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Transforming Transformation: The Emergence Of EV Vehicles

India now has the fifth-largest economy in the world and is working hard to get up to the top three. To accomplish this challenging objective, the nation must become Aatmanirbhar (Self-reliant) on several fronts. The automobile sector is without a doubt one of the numerous sectors and industries where India is leaving its powerful mark and footprints throughout this journey of Amrit Kaal or the Golden Era.

India is a vast country with a growing and expanding population which shows that the demand for the automobile sector will continue to rise in the next decade as well as in the next century. The automobile sector plays a crucial and dominant role in the development of the nation as well as the economic progress of the nation.

The importance of the sector can be sensed by its contribution to various sectors of the Indian Economy. The dominance of the sector can be felt by the statistics which show that India is the third largest auto-producing nation in the world after China and the USA. It is worth $ 226 million and contributes 8% of total country exports and accounts for 7.1% of Indian GDP. The sector also employs more than 19 million people in the nation which shows that the sector acts as a major employment role in the nation.

History Of Development Of EV

Many people deserve appreciation for the usual invention of electric automobiles. The first electric motor was created in 1828 by Anyos Jedlik, who then utilized it to create the first miniature electric vehicle. Between 1832 and 1839, Scottish inventor Robert Anderson also developed a crude electric car.

The first electric vehicle, a three-wheeler called the VIKRAM SAFA, was created by Scooter's India Pvt Ltd in 1996. The industry-manufactured automobiles were 400 in total. BHEL also created a well-liked 18-seater electric bus in 2000. After that, more than 200 electric cars were built and placed into operation in Delhi.

In 2007, Hero Cycles unveiled a series of bikes in association with ULTRA Motor, a company located in the UK. They also manufacture and sell their products. A precedent for efficient and ecologically friendly transportation was also established by Etrio in 2017, which received roughly $3 million from HNIs and set out to transform current gasoline-powered commercial vehicles into electric models.

The market was controlled by the well-liked electric rickshaws. Over 500000 e-rickshaws were sold in India during the 2016�17 fiscal year.

Reasons For Adoption Of EV

The EV has been developed due to the increasing pollution level (release of Carbon Dioxide, methane, and Nitrous oxide) and consumption of fuel energy (India is the third largest importer of natural gas which accounts for 55% and 85%of crude oil it processes), high fuel prices, ongoing maintenance expenses and burdensome.

India's consumption level of crude oil each day is currently 5 million barrels, and it is also rising by 3%, which is more than the 1% worldwide average, according to a report by the Ministry of Petroleum and Natural Gas. According to the report of OPEC in the year of 2018, there were reportedly 1.73 trillion barrels of oil in the globe in 2018. With an average worldwide oil usage of 95 million barrels per day, there is enough oil to last another 50 years. But with changing times the consumption level of crude oil is expected to end up before the estimated time. So there is a need for an alternative mode for running vehicles.

On the other hand, a sizeable amount of the total cost of ownership is made up of EV operation and maintenance expenses. Oil is still a major source of energy and is required for transportation, which leads to a variety of issues. With an electric vehicle, however, everyone can travel more effectively and sustainably. It is already widely acknowledged that EV purchasers spend far less on fuel/energy and maintenance since EVs have fewer mechanical components than conventional engines, which makes them cheaper to operate.

The parts that might go down and need maintenance are quite a few in EVs. As a consequence, replacing the engine oil is not a worry, which makes maintaining electric automobiles simpler and less expensive. But thanks to EVs, anybody can travel more efficiently and sustainably by driving one. The future need for millions of barrels of oil will decline as the number of electric vehicles on the road rises.

