Lok Sabha Question No. 127 (STARRED), answered on 2023-12-12
Subject: Production of Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: Sajda Ahmed

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA STARRED QUESTION NO. 127

ANSWERED ON 12.12.2023

## PRODUCTION OF ELECTRIC VEHICLES

## *127. SHRIMATI SAJDA AHMED:

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

- (a) whether  the  Government  has  implemented  any  policy  aimed  at  boosting  domestic production of electric vehicles;
- (b) if so, the details on the production of electric vehicles in the passenger vehicle category that has been enhanced;
- (c) the  steps  taken  by  the  Government  to  attract  both  domestic  and  global  industries  for manufacturing of electric vehicles in the country;
- (d) the strategy adopted by the Government to reduce the cost of electric vehicles; and
- (e) the measures taken by the Government to upskill the workforce involved in manufacturing of electric vehicles?

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

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

## STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF LOK SABHA STARRED QUESTION No. 127 FOR 12.12.2023 ASKED by SHRIMATI SAJDA AHMED REGARDING 'PRODUCTION OF ELECTRIC VEHICLES'.

(a ): Yes,  Government  has  approved  the  Production  Linked  Incentive  (PLI)  Scheme  for Automobile  and  Auto  Components  Industry  in  India  for  enhancing  India's  manufacturing capabilities for Advanced Automotive Technology (AAT) products (including electric vehicles) with a budgetary outlay  of Rs. 25,938 crore.   The PLI proposes financial incentives to boost domestic manufacturing of AAT  products and attract investments in the automotive manufacturing value chain.  Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain.

(b): As  per  the  information  received  from  Society  of  Indian  Automobile  Manufacturers (SIAM), the details on the production of Electric Vehicles in the passenger vehicle category, yearwise (financial year) are given below:

| Category           | Production (In Nos.)   | Production (In Nos.)   | Production (In Nos.)   | Production (In Nos.)   | Production (In Nos.)   |
|--------------------|------------------------|------------------------|------------------------|------------------------|------------------------|
|                    | 2019-20                | 2020-21                | 2021-22                | 2022-23                | Apr-Sep-23             |
| Passenger Vehicles | Passenger Vehicles     | Passenger Vehicles     | Passenger Vehicles     | Passenger Vehicles     | Passenger Vehicles     |
| Electric           | 3,304                  | 5,825                  | 22,355                 | 62,279                 | 49,752                 |

(c) & (d): In order to attract both domestic and global industries for the manufacturing of electric vehicles in the country, following steps have been taken:

(i) The Government 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 https://fame2.heavyindustries.gov.in .

(ii) The Government on 12 th May, 2021 approved Production Linked Incentive (PLI) scheme, 'National Programme on Advanced Chemistry Cells (ACC) Battery Storage' in order to promote 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/pli-scheme-for-nationalprogramme-on-advanced-chemistry-cell-acc-battery-storage.

(iii)  Production  Linked  Incentive  (PLI)  Scheme  for  Automobile  and  Auto  Components  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/pli-schemeautomobile-and-auto-component-industry .

(iv)    GST  on  electric  vehicles  and  chargers/  charging  stations  for  electric  vehicles  has  been reduced to 5%.

- (v) Ministry of Road Transport & Highways (MoRTH) had announced to give green license plates to battery operated vehicles and to exempt from permit requirements.  Further, MoRTH has issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
- (e): Ministry of Heavy Industries under Capital Goods Scheme Phase-II has developed 23 skill training  packages  (Qualification  Packs)  through  Automotive  Skills  Development  Council (ASDC) pertaining to Electric vehicles.

|   Sl. No. | Job Roles                                         |
|-----------|---------------------------------------------------|
|         1 | Automotive Electronic Battery Management Engineer |
|         2 | Electric Vehicle BSS Planning Engineer            |
|         3 | Automotive Flex Fuel Design Engineer              |

Further, MHI through ASDC has trained 4146 professionals in EV related jobs.

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