Business News: Sales of electric vehicles increased by 49.25 percent last year

Delhi. According to the information received from the Federation of Automobile Dealers Association (FADA), an increase of 49.25 percent has been recorded in the sales of electric vehicles in the last calendar year i.e. 2023. Following are the category wise details of sales of electric vehicles:
The increase or decrease in interest rates on vehicle loans is linked to the increase/decrease in repo rates by the Reserve Bank of India (RBI). The repo rate is 6.50 percent since the last revision i.e. February 8, 2023. The Ministry of Heavy Industries has formulated the following three schemes to promote and strengthen the adoption of electric vehicles in the country: Faster Adoption and Manufacturing of Hybrid and Electronic Vehicles in India (FAME India): Government has announced a budgetary allocation of Rs 10,000 crore. The assistance has been notified under Phase-II of the FAME India Scheme for a period of five years beginning from April 1, 2019. After this the outlay was increased to Rs 11,500 crore.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry: The government on September 15, 2021, approved the PLI scheme for the motor-vehicle sector with a budgetary outlay of Rs 25,938 crore. In this scheme, incentive amount of up to 18 percent is provided for electronic vehicles.
Production Linked Incentive (PLI) Scheme, ‘National Advanced Chemistry Cell Battery Storage Programme’: The government on May 12, 2021 approved the PLI scheme with a budgetary outlay of Rs 18,100 crore for manufacturing of ACC in the country. Under this scheme, it is envisaged to establish a competitive ACC battery manufacturing system with a capacity of 50 GWh in the country. Also, the scheme also includes 5 GW per hour of innovative technologies.
Additionally, the Government has taken the following initiatives to promote the use of electric vehicles in the country: GST on electric vehicles and GST on chargers/charging stations for electric vehicles has been reduced to 5 percent. The Ministry of Road Transport and Highways has announced giving green license plates to battery-powered vehicles and exempting them from the permit requirements. The Ministry of Road Transport and Highways has issued a notification advising states to exempt electric vehicles from road tax, which will help in reducing the initial cost of electric vehicles.