Lok Sabha Question No. 1402 (UNSTARRED), answered on 2021-12-07
Subject: Manufacturing of Hybrid and Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Pradeep Kumar Singh, Sunil Kumar Singh, Ranjeetsingh Naik Nimbalkar, Sudhakar Tukaram Shrangre

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.1402

ANSWERED ON 07.12.2021

## MANUFACTURING OF HYBRID AND ELECTRIC VEHICLES

## 1402.  SHRI PRADEEP KUMAR SINGH:

SHRI SUNIL KUMAR SINGH:

## SHRI RANJEETSINGH HINDURAO NAIK NIMBALKAR:

## SHRI SUDHAKAR TUKARAM SHRANGARE :

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

- (a) the present status of the manufacturing of Hybrid and Electric Vehicles in the country;
- (b) the reasons for very slow pace of implementation of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme; and
- (c) the  fresh  steps  taken  by  the  Government  to  bring  down  the  cost  of  electric/Hybrid vehicles on par with those with internal combustion engines (ICEs)?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI KRISHAN PAL GURJAR)

- (a): Sir,  the  Ministry  of  Heavy  Industries  formulated  a  Scheme  Faster  Adoption  and Manufacturing of (Hybrid &) Electric  Vehicles  in  India  (FAME  India)  Scheme  in  2015  to promote adoption of electric/ hybrid vehicles (xEVs) in the country. At present, Phase-II of FAME India Scheme is being implemented for a period of 5 years w.e.f. 01st April, 2019 with a total budgetary support of Rs. 10,000 crores. This phase focusses on supporting electrification of public & shared transportation and aims to support, through subsidies, 7090 e-Buses, 5 lakh e-3Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. As on 26 th November, 2021, 49 original equipment manufacturers (OEMs) of e-2W, e-3W & e- 4W have been registered under phase-II of FAME-India Scheme as ANNEXURE.
- (b): The reasons for slow pace in implementation of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme have mainly been:
- (i) High upfront cost of electric vehicle as compared to corresponding IC engine vehicle.
- (ii) Customer anxiety about range of electric vehicle.
- (iii) Limited models available in India compared to internal combustion engine (ICE) vehicles especially in Electric car segment.
- (c) :  The  following  steps  have  been  taken  by  the  Government  bring  down  the  cost  of electric/Hybrid vehicles on par with those with internal combustion engines.
- i. The demand incentive for electric two wheelers has been increased to Rs. 15,000/KWh from Rs. 10,000/KWh with an increase in cap from 20% to 40% of the cost of vehicle from 11 th June, 2021, thus enabling cost of Electric two wheelers at par with that of ICE two wheeler vehicles.
- ii. The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell(ACC) in the country in order to bring down prices of battery in the country. Drop in battery price will result in cost reduction of electric vehicles.
- iii. 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%.
- iv. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
- v. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

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## DETAILS OF ELECTRIC VEHICLE MANUFACTURERS/ ORIGINAL EQUIPMENT MANUFACTURERS (OEMs) REGISTERED UNDER PHASE-II OF FAME INDIA SCHEME

| Category of e- Vehicle         | OEM's Registered    | Vehicle Sold as on 26 th November, 2021   |
|--------------------------------|---------------------|-------------------------------------------|
| e-2W                           | Ather Energy        | 1,36,714                                  |
|                                | Ampere Vehicles     | 1,36,714                                  |
|                                | Okinawa             | 1,36,714                                  |
|                                | Jitendra            | 1,36,714                                  |
|                                | Hero Electric       | 1,36,714                                  |
|                                | Revolt              | 1,36,714                                  |
|                                | Li-ions Elektrik    | 1,36,714                                  |
|                                | Tvs Motor           | 1,36,714                                  |
|                                | Benling India       | 1,36,714                                  |
|                                | Tunwal E-motors     | 1,36,714                                  |
|                                | Bajaj Auto Ltd.     | 1,36,714                                  |
|                                | Kabira Mobility     | 1,36,714                                  |
|                                | LectrixEv Pvt. Ltd. | 1,36,714                                  |
|                                | Microcon i2i        | 1,36,714                                  |
|                                | Ola Electric        | 1,36,714                                  |
|                                | Mahindra Electric   | 1,36,714                                  |
|                                | Kinetic             | 28,304                                    |
|                                | Champion            |                                           |
|                                | Victory Electric    |                                           |
|                                | Y C Electric        |                                           |
|                                | Best Way            |                                           |
|                                | Avon Cycles         |                                           |
|                                | Goenka Electric     |                                           |
|                                | Energy Electric     |                                           |
|                                | Thukral Electric    |                                           |
| e-3W(including e-Rickshaws &e- | Saera Electric      |                                           |
| cart )                         | U P Telelinks       |                                           |
|                                | Atul Auto           |                                           |
|                                | Altigreen           |                                           |
|                                | Dilli Electric      |                                           |
|                                | Piaggio Vehicles    |                                           |
|                                | Speego Vehicles     |                                           |
|                                | Lohia Auto          |                                           |
|                                | Omega Seiki         |                                           |
|                                | Etrio Automobiles   |                                           |

|       | Mlr Auto Balajee Automobile India Pvt Ltd Jitendra GRD Motors Scooters India Continental Engines   |          |
|-------|----------------------------------------------------------------------------------------------------|----------|
|       | Om                                                                                                 |          |
|       | Euler Motors Pvt Ltd                                                                               |          |
|       | Grd Motors                                                                                         |          |
|       | J.s. Auto Pvt Ltd.                                                                                 |          |
|       | ShiganEvoltz Limited                                                                               |          |
|       | Sks Trade                                                                                          |          |
| e-4W  | Tata Motors                                                                                        | 1,817    |
| e-4W  | Mahindra &Mahindra                                                                                 | 1,817    |
| Total | Total                                                                                              | 1,66,835 |

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