ltd.
That presently at step up with their EV segments in Indian market.

Percentage

48.16
•

32.54
Global EV automobile industries in Indian Market are like Hyundai, Kia,

10.47
MIG and BMW.

5.02

3.80
• They are providing various EV segments in market with various
2019 2020 2021 2022 2023 Total
varieties to consumers as per their demand and budget, result into
Year
swift growth of EVs.
• In India, Tata Motors is in the lead, with an 86% market share from its Proportion of saled each type of EV in Between 2019-
Tigor and Nexon EV models include MG Motor's MG ZS EV at 9% and 0.16 2023
5.87 0.40
Hyundai's Kona at 1.6%. In the two-wheeler, Ola Electric has highest 3.87

market share 27.2%, after it TVS Motor at 19.3% and Ather Energy at 2-Wheeler
14.6%. 3-Wheeler(Passenger)
• Mahindra & Mahindra dominates the three-wheeler EV market, 3-Wheeler(Good)
followed by Piaggio Vehicles. 32.31 Car/SUV
57.39
• Out of all three EV types - BVs has recorded highest sales in India and Bus
it has observed that the buyer mostly inclined towards BEVs over other Others
types whose sales is projected to be 75% by year 2030.
 Result of EV Policies and
Incentives
• U.P., representing one-third of the country’s total EVs with 6.11 lakh
vehicles registered. The high adoption rate is of E-rickshaws that was
85% of total EV sales in 2022 and E-scooters 14% share , E-cars less than
1%.
• Maharashtra, Electric 2-wheelers lead with 86% market share.
• Karnataka, electric 2-wheelers account 91% of the state’s EV sales.
• After Implementation of Faster Adoption and Manufacturing of Electric
Vehicles (FAME) Scheme, 1.392 million EVs have been sold by year 2022, and
an increase to 50 million EVs by year 2030 has anticipated. The EV market is
expected to grow at a compound annual growth rate (CAGR) of 36% .
• In 2023, the sale of electric 2-wheelers reached 57.39%, 3-wheelers
(passenger and goods) 32.31% and 3.87% respectively, e-cars 5.87%, e-
buses 0.16%, and others 0.44% while e-buses accounted for 41.40% of
their total sales in 2023.
• The major charger’s producers’ companies in India are, Delta Electronics
India, Mass Tech controls pt. ltd., ABB India, Amara Raja, Exicom, and P2
Power Solutions. Furthermore, EESL, REIL, Tata Power, OPG (Okaya Power
Group), EVQ Point, Brightblu, Magenta group, Fortum, Numocity, EVQ-
Point, and volttic are the top EV charging station aggregators in India.
Challenges to EV Market
The lack of product innovation on the product front challenges, diminishes the
adoption of electric vehicles.
The EV’s capital and running expenses are the main factor influencing market
adoption and consumer approval.
Capital cost has always been a significant deciding factor in EV purchases. About
63% of buyers stated that an EV is out of their price range.

Lack of charging/swapping Infrastructure is the major obstacle in EV adoption,

particularly in the case of personal cars which is the confluence of short-range
capability and lack of charging infrastructure.
To encourage the public’s acceptance of EVs, sufficient charging infrastructure across
roads is required in addition to advancements in battery technology.
Maintenance and spare parts availability, the spare and service availability is very
limited for the electrical vehicle. It is very much required especially for automobiles
traveling on Indian roads. The rapid rise in electricity demand, and the sudden shift
to EVs can increase the electricity demand and as per the present scenario, it will
make the scarcity of electricity in India.
•
Possible Solutions
Prices of EVs would come down because of the
improvements in battery technology, government policies
supporting battery and other EV components
development, and an increase in the production capacity
of battery manufacturers.
• Adoption of EVs in heavier vehicles and Zero emission
policies.
• Reduction of GST from 12% to 5% and an additional
income tax deduction of Rs 1.5 lakhs on the interest paid
on loans taken to purchase EVs.

• The budget reduced customs duty on parts of the EV such

as the Onboard charger, e-Compressor, and Charging gun
to zero.
• Increasing the public charging stations and parking area
are also a way to increase the adoption of EVs.
• Apart from the central government, several state
governments also drafted their own EV policies to meet
specific needs.
 Conclusion

India moving to become the largest untapped EV market globally. The ability of the EV
business to grow is constrained by variety of market barriers. The “Make in India” initiative
encourages firms to make parts locally, particularly Li-ion batteries, which must be produced
within India. A new business model that permits high infrastructure utilization for both
charging and swapping solutions must be found in order to accelerate the EV adoption. A
well-established EV infrastructure is likely to be developed across the nation as a result of
recent laws, such as the battery swapping legislation, that were enacted to encourage a shift
towards green energy generation and decentralization of energy distribution. There is
currently very little official infrastructure and adaptive technologies for EVs, which reflects in
the sales of EVs. When there is an implementation of advanced technologies such as digital
twins, power train evolution, optimal charging infrastructure, fast charging infrastructure,
battery management, and a new evolution in battery, the virtual method for EV-grid
integration and blockchain technology, the EVs can undoubtedly be mainstream
transportation in India. Further, the EV market is projected to be well-positioned for major
development in the upcoming decade. Thanks to a substantial infrastructure that is accessible,
inexpensive, and supports all consumer groups as well as a solid finance ecosystem. The
governmental incentives and technological breakthroughs would certainly.
Reference’s
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electric-vehicles-in-india-is-it-the-future-of-transportation/articleshow/97142406.cms
• Aijaz, R. (2022, Oct 18). Electric Vehicles in India: Filling the Gaps in Awareness and
Policy. Retrieved from Observer Research Foundation:
https://www.orfonline.org/research/electric-vehicles-in-india-filling-the-gaps-in-awareness-
and-policy/
• Hema, R., & Venkatarangan, M. (2022). Adoption of EV: Landscape of EV and
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Commerce and Public Enterprise Department.
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https://evreadyindia.org/ev-sales/
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Transport Department.
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THANK YOU!
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environmental task, but also the responsibility
of our future generations."