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India to Go Electric in 2022 or Not?

Electric VehicleGyrating automakers in a whirlpool of constant research and intrigue, the Electric Vehicles market has become the new face of next-generation vehicles.

Due to its variety of features and long-term effects in the oncoming issues related to sustainability, climate change and clean energy, Electric Vehicles (EV) have become the top choice of owners.

This ongoing revolution of converting the automotive industry fully electric is happening at a much faster rate and on a grand level.

Stressed in various environmental as well as major world leaders’ summits, every government around the world had expressed its interest as well as keenness in adopting EVs as a major transport restructure in their respective countries.

And the case seems to be true in India too, as the government of India is heavily investing as well as propagating the merits of converting India’s automobile industry electric.

The popularity of the EV Market in India can be measured simply by checking the sheer number of new EV makers and start-ups sprouting everywhere daily.

Despite all this fanfare, the road to conquer mass EV adoption is still long.

Before, stating the impending issues plaguing the growth of the EV Market in India, as well as the current market scenario of India’s automotive industry, let’s take a glance at some of the most popular government incentives and policies that promoted the growth of the EV Market in India.

Government’s Stance on EV Market in India

EVsLeaving no stone unturned, the Government of India has taken several major steps to further its dream of electric mobility.

Ministry of Power had launched the National E-Mobility program in India and introduced several electric cars.

In another major step, the Government also expressed its desire to build charging infrastructure at a large scale whose construction is already underway under the policy framework to have 30% of vehicles in India as EVs.

India’s Union Minister for Road Transport & Highways along with Union Minister of State (IC) for Power and New & Renewable Energy had also unveiled the Go Electric Campaign with the main aim to spread awareness on the merits of e-mobility and EV Market in India as well as its charging infrastructure.

Showing an aggressive stance on the government’s side in promoting EV Market in India, Special policy measures were undertaken like slashing GST on EVs to 5% in comparison to the normal rate of 28% for combustion engines, exempting loans to purchase EVs constitute some of the small incentives.

Another leeway from the government side came from the Union cabinet when they proposed customs duty exemption on some of the EV parts like electric drive assembly, e-compressor, charging gun and an onboard charger to promote EV Manufacturing.

In a recent change, the Government of India extended the FAME-II scheme until March 2024 as announced in June 2021.

Hiccups for EV Market in India in 2022

EV in IndiaThe topic of main concern plaguing every consumer in India starts with the price range of this budding market and goes towards the speed, charging and recharging break time of EVs in real-time.

In one of the most popular and wide surveys conducted by Castrol last year, showed the general attitude of common Indian consumers towards the EV Market in India.

According to the data collected from various individuals and after careful analysis, the majority of the respondents expressed their opinion about EV purchase as something which is beyond their means right now. The fact stemmed from the high price range of EVs in the global market.

Other could be due to the lack of general charging infrastructure across India. Though, many consumers seem interested to buy EVs in 2022, around 40 percent of fleet owners as well as car services companies wanted their competitors to make the first move, therefore following a wait and watch approach.

EV Market in India has shown slower growth in comparison to other countries due to the complete unavailability of primary battery cell manufacturing in India that puts India at the risk of increasing the country’s trade deficit.

Right now, the majority of start-up manufacturers and big automotive brands rely heavily on imported batteries that raises the overall manufacturing cost of these EVs.

Future of EV Market in India

The road to go fully electric is not unattainable as India sustains one of the largest consumer markets in the world.

This is also the main reason why Tesla is planning to launch its products and services in the budding automobile industry of EVs.

And though, the pandemic has considerably slowed the speed of India’s EV growth, big brands are steadily launching their e-vehicles version in the EV Market in India.

With the government recognizing the hurdles and taking active steps in revamping the EV schemes and policies, the full manufacturing of EVs and all their parts will soon become a reality.

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Aishwarya Saxena

A book geek, with creative mind, an electronics degree, and zealous for writing.Creativity is the one thing in her opinion which drove her to enter into editing field. Allured towards south Indian cuisine and culture, love to discover new cultures and their customs. Relishes in discovering new music genres.

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