Lok Sabha Question No. 3420 (UNSTARRED), answered on 2021-03-16
Subject: Demand for Electric Vehicles
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: Rakesh Singh

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 3420

ANSWERED ON 16.03.2021

## DEMAND FOR ELECTRIC VEHICLES

## 3420. SHRI RAKESH SINGH:

Will  the  Minister  of  HEAVY  INDUSTRIES  AND  PUBLIC  ENTERPRISES भारी उद्योग एवं ऱोक उद्यम मंत्री be pleased to state:

- (a) whether the demand for electric vehicles has increased in the country;
- (b) if so, the details thereof;
- (c) whether it s a fact that the price of e-vehicles is higher in comparison to other vehicles and if so, the details thereof;
- (d) whether the Government has taken any measures to decrease the prices of e-vehicles and to promote evehicles; and
- (e) if so, the details thereof?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARJUN RAM MEGHWAL)

- (a) & (b): Yes, Sir. The demand for electric vehicles has increased in the country in the last  three  years. The number of registered electric vehicles as per e-vahan portal during the last three years (i.e. 2017-18, 2018-19 & 2019-20) are as under:
- (c) to (e): The  upfront  cost  of  electric  vehicles  is  higher  than  the  Internal  Combustion Engine (ICE) vehicle. However, the operational cost of electric vehicles is lower than the ICE vehicles. Further, electric vehicles are being supported by the way of demand incentives under FAME India Scheme phase II to reduce the cost difference between the electric vehicles and ICE vehicles .

| Sl. No.       | Year          | No. of electric vehicles sold   |
|---------------|---------------|---------------------------------|
| 1.            | 2017-18       | 69,012                          |
| 2.            | 2018-19       | 143,358                         |
| 3.            | 2019-20       | 167,041                         |
| Total 379,411 | Total 379,411 | Total 379,411                   |

Further, following initiatives have also been taken up by the Government of India for promotion of electric vehicles in the country -

- (i) GST  on  electric  vehicles  has  been  reduced  from  12%  to  5%;  GST  on  chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
- (ii) Ministry  of  Power  has  allowed  sale  of  electricity  as  'service'  for  charging  of  electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure.

(iii) The  Government,  vide  S.O.  5333(E)  dated  18th  October,  2018,  has  also  granted exemption  to  the  Battery  Operated  Transport  Vehicles  and  Transport  Vehicles  running  on Ethanol and Methanol fuels from the requirements of permit.

(iv) In  the  budget  of  2019-20,  the  Hon'ble  Finance  Minister  announced  provision  of additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles.

(v) In  order  to  promote  electric  vehicles,  the  Government  has  notified  for  retro-fitment  of hybrid electric system or electric kit to vehicles and has specified the type approval procedure of electric hybrid vehicles.

(vi) The Ministry of Road Transport & Highways has notified certain specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.

(vii) Ministry of Housing and Urban Affairs has made amendment in the Urban and Regional Development  Plans  Formulation  and  Implementation  (URDPFI)  guidelines  to  provide  for electric vehicle charging stations in private and commercial buildings.

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