Top EV-friendly States In India That Offer The Best Incentives To Electric Car Buyers

 Electric cars are still not as affordable in India as they are in many developed countries. To help this, the Indian government has been progressively taking steps to accelerate EV adoption in the country by rolling out various subsidies and incentives to both manufacturers and car buyers. 

The incentives vary depending on which Indian state you live in, plus new concessions are rolled out as electric vehicle regulations evolve, confusing EV buyers even more. So, on this World Environment Day, we have decoded the various schemes and incentives awarded by central and state governments to make your decision of switching to an electric car or bike easier. 

First, let’s talk about the central government’s scheme. The 2019 Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME-II) scheme offers the following incentives: 

For two-wheelers: Rs 10,000 per kWh of battery capacity, up to Rs 20,000

For four-wheelers: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh 

The above benefits are applicable on the electric cars and two-wheelers that meet the criteria defined under the FAME-II scheme, over and above state government concessions. From the cars that are currently on sale in India, the Tata Nexon EV, Mahindra e-Verito and Tata Tigor EV fulfil the eligibility criteria under this scheme. But don’t worry, even if your next EV is not one of these three, a recently drafted amendment to the Central Motor Vehicle Rules, once approved, will exempt all electric vehicles from registration and renewal fees across the country. 

All EVs are currently subjected to a lower rate of the Goods and Services Tax (GST) at 5 per cent, which can be nearly 6 to 8 times less than that of petrol and diesel cars. First-time individual buyers who take a loan can also get tax benefits of up to Rs 1.5 lakh under Section 80EEB of the Income Tax Act. 

As for charging infrastructure, several state governments have taken up the Centre’s directives for setting up charging stations for electric cars and bikes across the country. Some state governments have invested in EV adoption by offering incentives to electric car buyers that supplement the Centre’s subsidies. Here are the five Indian states that offer the most incentives on EVs: 

Delhi: 

Subsidy for two-wheelers: Rs 5,000 per kWh of battery capacity, up to Rs 30,000 + registration and road tax exemption

Subsidy for cars: Rs 10,000 per kWh of battery capacity, up to Rs 1.5 lakh + registration and road tax exemption 

Delhi tops this list by matching the subsidies provided by the central government. The benefits of buying an EV in Delhi can be nearly twice that of some other states. In addition, the state government has waived off the registration fees and road tax on all types of electric vehicles under its current scheme. There are currently 72 charging stations listed on the Delhi government website, making this one of the best places to own an electric car or two-wheeler in the country. Keep in mind that the benefits for electric cars are only applicable to the first 1,000 cars to be registered in the state. 

Maharashtra: 

Subsidy for two-wheelers: Rs 5,000 + registration and road tax exemption

Subsidy for cars: Rs 1 lakh + registration and road tax exemption 

According to the state’s 2018 EV policy, Maharashtra offers a 15 per cent subsidy on the purchase cost of the first 70,000 electric bikes and 10,000 cars, but the maximum limits set the benefits lower than you would expect. Nevertheless, these incentives are supplemental to the FAME-II subsidies and significantly reduce the burden of electric car buyers in the state. All EVs registered in Maharashtra are currently exempt from road tax and registration fees. The Rs 1 lakh subsidy is applicable to the first 10,000 electric cars to be registered under this policy until 2023. For example, this translates to savings of as much as Rs 5 lakh on a Tata Nexon EV — with a Rs 1.5 lakh FAME-II subsidy, Rs 1 lakh state government subsidy and Rs 1.5 lakh saved in taxes on interest payments. More than Rs 1.2 lakh are saved on road tax and registration fees. The state cabinet is expected to approve a new 2021 policy that offers no new benefits to EV buyers, but sets ambitious goals to build EV-supporting infrastructure and electrify public transport and government vehicle fleets. 

