The Government wants India to be a 100%, electric vehicle nation by the year 2030. Under the new plan of the government, every car which will get sold in India from 2030 will be electric. Due to the competitive environment in the market, India’s auto industry has become one of the largest in the world. As per the Review Report of Automotive Mission Plan 2016, the turnover of the auto industry is equivalent to 7.1%. The government of India approved the National Mission on Electric Mobility in 2011 and subsequently National Electric Mobility Mission Plan (NEMMP) 2020 which was unveiled in 2013. Department of Heavy Industry has formulated a scheme namely FAME – India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) for implementation with effect from 1st April 2015, which therefore was part of the mission, India’s national mission for electric mobility and faster adoption and manufacturing of electric vehicles (EVs) looks to have received its much-required shot in the arm. Thanks to a few key amendments established by the Department of Heavy Industry (DHI) in June 2021 to the FAME-II Scheme, the EV momentum saw a notable revival and gained pace, especially in the wake of the remarkable slowdown experienced due to the ongoing COVID-19 pandemic.
The overall scheme is proposed to be executed over a period of 6 years, till 2020, wherein it is intended to carry the hybrid/electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period. The scheme has 4 focus areas i.e.
Demand Creation, Charging Infrastructure, Technology Development, and Pilot Projects.
An electric car uses alternate fuel electricity in place of petrol or diesel. There is a developing acceptance for hybrid and electric cars in the country and more and more manufacturers are going for this niche segment with an express objective of lowering the import bill of fuel and running cost of vehicles. Conversion of vehicles to electric vehicles can save fossil fuels worth about $100 bn per year, which in turn prevents the dependence on imported petroleum products which would save the country precious foreign exchange and will also reduce the pollution in cities by 80-90%.
The government’s ambition is to have EV sales accounting for 30% of private cars, 70% for commercial vehicles and 80% for two- and three-wheelers by 2030 as there is an instant need to decarbonise the transport sector. If electric vehicles expand to 40% in the car segments and two-wheeler, and close to 100% for buses by 2030, India would be able to cut crude oil consumption by 156 million tonnes which is worth Rs 3.5 lakh crore.
The government introduced the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 2) scheme, with an expenditure of INR 10K Cr. It aims to give the required push to EVs to curb pollution afflicting major cities and cut down oil imports.