The Uttar Pradesh government has agreed to offer some perks to EV customers to promote electric vehicles. According to the announcement, starting on October 14, 2022, the government would waive road tax and registration expenses for purchases of electric vehicles. According to the government statement, if the purchased electric car is produced within the state, the exemption will be valid for five years. The government has given instructions to the RTOs of each district to make sure that the orders are carried out right away.
The Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022 stipulates that from October 14, 2022, to October 13, 2025, all-electric vehicles (EVs) sold and registered in Uttar Pradesh will be entirely exempt from taxes, according to the updated announcement made by Principal Secretary L. Venkateshwarlu.
Also, from October 14, 2025, to October 13, 2027, the fourth and fifth years of the Electric Vehicle Policy’s implementation period, which was announced on October 14, 2022, a 100% rebate will be provided on EVs produced, marketed, and registered in the state.
According to the government, all vehicles that run on batteries, ultracapacitors, or fuel cells will be considered electric vehicles. This category includes all two, three, and four-wheeled vehicles, as well as fuel cell electric cars, strong hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV) (FCEV).
This decision will help the 3,997 EV owners in Agra who have assessed the registration fee between October 14, 2022, and now. 11340 electric vehicles (EVs) are currently registered with the Agra Divisional Transport Office (RTO), of which 3997 have been bought since October 14, 2022. 30 automobiles, 437 e-rickshaws, and the rest two-wheelers are included in this figure (EVs). The state of Uttar Pradesh has added an exemption to the central government’s subsidies for the purchase of electric automobiles.
Relief Measures By The Government
In total, the relief measures from the Central and State Governments will reduce the cost of two-wheelers by between $15,000 and $20,000 and the cost of cars by up to $1 lakh. Due to the government’s decision, the rates for EV registration in Delhi and Uttar Pradesh will no longer differ from one another. A subsidy of up to 5,000 will be given to the first 2 lakh electric two-wheelers, up to 12,000 will be given to the first 50,000 electric three-wheelers, and up to 1 lakh will be given to each of the first 25,000 electric four-wheelers.
In addition, the state will provide a subsidy of up to Rs. 20 lakh for each of the first 400 buses purchased. To acquire each vehicle up to 100,000, a 10% factory price discount will be provided to a maximum of 1000 e-goods carriers.
Also, the government would encourage employees to buy electric cars. Also, the state government would let the workers get paid in advance for this. CM Adityanath also announced the creation of an app called UP Rahi, which would enable users to make online reservations while relaxing at home, to modernize the state’s transportation infrastructure.
According to a government press release, this programme allows users to pre-book bus excursions from the comfort of their homes and enables cashless services. According to the press release, users of the app will be able to provide comments on concerns relating to their trip, the conductor’s behaviour, the state of the bus, and other relevant matters.
Thanks to the adoption of this software, thousands of state bus passengers will be able to travel without incident going forward. The software is available for download on the Google Play store for travelers. In addition to English, the app is also available in Hindi, according to the press release.
With the use of this app, users will be able to buy tickets online, according to UPSRTC General Manager IT Yuzvendra Kumar. But, users must register before using the programme after downloading it. Users can use the whole functionality of the app once they have registered.
Growth Of EVs Over The Years
Over the past ten years, the worldwide Electric Vehicle (EV) market has shown substantial growth. China has been the global leader in EVs because of major improvements in battery production capacity, charging infrastructure, and innovative EV model designs. China’s enormous manufacturing capacity allows for the production of EVs at a slower pace. When it comes to the market penetration of electric vehicles, India, on the other hand, lags behind other regions.
There is still a lot to be done in terms of model types, charging infrastructure, and financial incentives provided to EV producers. India currently dominates the 2W and 3W markets and is among the top five in both passenger and commercial vehicle sales (CV). Despite this, the country’s EV share is rather small. Buses powered by electricity are becoming more commonplace in daily transit. 400 or more electric buses were sold during FY2021. and it is predicted that by FY2022, this will have increased to about 900.
The Indian government reaffirmed its support for the EV industry in its budget for 2021–2022. To enhance the market share of EVs in India, the government put up a number of reforms.
Government Initiatives and Incentives in India for EVs
The Indian government regularly shows that it is committed to helping the country become a global leader in the EV sector. In order to increase customer demand for electric vehicles and to incentivize automakers to engage in the R&D of electric vehicles and related infrastructure, the government has implemented a number of programmes and incentives.
The Indian government’s current initiatives include FAME-II, PLI SCHEME, Battery Switching Policy, Special Electric Mobility Zone, and Tax Reduction on EVs. The following is a list of the government’s initiatives and incentives for electric vehicles in India.
To decrease the use of gasoline and diesel vehicles, the Indian government established the FAME India project on April 1, 2015. This programme was crucial to India’s adoption of electric mobility. The FAME India Plan seeks to encourage all vehicle kinds. The Fame India Plan has four main areas of focus: technology demand, pilot projects, technology development, and infrastructure for charging.
With a budget of Rs 10,000 crore, the FAME II scheme was launched in April 2019 to support 500,000 e-two-wheelers, 5,000 e-three-wheelers, 7,000 e-buses, and 55,000 e-passenger vehicles. The goal was to encourage wider EV usage in India. In 2022, the plan was intended to be completed. But recently, the Government of India has decided to extend the FAME-II scheme till 31 March 2024 in the budget for FY2022-23.
The Department of Heavy Industries introduced the Production Linked Incentive for Advanced Chemistry Cell Battery Storage in June 2021. (PLI-ACC Scheme). The organization’s objective is to persuade both domestic and foreign investors to make investments in India’s Giga scale ACC manufacturing plants. One of the thirteen programmes approved by the Union Government to support the Prime Minister’s vision of “Atmanirbhar Bharat” is the PLI-ACC Scheme.
Battery Exchange Procedures
According to the finance minister, the administration plans to implement a battery-swapping policy. This programme will harmonise the battery requirements for EVs used throughout India. Although replacing a depleted battery with a fully charged one is a more practical choice than on-the-spot recharging, which can take hours, the legislation will aid in promoting EVs in time-sensitive service industries like delivery and inter-city transit. As a result, interoperability will be simple.
Reduced Taxes for Electric Vehicles
A proposal to reduce customs charges on nickel concentrates, nickel oxide, and ferronickel from 5% to 0%, 10%, and 2.5%, respectively, is included in the budget. An essential component of lithium-ion batteries, which are used in electric vehicles, is nickel manganese cobalt (NMC) (EVs). These ores are scarce in India, where battery production is heavily reliant on them. Hence, the majority of nickel alloys are imported. Local manufacturers of EV batteries will reduce production costs thanks to the reduction in customs taxes. A plan to cut the customs tariff on motor parts from 10% to 7.5% will aid in bringing down the overall cost of EVs.
Customers do not need to worry while changing their batteries or be concerned about the configuration of new batteries being installed if all the batteries are of the same configuration for all EVs in the same category. Battery swapping is anticipated to be accepted in commercial applications like 2W and 3W automobiles and will speed up penetration in these markets if done well.
edited and proofread by nikita sharma