Meghalaya: 

Subsidy for two-wheelers: Rs 10,000 per kWh of battery capacity + registration and road tax exemption 

Subsidy for cars: Rs 4,000 per kWh of battery capacity + registration and road tax exemption 

Meghalaya’s 2021 EV policy is currently aimed at early adopters in the north-eastern state and will cover fewer vehicles than other state policies in this list — 3,500 two-wheelers and 2,500 four-wheelers. Meghalaya’s EV policy is valid for 5 years and exempts all EVs from registration fees and road tax. According to the official document, EVs will be registered on priority at all state Road Transport Offices (RTOs). The state government will support the setting up of EV charging stations by offering lower electricity tariffs and free land to the government, public sector and private companies for the duration of the policy. 

Karnataka:

Incentive: Road tax and registration fee exemption

Karnataka’s contribution to making EVs more affordable and accessible in India is less direct but no less significant than that of other states in this list. The state government’s EV policy has recently been amended to offer even more concessions and subsidies for EV component and battery manufacturing, battery swapping, and EV charging enterprises. Apart from inviting Tesla to the country, Karnataka offers full exemption from road tax and registration fees for electric vehicles. 

Andhra Pradesh:

Incentive: Road tax and registration fee exemption

Like Karnataka, the state government of Andhra Pradesh has also announced concessions for enterprises that will help build EV infrastructure, including nearly 400 charging stations. There is pressure on the government to announce state subsidies in addition to FAME-II subsidies for electric car and two-wheeler buyers. For now, EVs are exempt from registration fees and road taxes in the state. 

The list of states with EV policies continues to grow in 2021. Telangana grants registration fee and road tax exemption. Goa has announced registration fee and road tax waivers for electric two-wheelers. If approved, a 2019 draft amendment to Bihar’s EV policy will match the Centre’s Rs 20,000 subsidy on electric 2-wheelers and Rs 1.5 lakh on electric cars! Other states that have drafted EV policies are Uttar Pradesh, Kerala, Uttarakhand, Madhya Pradesh, Tamil Nadu, Gujarat, Punjab and Chandigarh. 

But there are several more challenges to be overcome. For one, there are limits on the number of beneficiaries under each scheme and not all electric cars sold in India are eligible for subsidies. models of cars are eligible. Heavy taxes on EVs and hybrids imported by carmakers as completely built units (CBUs) has further narrowed options for those wanting an affordable EV. We hope future policies correct the course so that electric vehicles can soon become the norm for urban transportation.

10 Facts about electric cars

 Electric cars, also known as EVs, have recently gained newfound popularity. Global EV sales rose 40% between 2019 and 2020, due to the growing availability of different types of affordable electric cars, Tesla’s historical stock market success and rising fuel costs. Besides the 19 EVs available from Tesla, Nissan, Kia, Porsche and other manufacturers, there are an additional 18 models expected before 2021 is over — and another 29 to 30 that may be released in the next few years.

The car industry is rapidly changing, with the latest alternative-energy vehicles fostering technology that seems light years away from the combustible-engine vehicle. Extended ranges and a growing network of high-speed EV chargers make it possible for the electric-vehicle driver to travel further, removing one of the biggest objections consumers have. Bankrate weighs the pros and cons of electric cars and discusses how they work.

Electric cars in 2021

• EV battery costs have dropped $1,000 per kWh in ten years. (Bloomberg)

• There were 25,313 charging stations in the U.S. by the end of 2020, triple the 7,340 there were in 2014. (U.S. Department of Transportation)

• California leads with 12,389 charging stations, followed by New York, Florida and Texas with 2,000 or more each. (U.S. Department of Transportation)

• There are 10 million EVs on the road. (S&P Global)

• 122,016 EVs were sold in March 2021 setting sales records. (U.S. Department of Transportation)

• Hybrid-Electric Vehicles (HEVs): 75,959

• Battery Electric Vehicles (BEVs): 33,370

• Plug-In Hybrid-Electric Vehicles (PHEVs): 12,687

Key electric car facts

• The first electric vehicle was created in 1832. (Energy.gov)

