This is all about automobile sector.

1. Presentation
on
Union Budget and E-Vehicles
Presented By:
Pawan Kumar Jha
Reg No : 18381039

2. several incentives for developing electric vehicle
industry (EV Industry) in India
• Income tax rebates of up to ₹1.5 lakh to customers on interest paid on loans to buy electric
vehicles, with a total exemption benefit of ₹2.5 lakh over the entire loan period.
• Customs duty exemption on lithium–ion cells, which will help lower the cost of lithium-ion
batteries in India as they are not produced locally.
 This is in addition to the ₹ 10,000 crore allocated for EVs under the FAME II scheme.
• Makers of components such as solar electric charging infrastructure and lithium storage
batteries and other components will be offered investment linked income tax exemptions.
• Proposal to reduce GST rate on electric vehicles from the current 12% to 5%.

3. FAME India Phase II
 Recently the Union cabinet has approved the proposal for implementation of 'Faster Adoption
and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' scheme
for promotion of Electric Mobility in the country.
 The scheme with total outlay of Rs 10000 Crores over the period of three years (2019-20 to
2021-22) will be implemented with effect from 1st April 2019.
 This scheme is the expanded version of the present scheme titled 'FAME India1’ which was
launched on 1st April 2015, with total outlay of Rs. 895 crores.

4. Objectives of FAME India Phase II
 Encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront
Incentive on purchase of Electric vehicles.
 Establish a necessary charging Infrastructure for electric vehicles.
 The scheme will help in addressing the issue of environmental pollution and fuel security.

5. Features of FAME India Phase II
 Emphasis on electrification of the public transportation that includes shared transport.
 In 3-Wheel (W) and 4-Wheel (W) segment incentives will be applicable mainly to vehicles
used for public transport or registered for commercial purposes.
 In the 2-Wheel (W) segment, the focus will be on the private vehicles.
 To encourage advance technologies, the benefits of incentives, will be extended to only those
vehicles which are fitted with advance battery like a Lithium Ion battery and other new
technology batteries.
 The scheme proposes for establishment of charging infrastructure, whereby about 2700
charging stations will be established in metros, other million plus cities, smart cities and
cities of Hilly states across the country so that there will be availability of at least one
charging station in a grid of 3 km x 3 km.
 Establishment of Charging stations are also proposed on major highways connecting major
city clusters.
On such highways, charging stations will be established on both sides of the road at an
interval of about 25 km each.

6. The State of EVs in India
• According to the Economic Survey, the market share of electric cars is only 0.06 % in
India when compared to 2 % in China (world’s largest EV market) and 39 % in
Norway.
• Reasons for lesser market presence of EVs in India are lack of charging
infrastructure and high cost.

7. Steps Taken by Other Countries
 .

8. Cont.…
 In major cities in developed markets such as Frankfurt (Germany) and others, EVs are
given free parking space and in certain parts of cities only such eco-friendly vehicles are
allowed.
 European Union (EU) countries are also trying to evolve into a hub for developing
batteries and other spare parts for electric vehicles through the Strategic Action Plan For
Batteries.
 The continent hosts the countries with the largest base of electric car sales. Norway, for
instance, leads the electric vehicle market—EVs comprised 46% of the total vehicles sold in
the country in the year 2018.
 In the US, California is legislating tough emission norms for vehicles and providing fiscal
incentives for plug-in hybrid and battery electric vehicles.

9. Way Forward
• The government can think of giving a mandate to leading manufacturers that they
should have a certain share of their sales from EVs after a particular time period.
 The NITI-Aayog is considering a policy proposal to ban all internal combustion
engine two-wheelers under 150cc by the year 2025 and three-wheelers by the year
2023.
• Access to fast-charging facilities must be fostered to increase the market share of electric
vehicles. Investments from private players is required for the same.

10. Thank You