Lok Sabha Question No. 836 (UNSTARRED), answered on 2023-07-25
Subject: Subsidy for Electric Vehicles
Ministry: HEAVY INDUSTRIES
Asked by: S. Ramalingam

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 836

ANSWERED ON 25.07.2023

## SUBSIDY FOR ELECTRIC VEHICLES

## 836. SHRI RAMALINGAM S.:

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

- (a) whether the Government has reduced the Electric Vehicle (EV) subsidy per unit to 15% of the ex-factory price from 40% and if so, the reasons for reducing such subsidy per unit;
- (b) whether the Government has conducted any prior consultation with other stakeholders in arriving at the decision of reducing the subsidy per unit to 15% and if so, the details thereof;
- (c) whether the Government has taken any steps to reduce the rise in per unit cost for consumer which may lead to a major decline in EV adoption thereby impacting the entire industry and if so, the details thereof;
- (d) whether the Government has taken any steps to reduce the significant drop in retail sales figure for electric two wheeler sector in the country; and
- (e) the details on retail sales of electric two wheelers during the last six months, State-wise?

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

(a) & (b): Yes, Sir.  The government has reduced the Electric Vehicle (EV) subsidy per unit to 15% of the ex-factory price from 40% under FAME India Scheme Phase-II keeping in mind the increasing penetration of the EV market.  This has been implemented after stakeholder's consultation  meetings  with  OEMs  of  e-2W  on  16.05.2023  and  the  approval  of  the  Project Implementation and Sanctioning Committee (PISC) for FAME India Scheme Phase-II.

- (c) & (d): Sir, following steps have been taken by the Government of India to reduce the cost of electric/ Hybrid vehicles and wider adoption of EVs: -
- i. Faster  Adoption  and  Manufacturing  of  Hybrid  and  Electric  Vehicles  in  India  (FAME India): The Government notified Phase-II of FAME India Scheme initially for a period of five years commencing from 1 st April, 2019 with a total budgetary support of Rs. 10,000 crore.  Under FAME-India Scheme phase-II, incentives are provided to buyers of electric vehicles in the form of an upfront reduction in the purchase price of electric vehicles.
- ii. Production Linked Incentive (PLI) Scheme for Automotive Sector: The Government on 15 th Sep., 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs. 25,938 crores to support domestic manufacturing of vehicles. Electric vehicles are covered under this PLI scheme.

- iii. PLI Scheme for Advanced Chemistry Cell (ACC): The Government on 12 th  May, 2021 approved PLI Scheme for manufacturing of ACC in the country with a budgetary outlay of  Rs.  18,100  crore.    The  scheme  envisages  to  establish  a  competitive  ACC  battery manufacturing set up in the country for 50 GWh.  Additionally, 5GWh of niche ACC technologies is also covered under the Scheme.
- 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.

(e): Sir, as per the e-vahan portal (Ministry of Road Transport and Highways), the detailed list of registered electric two wheelers during the last six months, State-wise is at ANNEXURE.

## ANNEXURE

## State Wise data of Electric Two-Wheeler Registered during the last six months, as per Vahan4 in the year 2023 till date