• An EV would cost only $1 in energy to travel the same distance as a gallon of gas, which currently averages $3.04. (Energy.gov)

• A Tesla Roadster is faster than most sports cars, with an acceleration speed of 0 to 60 in 1.9 seconds. To compare, a Ferrari or Lamborghini accelerates from 0 to 62 in 2.8 to 2.9 seconds. (Tesla and Auto Express)

• Nearly half the EVs in the world are in China. (Global EV Outlook)

• Roughly 96% of EV owners would buy or lease another one. (AAA)

• EVs are more efficient. Up to 80 percent of the battery energy powers the vehicle, compared to 14% to 26% of the energy from a gasoline-powered car. (Energy.gov)

• About 57% of consumers avoid EVs because they worry about running out of charge but only 5% of owners have run out. (AAA)

What is an electric car?

• Tesla (Model 3 and Model X)

• Toyota (Prius PHEV)

• Chevrolet (Bolt)

• Nissan (Leaf)

Types of electric cars

• Hybrid-Electric Vehicles (HEVs): HEVs combine a gas-powered engine with one (or more) electric motors. An HEV does not plug in; it collects energy through regenerative braking. The Toyota Prius may be one of the best-known HEVs.

• Plug-In Hybrid-Electric Vehicles (PHEVs): Similar to an HEV, the main difference is that a PHEV is able to plug in to charge. The Prius also comes as a plug-in version.

• Battery Electric Vehicles (BEVs): Also known as an all-electric car, it needs to be plugged in to recharge. Teslas are BEVs.

How do electric cars work?

• Quiet operation: Many passersby often get startled and say they did not hear an EV approaching, and first-time owners say they sometimes are not sure if their car is on.

• Sluggish acceleration: Some of the hybrid EVs are designed to accelerate slowly and coast, which takes some getting used to. However, electric plug-ins, such as the Tesla or Porsche EVs, are very fast.

• Marked deceleration: EVs typically take advantage of regenerative braking to recharge the battery. Letting off the accelerator could cause the car to noticeably slow down more than a regular vehicle.

• Extra trunk or “frunk” space: Pure EVs don’t have a combustible engine. Therefore, the front hood is empty and, in many models, used as a front trunk.

What powers electric cars?
Pros and cons of electric cars
Pros

• Energy-efficient: Gas vehicles waste most of the energy they produce. In comparison, up to 80 percent of a battery’s energy powers an electric car.

• Lower maintenance costs: EVs do not have an engine that needs maintenance or oil replacement. And in the case of pure-electric vehicles, brake use is minimal due to the regenerative braking that automatically slows the car down when you let your foot off the accelerator.

• Smaller environmental impact: EVs do not emit pollutants from tailpipes and do not require as much (or sometimes any) gasoline.

Cons

• Cost: Although the cost is steadily decreasing, EVs are still 10% to 40% more expensive to buy than a gasoline-powered vehicle.

• Range: According to Energy.gov, electric vehicles can only travel 100 to 300 miles in one charge, depending on the model.

• Charging: Charging an EV takes much longer than filling up a car with fuel. Charging a Tesla at a Supercharger could take 45 minutes to one hour. Charging at home could take an average of 11.5 hours and could potentially cause a very expensive electric bill.

How much do electric cars cost?

Average Cost	Gas Vehicle	Electric Vehicle
Fuel/energy	$2.85	$1.16
Purchase price	$40,857	$55,600
Annual average for full coverage car insurance	$1,674	$1,550 to $2,963
Annual maintenance	$9,200	$4,600

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Key takeaways:

Some significant developments are pushing EVs into the forefront. As more electric cars are produced, the cost to produce batteries has dropped, making the electric vehicle more affordable. Today, batteries are approaching a remarkable price of $100 per kilowatt-hour (kWh). Ten years ago, batteries sold for more than $1,100/kWh. Considering that the battery is the most expensive electric vehicle component, the car has become more accessible to the masses.

