Market Trends of india electric vehicle Industry
This section covers the major market trends shaping the India Electric Vehicle Market according to our research experts:
Commercial Vehicles is the largest segment by Vehicle Type.
- The FAME program provides a discount on the retail value of passenger cars. These subsidies range from INR 11,000 (USD 165) to INR 24,000 (USD 360) for light hybrids, INR 59,000 (USD 885) to INR 71,000 (USD 1,065) for strong hybrids, and INR 60,000 (USD 900) to INR 1,34,000 for electric vehicles (USD 2,010). Two-wheelers, three-wheelers, buses, light commercial vehicles, and retrofit kits can all receive subsidies.
- The FAME scheme's subsidy is not the only incentive program that influences the Indian market for hybrid and electric automobiles. Along with FAME, the Central Government of India and some state governments, including the Government of the National Capital Territory of Delhi (NCT of Delhi), offer tax advantages that give hybrid and electric vehicles a leg up on conventional automobiles. For instance, the Central Government of India imposes flat excise rates of 12.5% and 6% on hybrid and electric vehicles, while traditional car technologies are subject to excise duties of up to 30% (based on vehicle dimensions and engine capacity). The Central Government of India included a tax on the infrastructure for conventional motor cars in the national FY 2016–17 budget, which ranged from 1% to 4% of the cost of the vehicle.
- Hybrid and electric vehicles were exempt from this tax. In its FY 2016–17 budget, the NCT of Delhi, which is the state government, lowered its state Value Added Tax (VAT) rate from 12.5% for conventional automobiles to 5% for hybrid and electric vehicles. Some or all of these advantages are being passed on to consumers by manufacturers, which is expected to boost sales of hybrid and electric vehicles.
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