Lok Sabha Question No. 293 (STARRED), answered on 2023-03-21
Subject: Cost incurred on Manufacturing of EVs
Ministry: HEAVY INDUSTRIES
Asked by: Unmesh Bhaiyyasaheb Patil, Sujay Radhakrishna Vikhepatil

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA STARRED QUESTION NO. 293 ANSWERED ON 21.03.2023

## COST INCURRED ON MANUFACTURING OF EVs

## *293.  SHRI UNMESH BHAIYYASAHEB PATIL: DR. SUJAY RADHAKRISHNA VIKHE PATIL:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) the  average  cost  incurred  on  manufacturing  of  Electric  Vehicle  (EV)  and  its  associated items during each of the last eight years;
- (b) the details of rise in percentage terms in the cost of production of the EV during the said period, year-wise;
- (c) the reasons for the rise in the import cost of the said products during the last three years;
- (d) whether the Government has proposed any plan to make the EV products more affordable to the public; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF HEAVY INDUSTRIES (DR. MAHENDRA NATH PANDEY)

(a) to (e): A statement is laid on the Table of the House.

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## STATEMENT

STATEMENT REFERRED TO IN REPLY TO  PARTS  (A)  TO  (E)  OF  LOK  SABHA STARRED  QUESTION  NO.  293 FOR  21.03.2023  ASKED  BY SHRI  UNMESH BHAIYYASAHEB  PATIL AND DR. SUJAY RADHAKRISHNA  VIKHE  PATIL REGARDING 'COST INCURRED ON MANUFACTURING OF EVs'.

- (a) to (c): Sir, Ministry of Heavy Industries (MHI) does not maintain the proprietary data of any  of  the  Original  Equipment  Manufacturers  (OEMs)  of  Electric  Vehicles  (EVs)  and  its associated  items.    In  additions,  inputs  have  been  obtained  from  Society  of  Indian  Automobile Manufacturers (SIAM) and they also do not maintain data on cost incurred on manufacturing of EVs.
- (d) & (e): Yes Sir.  In order to promote the use of Electric Vehicles (EV) in the country and to make it more affordable to the public, following steps have been taken:
- (i) The  Government  has  launched  the  Faster  Adoption  and  Manufacturing  of  (Hybrid  &) Electric Vehicles in India (FAME India) Scheme in 2015 and presently, Phase-II of FAME India Scheme is being implemented for a period of 5 years w.e.f. 01 st April, 2019 with a total budgetary support of Rs. 10,000 crores.  This phase of FAME II focuses on supporting electrification of public and shared transportation through subsidies to 7,090 e-Buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.  The details of the scheme may be seen at http://fame2.heavyindustries. gov.in/index.aspx.
- (ii) The Government on 12 th  May 2021 approved Production Linked Incentive (PLI) scheme for manufacturing Advanced Chemistry Cells (ACC) in order to promote their manufacturing in the country.  The budgetary outlay of the scheme is Rs.18,100 crores.  The scheme envisages to establish  a  cumulative  ACC  battery  manufacturing  capacity  of  50  GWh.    The  details  of  the scheme may be seen at https://heavyindustries.gov.in/ UserView/index?mid=2487.
- (iii) EVs  are also incentivized under Production Linked Incentive (PLI) Scheme  for Automobile  and  Auto  Components,  which  was  approved  on  15 th September,  2021  with  a budgetary outlay of Rs.25,938 crores for a period of 5 years.  The details of the scheme may be seen at https://heavyindustries. gov.in/UserView/index?mid=2482.
- (iv) GST on EVs has been reduced from 12% to 5%; GST on chargers/ charging stations for EVs has been reduced from 18% to 5%.
- (v) Ministry of Road Transport & Highways (MoRTH) announced that the battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- (vi) MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of the EVs.

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