SMEV DEMAD FOR RS 20000 CRORE TO NURTURE ELECTRIC VEHICLES IN INDIA
Published Date | 2019 January 18
The Society of Manufacturers of Electric Vehicles (SMEV) has called for a stable and long-term government policy to target at least one million EVs and time-bound implementation which will promulgate the demand of EV Market in India.India: Society of Manufacturers of Electric Vehicles (SMEV) makers of Electric vehicle (EV) body sought an allocation of Rs 20,000 crore for promoting EVs in India over next two years and urged the government to impose a "Notional Green Cess" on conventional vehicles in the upcoming interim Budget to fund the drive. SMEV expects FAME 2 must be announced with a 6-year plan and time-bound implementation and target at least 1 million Electric Vehicles in India’s top 10 most polluted cities. SMEV recommends a notional green cess on all IC (internal combustion) engine vehicles to create this corpus rather than dipping into exchequer. According to Sohinder Gill, director general, SMEV, “Electric mobility needs stable and long-term policy support, a concentrated dose of customer incentives and massive awareness campaign to reach a target of 30% EVs by 2030. Ayush Lohia, CEO of Lohia Auto seeking the extension of FAME scheme by minimum of 10 years, therefore making it long term and GST on all categories of electric vehicles, including batteries, should not exceed 5% with input tax credit availability. The government should give more thrust on e-mobility under the smart city project which is missing, currently. The interim Budget is expected to be presented on February 1. According to BlueWeave Consulting, Electric vehicles (EVs) are the inevitable future of the automotive industry. The major factors behind the growth of electric vehicle sales are government support in the form of grants, subsidies, and tax rebates, increasing environmental consumer awareness, improving charging infrastructure, and increasing vehicle range. Due to which several governments’ regulations, particularly pollution prone countries have initiated supportive policies and programs to produce and adopt electric vehicles, which is surging the demand for global electric vehicles battery market over the forecast span. According to the recently published report by BlueWeave Consulting on “India Electric Two-Wheeler Market, by Vehicle Type (Scooter and Motorcycle), by Battery type (Lead Acid Battery, Lithium-ion Battery), by Voltage (36V, 48V, 60V, and 72V), By Technology (Plug-in and Battery), by Region; Size and Forecast, 2014-2025,” India Electric Two-Wheeler market is expected to grow with a CAGR over 40% during the forecast period 2018-2025, owing to strict emission norms and regulations, government incentives, and increasing environmental awareness. The emissions from conventional gasoline based vehicles cause environmental degradation. According to the recently published report by BlueWeave Consulting on “India Electric Three-Wheeler Market, by Vehicle Type (Passenger Carrier and Load Carrier), by battery Type (Lead Acid Battery, Lithium-ion Battery and Nickel Metal Hydride Battery), by Battery Capacity (101Ah), by Region; Size and Forecast, 2014-2025,” India Electric Three-Wheeler market is expected to grow with a CAGR over 15% during the forecast period 2018-2025. The market growth is majorly driven by government incentives and environmental policies, and declining battery prices. In order to address the issue of degrading air quality, the Indian government launched the Faster Adoption and Manufacturing of (Hybrid & Electric Vehicles (FAME) scheme in 2015, in addition to implementing environmental regulations on conventional gasoline-based vehicles. According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Charging Station Market, By Product Type, By Installation Type, By Suppliers Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025,” The global electric vehicle (EV) charging station market is expected to grow over a CAGR of 29% during 2018-2025 in terms of value. Government supporting and introducing new initiatives to drive the growth of Electric Vehicle and Electric Vehicle charging station industry is driving the growth of the market. In addition, the price of fuel is constantly increasing which is urging the people to look for better and other energy efficient alternative. Oil price will increase over the forecast period which will accelerate the market demand for electric vehicles and EVs charging stations. These factors are constantly accelerating the growth of the electric vehicle (EV) charging station market globally. According to the recently published report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market by Propulsion type (BEV, HEV, PHEV, FCEV), by Vehicle type (Bus, Truck, Van, Others), by Component (Motor, Battery, Others) – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024,” The Global Electric Commercial Vehicles market is expected to grow at a CAGR over 13.0% during the forecast period in terms of value. The market is expected to reach over USD149, 316 Mn by 2024, supported by government subsidies and tax rebates for commercial electrical vehicles. Need for fuel-efficient and emission-free vehicles and the increasing demand for electric commercial vehicle such as electric truck in the logistics industry to minimize the additional liability of fuel expenses. Innovations in EV battery capacity, which will enable electric commercial vehicle to carry heavy loads over longer range, can create new revenue generation opportunities.