India to be a global leader in EV sector by 2030

By the year 2030, India is likely to become a key player in all sectors of electric vehicles (EVs). While many countries are withdrawing or reducing EV subsidies, the EV industry of India continues to receive subsidy support from the government.

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According to Kamran Rizvi, Secretary, Ministry of Heavy Industries, “India will be a global giant in all sectors of electric vehicles (EVs) by 2030. In 2-wheelers, it will be much earlier.” 

The Secretary informed that while most other countries like China, and the UK are withdrawing or reducing EV subsidies, India continues to spend more money to support the EV industry. However, the subsidy will eventually be withdrawn.

In 2019, a Rs 10,000 crore programme under the FAME-II scheme was announced by the government to promote electric and hybrid vehicles. It is the extended version of the FAME scheme, launched on April 1, 2015, with a total outlay of Rs 895 crore.

For the three-wheeler and four-wheeler segments, incentives are applicable mainly to vehicles used for public transport or registered commercial purposes. Under the two-wheeler segment, private vehicles are in prime focus.

Of late, however, it has been reported that the government is exploring legal options against electric two-wheeler companies for not complying with the FAME II scheme norms. 

The government has called for Rs 469 crore from seven electric two-wheeler makers for claiming incentives while ‘not complying’ with the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme norms. The seven companies are Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility, and Lohia Auto.