The report identifies solutions to direct capital and financing to aid in India’s EV transition. India has signalled that the future of mobility is electric. The economics of vehicle electrification are improving, with
battery pack prices decreasing from about INR75,000/kWh in 2010 to INR13,000/kWh in 2019. Despite a dip in EV sales in 2020, due to the economic effects of COVID-19, confidence in India’s EV future will continue to grow as technology costs decline further, operators gain experience with EVs, and new business models prove their viability.
Yet, many well-documented barriers to EV adoption remain, ranging from technology cost to infrastructure buildout to consumer behaviour. The public and private sectors are diligently working together on solutions to each of these barriers. These solutions include:
- Production-Linked Incentive (PLI) Scheme, with an outlay of INR18,100 crore (USD2.4 billion) for the Advanced Chemistry Cell battery sector
- Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Scheme, Phase II with an outlay of INR1,000 crore (USD135 million) for the deployment of charging infrastructure