In addition, charging stations have more than tripled from 7,340 in 2014. By the end of 2020, there were 25,313 charging stations throughout the country. California leads with 12,839. New York, Florida and Texas have the next highest number of charging stations, with 2,000 or more EV charging stations each.

There are over 10 million EVs on the road. EV sales dropped in 2020 to 296,000 units from 331,000 in 2019 due to the pandemic. However, things turned around in 2021. According to the Bureau of Transportation, March sales set records for all types of electric cars. The all-time high of 122,016 EVs sold grew the EV market share to 7.6%:

Electric vehicles are not a passing trend; they become more affordable each year and consumers are becoming more comfortable with the idea of plugging in instead of fueling up. A recent survey by Consumer Reports found that 71 percent of U.S. drivers would consider buying an EV in the future. One third of the respondents said an EV would be their next purchase. Other interesting electric car facts include:

An electric car is powered by an electric motor instead of a gas-powered combustion engine. An EV’s battery can be charged at home or at an EV charging station. The Alternative Fuels Data Center (AFDC) reports that the most popular EV manufacturers are:

Electric cars come in three main types:

An electric vehicle works similarly to a gas-powered car. However, EV drivers may spot some differences from gas-powered vehicles, such as:

EVs use batteries to power the vehicle. A traction battery pack drives the vehicle’s wheels. You will find that some cars use electric motor-generators that work to drive the EV and regenerate the battery.

Electric vehicles have come a long way in the last few years — and have much more room for improvement. Consider the following benefits and drawbacks.

Many factors affect the cost of owning and driving an electric vehicle. Compare the price of driving a gas-powered car to an EV, and you will see some balance between the savings and higher costs of owning an EV.

Technology and infrastructure advancements are making EVs an excellent alternative to gas-powered cars. You could eliminate your gas bill and become part of the sustainable movement. Best of all, driving an EV does not mean you compromise performance or fun — many models are well-equipped to drive as comfortably and capably as a traditional combustion vehicle.

5 things to know about the future of electric vehicles

 While global car sales took a pandemic-related hit last year, electric vehicles (EVs) bucked the trend.

The number of EVs registered across the globe expanded massively in 2020, according to the International Energy Agency (IEA) – and this is set to continue over the next decade.

Here are five facts about the market from the agency’s first Global Electric Vehicle Outlook report.

1. There were 11 million registered electric vehicles on the road at the end of last year

10 million of these were cars. The total number of electric cars, buses, vans and trucks is projected to rise to 145 million, or 7% of road transportation, by the end of the decade under governments’ existing energy and climate policies.

With even bolder climate programmes and emission reduction targets, there could be up to 230 million electric vehicles on our streets – 12% of all road transport – by 2030. Motorcycles and mopeds were not included in the figures.

2. Electric car buying remained high in the face of the pandemic

Electric car registrations were up 41% in 2020, despite a 16% drop in overall car sales across the world.

Last year was indeed a ground-breaking one for the sector, as Europe overtook China as the centre of the global electric car market for the first time. From global electric car sales of 3 million, registrations in Europe more than doubled to 1.4 million, while in China they increased to 1.2 million.

3. Consumer and government spending on electric cars rose in 2020

A rise in the number of different EV car models available in the market to 370 and the falling cost of batteries saw consumers spend 50% more on electric cars in 2020, to the tune of $120 billion.

Governments also continued to encourage the move to EVs, spending $14 billion on direct purchase incentives and tax deductions – a 25% rise year-on-year. Before the pandemic, many countries strengthened key policies such as CO2 emission standards and zero-emission vehicle (ZEV) directives. By the end of 2020, more than 20 countries had either announced bans on sales of internal combustion engine cars or decreed that all new sales be zero-emission.

Some European countries increased buying incentives and incorporated the promotion of EVs into their post-pandemic economic recovery plans. China postponed the end of its New Energy Vehicle (NEV) subsidy scheme to 2022, to safeguard EV sales from the economic downturn.

