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The Round Table Conference to Promote Electric Vehicles organized by Ministry of Heavy Industries (MHI) on December 4, 2021 at Goa.
Automobile sector In India
- Automobile sector is a key driver of India’s economic growth and the largest contributor to the manufacturing sector.
- Automobile industry contributes to nearly 6.4 per cent of India’s GDP and 35 per cent of manufacturing GDP and is a leading employment provider.
- India ranks number 1 in the world in two wheelers, 3 wheelers and tractors manufacturing and number 5 in passenger and commercial vehicles manufacturing.
- In value terms Indian automotive industry is ranked number 11 in the world.
- India’s share of advanced automotive components is only 3 per cent compared to 18 per cent globally which is estimated to further grow to 30 per cent by 2030.
- Government of India has reaffirmed its commitment to reduce carbon emissions in the recently concluded COP26 summit.
Policy Initiatives to increase EV penetration
- To give an impetus to manufacturing and adoption of Electric Vehicles and High-Technology Automotive, Ministry of Heavy Industries is executing 3 major schemes with a total outlay of Rs 54,038 crore:
- Faster Adoption and Manufacturing of Electric Vehicles in India II (FAME India II) scheme with an outlay of Rs 10,000 crore to incentivize demand for EVs by providing upfront subsidies and creating EV charging infrastructure.
- National Programme on Advanced Chemistry Cell (ACC)with an outlay of Rs 18,100 crore to incentivize setting up of manufacturing facilities in the country for 50 Giga Watt Hour of ACC and 5 GWh of "Niche" ACC. Total investment of Rs 45,000 crore is envisaged under this scheme.
- Productivity Linked Incentive (PLI) scheme for Automobile and Auto Componentswith an outlay of Rs 25,938 crore to incentivise manufacturing of high technology automobiles and automotive components in India.
