Reasons To Invest

Two-wheeler segment: Expected to be valued at $2 bn by 2025 and penetration of 16% by 2025
Expected to be valued at $0.6 bn by 2025 and penetration of 20% by 2025
Four-wheeler: Expected to be valued at $1.5 bn by 2025 and penetration of 5% by 2025

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FDI Norms

100% FDI is allowed under this sector under the automatic route
100%

FDI Allowed

Did you Know?
The xEV component market is expected to grow to ~$12 billion by 2025

Government Support

Charging Stations

 Charging stations do not need a separate licence under the Electricity Act of 2003 as of April’18

Demand Creation

An outlay of INR 10,000 cr has been made for FAME-II over 3 years till 2022. INR 8597 cr has been set aside for incentives and INR 1000 cr has been kept for charging infrastructure

Production Linked Incentive Scheme on Advanced Chemistry Cell (ACC) (Incentives worth INR 18,100 Crore)

Through this Scheme, the Government of India intends to optimally incentivize potential investors, both domestic and overseas, to set- up Giga-scale ACC manufacturing facilities with emphasis on maximum value addition and quality output and achieving pre committed capacity level within a pre-defined time-period

Charging as a Service:

Ministry of Power has issued a notification clarifying a clause in the Electricity Act 2003 that charging for the purpose of charging an electric vehicle is classified as a service and that no licence is required for this business activity

Major Investors

Product Profiles

2W fleets are likely to shift to EVs much more rapidly.
The electric two-wheeler market in India is emerging on account of increased government policies supporting battery-powered vehicles, the growing awareness toward the environment, increasing petrol prices, and stringent emission norms.
2Ws are expected to be one of the early adopters of electrification. High vehicle utilization and easy home or workplace charging would drive the uptake in the commercial 2W segment.

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FAQ

FAQs

It is said that Electric Vehicles (EV) are also called as Emission Elsewhere Vehicle (EEV). Is it true that EVs are just transferring emission from city area to the place where power is being generated?

The fact is that a typical conventional hatchback has 130-140 gm/km of CO2 emission comparing to an electric vehicle for 100 gm/km when charged by grid and when solar charged, there is ~0 gm/km CO2 emission from an electric vehicle.
Please visit the link for more information.

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What is the Faster Adoption and Manufacturing of hybrid and Electric vehicles (FAME) scheme?

The FAME scheme introduced in April 2012 is to be implemented over a period of 6 years till 2020 to support hybrid/electric vehicles market development and its manufacturing. Under this scheme, demand incentives will be availed by buyers (end users/consumers) upfront at the point of purchase and the same shall be reimbursed by the manufacturers from Department of Heavy Industries, on a monthly basis.

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Which electric vehicles categories are not covered under this FAME scheme?

The following categories are not covered under the FAME scheme:

a) E-Rikshaw
b) Electric Bicycles.
c) Vehicles used for carrying person/goods used within closed premises like factory, airport etc.
d) Electric Chair-cars.

All those vehicles, which are not directly reducing fossil fuel, are not covered under FAME India Scheme.

For more information, please visit the following link.

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Is the FAME incentive applicable along with any other incentives that may be available in my home state for electric vehicles?

The FAME incentive will be available over and above any State level EV incentives being offered by any State/Local bodies.
However for JNNRUM (AMRIT) funded buses, there is a specific incentive amount declared in the Scheme Guidelines.
Please visit the link for more information.

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