4. Electric bus and truck registrations also increased within the world’s largest markets

Across China, Europe and North America these rises were mainly due to municipal governments imposing greater emission reductions on commercial vehicles operating within their towns and cities. China, for example, commands a 27% share of all electric bus sales, where new registrations were up 9% in 2020.

Electric heavy-duty trucks, while more established in China, have only recently begun to come on stream further afield, currently consisting of around 1% of all truck sales in both Europe and the US.

5. Widespread EV adoption could significantly reduce greenhouse gas emissions

The IEA says mass adoption has the potential to cut emissions by more than one-third by 2030 under the existing ‘stated’ green policies.

Up to two-thirds of emissions could be slashed in that time if countries endorse more ambitious ‘sustainable development’ targets.

Long road to sustainability

While progress is being made, electric cars currently make up 1% of the global fleet. And significant barriers to the wholesale adoption of EVs remain, the report says.

Insufficient charging infrastructure continues to prevent wider use, as does the low supply of appropriate electric vehicles in many sectors, such as heavy industry. Despite falling battery costs, rising vehicle production to meet demand, and the promise of savings over the lifetime of an EV from lower fuel and maintenance costs, upfront prices remain prohibitive for some.

On the supply side, there are also challenges related to the poor sustainability levels associated with EV batteries: the sourcing of raw materials is frequently concentrated in a few developing countries that are often politically volatile and economically fragile.

A related concern is around recyclability. EV batteries consist of multiple Lithium-ion cells that are largely difficult to dismantle and which contain hazardous materials.

But there are some recent examples of the industry responding to this challenge.

Nissan is now reusing batteries from its Leaf cars to power automated guided vehicles used around assembly plants. And while Volkswagen has also redeployed old batteries, it has also opened a recycling plant in Salzgitter, Germany.

Global Battery Alliance

But until recycling moves from the fringe to the mainstream of EV battery production, demand for critical raw materials will only grow.

The Global Battery Alliance (GBA), initiated with support of the World Economic Forum, is a public-private collaboration between 70 organizations across manufacturing, public service and civil society that was established to address this issue by working to bring sustainability to the battery value chain.

The GBA advocates for the production of EV batteries and their by-products to be integrated into the circular economy and promoting transparency and reduction of greenhouse emissions from battery manufacturing.

Last year, the alliance outlined 10 guiding principles for a sustainable battery value chain, to significantly reduce the 40% of all annual global carbon emissions that the transport and power industry is currently responsible for.

It is also committed to policies in which EV battery production takes into account local economies, their environments and human rights, especially in relation to child labour exploitation.

US-based Triton EV to deliver 2,000 electric semi-trucks to India.

 Triton Electric Vehicle, LLC, a US-based company has said that it has got an order from a South Indian company for its EVs. Himanshu Patel, CEO and founder at Triton Electric Vehicles, LLC shared this news on social media. He said that Talwar Auto Garages PVT Ltd, one of the largest automotive distributors in South India, has signed a purchase order for 2,000 Triton EV semi-trucks. The trucks are worth USD 300 million (Rs 21,76,96,50,000). The first deliveries are scheduled almost after a year. Himanshu says that Talwar will supply these trucks to their commercial industrial clients in the southern states of India – Kerala, Tamil Nadu, Karnataka, Telangana, and Hyderabad. Triton EV happens to be the subsidiary of Triton Solar. “Triton Solar and Triton-EV are committed to engineering a revolutionary new global energy structure and are working closely with partner nations to accomplish this goal.”, says the company motto.

The aforementioned trucks will be made in the US and exported to India. Triton EV was recently in the news when the brand had opened its bookings for the Model H in the country. While the launch as well as price were to be announced on May 10, 2021, understandably due to the present pandemic, it has been postponed. The Model H is an eight-seater electric SUV and boasts 200kWh batteries that propel it from 0-100kmph in around three seconds. At the same time, one can fully charge the SUV in just two hours, using a fast charger. There is also a massive warranty of 10 years on the car. The Model H looks as big and butch as any other American SUV and boasts a massive 1,100km+ range.

