Abstract:

To save mankind from the impending disaster of global warming, the transition of transport away from fossil fuels is critical. The International Energy Agency (IEA) Report of last year on the feasible pathway to net zero by 2050 and restricting global warming to 1.5 degrees envisages the complete switchover in the world to EVs by 2035 and of electricity systems phasing out fossil fuel use around the same time. India has been quite forward looking on EVs. A comprehensive range of incentives and tax breaks are in place for the promotion of the use of EVs. EVs are levied only 5% GST making the price to the buyer of an EV substantially lower. Under the FAME (Faster Adoption of Manufacturing of Electric and Hybrid Vehicles) II scheme, a 1.5 lakh Rupees subsidy is being provided for the purchase of a car and 40% of the purchase price of two wheelers. In addition, state governments are giving their own incentives which range from actual subsidies on purchase of EVs to road tax exemptions. FAME II also provides financial support for the setting up of EV charging stations. To save mankind from the impending disaster of global warming, the transition of transport away from fossil fuels is critical. The International Energy Agency (IEA) Report of last year on the feasible pathway to net zero by 2050 and restricting global warming to 1.5 degrees envisages the complete switchover in the world to EVs by 2035 and of electricity systems phasing out fossil fuel use around the same time. India has been quite forward looking on EVs. A comprehensive range of incentives and tax breaks are in place for the promotion of the use of EVs. EVs are levied only 5% GST making the price to the buyer of an EV substantially lower. Under the FAME (Faster Adoption of Manufacturing of Electric and Hybrid Vehicles) II scheme, a 1.5 lakh Rupees subsidy is being provided for the purchase of a car and 40% of the purchase price of two wheelers. In addition, state governments are giving their own incentives which range from actual subsidies on purchase of EVs to road tax exemptions. FAME II also provides financial support for the setting up of EV charging stations.