Sales Of EV Vehicles In The Last 10 Years

The data is taken from Vahan Sewa which registers the data of each vehicle throughout India:
Year (Accounting Year) Volume Of Sales
2014 2389
2015 7800
2016 49,848
2017 87, 420
2018 1,30,253
2019 1,66,823
2020 1,24,647
2021 3,31,463
2022 10,24,796
2023 8,82,884

Benefits Of Ev Adoption

  1. Environmentally friendly: There are no emissions or gas exhaust since electric automobiles don't burn gasoline. Because fossil fuel-powered cars significantly contribute to the accumulation of hazardous gases in the atmosphere, driving an electric automobile can help contribute to a cleaner world.
  2. Renewable Energy: In contrast to conventional automobiles, which burn fossil fuels and deplete the world's supplies of natural resources, electric vehicles are powered by renewable energy.
  3. Smoother motion and less noise: An electric car is significantly more comfortable to drive. Since they don't have any components that move quickly, they are quieter and produce less noise.
  4. Cost-effective: Fuels like gasoline and diesel, which frequently see price rises, are far more expensive than electricity. The cost of battery recharging is reasonable when solar energy is used at home.
  5. Low maintenance: Since there are fewer moving components in electric cars than in traditional ones, there is less wear and tear. Repairs are also simpler and less expensive than combustion engines.
  6. Government support: Governments all around the world have offered tax breaks as part of a green campaign to persuade people to use electric cars.

Government Initiatives

The Fame India program is an incentive program that promotes the use of electric and hybrid automobiles. FAME India stands for "Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India" in its complete form.

Subsidies are given as this incentive to electric car producers and infrastructure suppliers. The Ministry of Heavy Industries and Public Enterprises introduced the Fame India Plan, which is a component of the National Electric Mobility Mission Plan.

There are two phases to the Fame India Scheme. These include:
  1. Phase I: Fame India Scheme's initial phase began in 2015 and ran through 31st March 2019.
  2. Phase II: The second phase of this program began in April 2019 and will go through March 31, 2022.
The Government has decided to extend the second phase till 31st March 2024.

Objectives of Fame:
This program promotes producers of electric cars and related goods and services to produce more of them in the nation.

Its objective is to lower the amount of air pollution and vehicle emissions in the nation.

This plan also intends to provide a charging infrastructure for electric vehicles.

Additionally, the Fame India Scheme aims to replace 30% of all cars on the road with electric ones by the year 2030.

Reduction Of Taxes On Electric Vehicles

The budget includes a proposal to lower customs duties on nickel oxide from 10% to 0%, nickel ore and concentrates from 5% to 0%, and ferronickel from 15% to 2.5%. Nickel manganese cobalt (NMC) is a crucial component of the lithium-ion batteries used in electric vehicles (EVs).

In India, where battery manufacture depends greatly on them, these ores are in short supply. As a result, imports make up the bulk of nickel alloys. Because of the decrease in customs tariffs, local producers of EV batteries will see lower production costs.

The proposed 10% to 7.5% reduction in the customs levy on motor parts will help lower the overall cost of EVs.

E-Mobility Special Zone

For electric cars, the government plans to create designated mobility zones. Only electric or functionally equivalent cars will be allowed to operate in government-designated locations. China and a few European nations have such laws in place.

The unstated benefit of defined electric mobility zones is that they will lessen traffic caused by individual vehicles. As more individuals opt to drive their EVs in these zones or ride in a shared EV, the market share of EVs increases.

Battery Exchange Procedures

The administration intends to introduce a battery-swapping scheme, as stated by the finance minister. The battery specifications for EVs used throughout India will be unified as a result of this study. The rule will help to promote EVs that are timely service industries like transportation and intercity transit since replacing a low battery with a fully charged one is a more feasible option than on-the-spot recuperating, which may take hours.

The consequence will be easy interoperability. If the batteries are put in all EVs in the identical classification with the same arrangement, customers will have no concerns about having their batteries replaced or the arrangement with the fresh batteries that are being installed.

The manufacturers will gain from the battery-swapping initiative as well. If the standards are in place, it will be simpler to locate machine replacement components. Utilizing economies of scale, this method will also aid battery producers in lowering costs.

People are enthusiastic about electric cars across all ideological, manufacturing, and geographic divides. Future EV sales will surpass trillion-dollar levels while also reducing environmental impact.

The electrification of vehicles in developing nations is crucial for the quick reduction of greenhouse gas emissions due to their extensive usage and popularity. Therefore, government participation is crucial. It is obvious how incentives affect government subsidy programs.

The sale of electric vehicles can be increased in other ways except through government incentives. Changes in consumer and manufacturing behaviour are examples of practical implications. Successful programs demonstrate how governments may aid in tackling these problems. We believe that the efforts taken by the administration would move India closer to a sustainable future.


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