The company says that the Model H is capable of producing more than 1,500hp and is built for the long haul. Pre-bookings had started for the Indian market but as discussed before, they have now been stopped.

Global EV gold rush fails to rub off on India.

 A massive shift is underway across the global automotive industry. And India’s automobile industry just doesn’t seem to be pressing the pedal fast enough.

 Over the past few months, everyone from General Motors to Ford Motor Company, Volkswagen and Honda have been making commitments to shift their entire fleet to electric vehicles (EV) over the next few decades. “For General Motors, our most significant carbon impact comes from tailpipe emissions of the vehicles that we sell—in our case, it’s 75 percent,” Mary Barra, CEO of General Motors, wrote on LinkedIn on January 28. “That is why it is so important that we accelerate towards a future in which every vehicle we sell is a zero-emissions vehicle.”

The company now plans to sell only those vehicles that have zero tailpipe emissions by 2035, a significant move by one of the world’s largest automakers. In April, Japanese automaker Honda made it clear that the company intends to only sell EVs and fuel cell vehicles by 2040. In Europe, American automaker Ford said it will only be offering electric cars from 2030. By 2025, Volkswagen wants to build and sell up to 3 million all-electric cars per year with over 50 purely electric-powered vehicles.

 India, however, doesn’t seem to be in any rush. While the government had set a deadline initially, and later backtracked on that commitment of selling only EVs by 2030, only a handful of car manufacturers are currently giving the electric vehicle segment a much-needed push, with the others waiting it out to see how the category will evolve. Between Maruti Suzuki and Hyundai, who control over 65 percent of the Indian automobile market, dreams of an aggressive electric vehicle plan has come to a near standstill.

Among others, Ola Electric, a newcomer in the Indian automotive space, for instance, has laid out elaborate plans and is busy building what’s expected to be the world’s largest two-wheeler factory. Once completed, at 10 million units a year, the company will account for 15 percent of the global two-wheeler market in the world.

 “The need to transform mobility to electric is there, and we can see what’s happening with pollution, so we have to build for the future paradigm, we have to build for future technology, and in mobility, it has to be electric,” Bhavish Aggarwal,  chairman and group CEO of Ola, had told Forbes India earlier. “It absolutely has to be done as fast as we can.”

The company is currently setting up the Ola Hypercharger Network in over 400 cities with more than 100,000 charging points. In the first year alone, Ola will set up over 5,000 charging points across 100 cities in India, more than double the existing charging infrastructure in the country. While all of that is currently focussed on the two-wheeler market, the company hasn’t shied away from making its intentions clear on the four-wheeler market.

 “The US and Europe are different to India,” RC Bhargava, chairman of India’s largest car manufacturer, Maruti Suzuki, tells Forbes India. “We cannot assume that if something works so well elsewhere, it will also work in India. India is different in its purchasing power, affordability criteria and overall thinking. All the talk about going electric can work in a rich country. But in a country where people are struggling to make a living, it is a difficult plan.” Maruti Suzuki currently sells one out of every two vehicles in the country.

 Even Hyundai, the country’s second largest car maker by sales, had recently said it doesn’t foresee faster adoption of electric cars in India, and may not even cross 1 percent of overall sales in the next three years. In 2019, the company had launched the Kona, an electric vehicle that sells a little less than 150 units a year.
 
Too ambitious?
 “It’s probably a little optimistic to think of existence of only EV powertrains in the next nine years in India given the expanse and sheer size of the Indian market,” says Harshvardhan Sharma, head of auto retail practice at Nomura Research Institute. “Even China, the EV global leader in sales, by 2030 is expected to achieve only 40 percent at a 120,00,000 volume. Surely, there will be an uptake of alternate power trains… however there is an assortment of alternate powertrains to choose from such as hybrids, CNG, flex fuels and even hydrogen, if we are speaking futuristically.”