| Sr. No.     | State Name              | Jan                                     | Feb.                                    | Mar.                                    | Apr.                                    | May.                                    | Jun.                                    | Jul(till 21.07.2023)   | Grand Total   |
|-------------|-------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|------------------------|---------------|
| 1           | Andaman &Nicobar Island | 0                                       | 0                                       | 1                                       | 0                                       | 0                                       | 0                                       | 0                      | 1             |
| 2           | Andhra Pradesh          | 2,684                                   | 2,908                                   | 3,518                                   | 3,527                                   | 4,374                                   | 1,004                                   | 920                    | 18,935        |
| 3           | Arunachal Pradesh       | 0                                       | 0                                       | 0                                       | 0                                       | 1                                       | 0                                       | 0                      | 1             |
| 4           | Assam                   | 142                                     | 190                                     | 221                                     | 178                                     | 282                                     | 177                                     | 116                    | 1,306         |
| 5           | Bihar                   | 987                                     | 911                                     | 1,302                                   | 971                                     | 1,537                                   | 520                                     | 411                    | 6,639         |
| 6           | Chandigarh              | 172                                     | 216                                     | 362                                     | 126                                     | 209                                     | 135                                     | 76                     | 1,296         |
| 7           | Chhattisgarh            | 1,923                                   | 1,874                                   | 2,189                                   | 1,560                                   | 2,515                                   | 1,252                                   | 986                    | 12,299        |
| 8           | Delhi                   | 3,285                                   | 2,800                                   | 3,782                                   | 2,738                                   | 4,977                                   | 1,789                                   | 1,278                  | 20,649        |
| 9           | Goa                     | 662                                     | 628                                     | 837                                     | 698                                     | 874                                     | 534                                     | 388                    | 4,621         |
| 10          | Gujarat                 | 5,873                                   | 6,759                                   | 7,791                                   | 8,268                                   | 9,624                                   | 4,019                                   | 3,813                  | 46,147        |
| 11          | Haryana                 | 706                                     | 702                                     | 714                                     | 802                                     | 1,053                                   | 408                                     | 95                     | 4,480         |
| 12          | Himachal Pradesh        | 78                                      | 65                                      | 91                                      | 96                                      | 118                                     | 59                                      | 27                     | 534           |
| 13          | Jammu and Kashmir       | 115                                     | 147                                     | 198                                     | 212                                     | 258                                     | 166                                     | 69                     | 1,165         |
| 14          | Jharkhand               | 655                                     | 652                                     | 797                                     | 682                                     | 839                                     | 390                                     | 256                    | 4,271         |
| 15          | Karnataka               | 9,969                                   |                                         | 10,26813,067                            | 9,714                                   | 17,329                                  | 7,786                                   | 5,822                  | 73,955        |
| 16          | Kerala                  | 4,668                                   | 5,559                                   | 6,773                                   | 4,661                                   | 7,387                                   | 4,026                                   | 2,467                  | 35,541        |
| 17          | Ladakh                  | 1                                       | 0                                       | 0                                       | 0                                       | 14                                      | 2                                       | 1                      | 18            |
| 18          | Madhya Pradesh          | 2,443                                   | 2,358                                   | 3,214                                   | 1,958                                   | 3,949                                   | 1,695                                   | 1,294                  | 16,911        |
| 19          | Maharashtra             | 13,802                                  |                                         | 12,07117,07812,260                      |                                         | 20,587                                  | 8,454                                   | 6,593                  | 90,845        |
| 20          | Manipur                 | 7                                       | 14                                      | 3                                       | 15                                      | 10                                      | 4                                       | 6                      | 59            |
| 21          | Meghalaya               | 4                                       | 2                                       | 1                                       | 3                                       | 7                                       | 1                                       | 19                     | 37            |
| 22          | Mizoram                 | 10                                      | 9                                       | 10                                      | 8                                       | 14                                      | 4                                       | 6                      | 61            |
| 23          | Nagaland                | 0                                       | 0                                       | 0                                       | 0                                       | 0                                       | 0                                       | 1                      | 1             |
| 24          | Odisha                  | 2,533                                   | 2,551                                   | 3,269                                   | 2,847                                   | 3,727                                   | 2,131                                   | 1,685                  | 18,743        |
| 25          | Puducherry              | 197                                     | 177                                     | 261                                     | 157                                     | 382                                     | 140                                     | 113                    | 1,427         |
| 26          | Punjab                  | 590                                     | 609                                     | 805                                     | 376                                     | 1,181                                   | 534                                     | 281                    | 4,376         |
| 27          | Rajasthan               | 4,624                                   | 4,661                                   | 6,376                                   | 3,912                                   | 6,910                                   | 3,260                                   | 2,462                  | 32,205        |
| 28          | Tamil Nadu              | 5,506                                   | 6,701                                   | 8,388                                   | 6,509                                   | 10,330                                  | 4,719                                   | 3,772                  | 45,925        |
| 29          | Tripura                 | 8                                       | 20                                      | 23                                      | 19                                      | 65                                      | 8                                       | 5                      | 148           |
| 30          | UT of DNH and DD        | 9                                       | 16                                      | 5                                       | 5                                       | 4                                       | 5                                       | 3                      | 47            |
| 31          | Uttar Pradesh           | 1,952                                   | 1,968                                   | 3,561                                   | 3,091                                   | 4,712                                   | 1,946                                   | 1,429                  | 18,659        |
| 32          | Uttarakhand             | 447                                     | 426                                     | 587                                     | 524                                     | 682                                     | 324                                     | 257                    | 3,247         |
| 33          | West Bengal             | 632                                     | 814                                     | 1,103                                   | 918                                     | 1,508                                   | 462                                     | 340                    | 5,777         |
| Grand Total | Grand Total             | 64,684 66,07686,32766,8351,05,45945,954 | 64,684 66,07686,32766,8351,05,45945,954 | 64,684 66,07686,32766,8351,05,45945,954 | 64,684 66,07686,32766,8351,05,45945,954 | 64,684 66,07686,32766,8351,05,45945,954 | 64,684 66,07686,32766,8351,05,45945,954 | 34,991                 | 4,70,326      |

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