 According to the Society of Manufacturers of Electric Vehicle, sales of EVs in India fell by 20 percent in FY21 to 236,802 units. In FY20, the number was 295,683 units. While passenger cars have seen some traction in recent months, particularly led by the Tata Nexon and MG ZS, their sales continue to remain marginal in comparison to gasoline-based vehicles.

 India sold over 21 million vehicles, including 17 million two-wheelers, that run on internal combustion engines (ICE) in FY20. China, where electric vehicles have seen traction in recent times, sold some 1.3 million EVs in 2020, according to Singapore-based market research firm Canalys. In a year marked by a pandemic, it accounted for over 40 percent of the global EV sales. “Would there be lesser ICE vehicles on the roads 10 years from now? Yes,” adds Sharma. “Will these be replaced with only EVs? Perhaps not. We might also want to consider that wheel-to-wheel emissions might not get eliminated completely in case of EVs as a majority of electricity in India is still generated via non-renewable resources.”

 Much of the trouble for EVs arise due to their high upfront costs, range anxiety and poor charging infrastructure. Then, there is the dependence on imports, lack of reliable maintenance and after-sales resale value. “There was a lot of talk in between about EVs and even the government was quite upbeat,” says Bhargava. “That has changed now because the reality is different. We have to also factor in the strategic implication of the current technology used in electric vehicles.”

 EVs use lithium-ion batteries as the source of power and, according to an analysis by BloombergNEF, in early 2019, of the 316 gigawatt-hours (GWh) of global lithium cell manufacturing capacity, China accounted for 73 percent of the capacity. Lithium is one of the lightest elements, and has the strongest electrochemical potential of any element, allowing lithium-based batteries to store a lot more. On May 12, India also announced a production linked incentive (PLI) scheme with an outlay of ₹18,000 crore to promote manufacturing, export and storage of lithium-ion cells.

 “Unless the chemistry of the battery changes and the costs come down, or you find a material that isn’t anybody’s monopoly, we can’t talk of electrification in the country,” Bhargava adds. “You have an option in hydrogen.” Finance Minister Nirmala Sitharaman announced in her Budget speech in February that India will launch its National Hydrogen Energy Mission (NHEM) in 2021-22, although not much has moved on that front.

 “EVs have evolved over the last 10 years or so in India,” adds Sharma. “Today there are options for high voltage vehicles, but this is not an ‘inflection point’ at least for electric cars for personal use yet. EV adoption in India will be led by commercial vehicles, primarily NEVs such as 3Ws, followed by 2Ws and mostly in the B2B space. The unit economics make it a compelling case of last-mile delivery and many other equipment manufacturers such as Mahindra & Mahindra are cognisant of the same and have committed resources accordingly.”

 For long, India has been trying to provide incentives to help push for a faster adoption of EVs. That included the much celebrated FAME scheme, launched by Prime Minister Narendra Modi in 2015, to incentivise the production and promotion of EVs. It is currently in its second phase—which runs until March 2022 with an outlay of ₹10,000 crore. The scheme is only for the shared mobility segment, but it has played a crucial role in improving the overall EV landscape.

 Around the same time, the government had roped in Energy Efficiency Services Limited, a public sector company formed in collaboration with four public sector entities to procure 10,000 EVs for government organisations. The decision to offer supportive government policies and financial incentives was based on models adopted in countries such as China and Norway, which had seen a large adoption of EVs. From 2013 to 2017, total subsidies on EVs amounted to about RMB 50 billion ($7 billion) in China.

“Factors which may accelerate adoption of EVs are mobility regulations, economic situation, energy policy, environmental and climate change mandates, import policy and R&D and manufacturing,” adds Sharma. “Consumers have to have a significant intrinsic and extrinsic motivation to shift to EVs. This can’t be just incentive-driven but rather environment-driven. But that’s going to take time.”

 According to Bhargava, that means while there might be some traction in the upper end of the market, vehicles in the Rs5 lakh to Rs8 lakh range will not see any possibility of adopting EVs. “It’s not that simple as the government and the industry thought,” he says.