EV and its impact on India

 

With 100 percent FDI possible, new manufacturing hubs, and an increased push to improve charging infrastructure, India's electric vehicle industry is picking up speed. Other growth drivers for the Indian EV industry include federal subsidies and policy favouring deeper discounts for Indian-made electric two-wheelers, as well as a boost for localised ACC battery storage production. Furthermore, in September 2021, Cabinet approved a production-linked incentive scheme for the automotive sector to boost the production of electric vehicles and hydrogen fuel cell vehicles.

The global automotive industry is currently undergoing a paradigm shift as it attempts to transition to alternative/less energy intensive options. India, too, is investing in the transition to electric mobility.

The cost of oil imports, rising pollution, and international commitments to combat global climate change are just a few of the factors driving India's recent policies to accelerate the transition to e-mobility.

 

India's electric vehicle industry: Development Goals

The Indian auto industry is the fifth largest in the world, with a goal of becoming the third largest by 2030. Relying on traditional modes of fuel-intensive mobility to serve a large domestic market will not be sustainable. To address this, federal policymakers are developing a mobility option that is "Shared, Connected, and Electric," with the goal of reaching 100 percent electrification by 2030.

India stands to benefit on multiple fronts by shifting to electric vehicles (EVs): it has a relative abundance of renewable energy resources as well as skilled labour in the technology and manufacturing sectors.

According to an independent study conducted by the CEEW Centre for Energy Finance (CEEW-CEF), the EV market in India will be worth US$206 billion by 2030 if India maintains steady progress toward its ambitious 2030 target. This would necessitate a total investment of more than US$180 billion in vehicle manufacturing and charging infrastructure.

According to a report from the India Energy Storage Alliance (IESA), the Indian EV market will grow at a CAGR of 36% until 2026. During the same time period, the EV battery market is expected to grow at a CAGR of 30%.

Launch of the 'e-AMRIT' portal: A one-stop showroom for electric vehicle information

At the COP26 Summit in Glasgow, India launched the e-AMRIT website – https://www.e-amrit.niti.gov.in/ – which will serve as a one-stop destination for all information on electric vehicles. It addresses key concerns about EV adoption and purchase, such as charging facility locations and EV financing options, as well as investment opportunities, government policies, and available subsidies for drivers and manufacturers.

India's existing EV ecosystem and investment prospects

Regardless of the country's lofty goals, India's electric vehicle market is still in its infancy. Looking at it another way, India has the world's largest untapped market, particularly in the two-wheeler segment. Under the automatic route, 100 percent foreign direct investment is permitted in this sector.

The federal government is also prioritising the transition to clean mobility, as evidenced by recent changes to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) II scheme to make electric two-wheelers more affordable. As of November 25, 2021, approximately 1,65,000 electric vehicles had been supported under phase two of the FAME scheme through a demand incentive totaling approximately INR 5.64 billion (US$75.16 million). Furthermore, approvals have been granted under the scheme for 6,315 electrical buses, 2,877 EV charging stations totaling INR 5 billion (US$66.63 million) in 68 cities across 25 states/Union Territories, and 1,576 charging stations totaling INR 1.08 billion (US$14.39 million) across nine expressways and 16 highways.

Moreover, multiple production-linked incentive schemes aim to establish a local manufacturing ecosystem to support goals related to increased adoption of electric mobility transport. This is hoped to be accomplished by incentivizing new investments in developing indigenous supply chains for key technologies, products, and auto components.

Production-related incentive programmes

The government implemented a Production-Linked Incentive Scheme (PLI) for ACC Battery Storage Manufacturing in May 2021, which will encourage domestic production of such batteries and reduce reliance on imports. This will provide the EV industry with the necessary infrastructure while also significantly lowering the cost of EVs.

The government approved a PLI Scheme for the automobile and drone industries on September 15, 2021, with the goal of incentivizing high-value advanced automotive technology vehicles and products, including 'green automotive manufacturing.'

The PLI Scheme for the auto sector is open to existing automotive companies as well as new investors who are not currently in the automobile or auto component manufacturing business. The scheme is divided into two parts:

i) Champion OEM Incentive Scheme: This is a'sales value linked' scheme that applies to all segments of battery electric vehicles and hydrogen fuel cell vehicles.

ii) Component Champion Incentive Scheme: This is a'sales value linked' scheme that applies to advanced automotive technology vehicle components, completely knocked down (CKD)/ semi knocked down (SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles, and tractors, among other things.

Players in the emerging market

Many leading battery manufacturers, such as Amara Raja Batteries, have taken these incentives as a cue to direct new investments toward green technologies, including lithium-ion batteries.

Leading players such as OLA Electric Mobility Pvt, Ather Energy, and Mahindra Electrics are rapidly expanding their market presence in response to the opportunity that India's EV industry provides. Furthermore, certain states, such as Karnataka and Tamil Nadu, are enacting novel and timely investor-friendly policies, in addition to constructing necessary infrastructure.

Tesla Inc., an American electric vehicle and clean energy company, recently announced its entry into India by establishing its subsidiary, Tesla India Motors and Energy Pvt Ltd, in Bengaluru.

Ather Energy, India's first intelligence EV manufacturer, relocated its US$86.5 million factory from Bengaluru (Karnataka) to Hosur in February 2021. (Tamil Nadu). The factory of Ather Energy is said to have an annual capacity of 0.11 million two-wheelers.

Ola Electric, the subsidiary of the unicorn Indian ride-hailing start-up, also announced in March 2021 that it would be establishing the world's largest electric scooter plant in Hosur (a two and a half-hour drive from Bengaluru) over the next 12 weeks, at a cost of US$330 million and with the goal of producing 2 million units per year. By 2022, Ola Electric hopes to ramp up production to 10 million vehicles per year, accounting for 15% of the world's e-scooters.

Meanwhile, Ola Electric reportedly sold INR 11 billion (US$149.26 million) in two-day sales, indicating market interest in electric two-wheelers in India. Scooters can be reserved on the Ola Electric website, and the next sales window opens on November 1. The electric scooters are made at the Ola Futurefactory near Krishnagiri in Tamil Nadu.

Greaves Cotton announced its entry into the multi-brand electric vehicle retail segment on September 9, 2021, under the brand name AutoEVMart. According to reports, this platform will provide consumers with a diverse range of electric vehicles to choose from, including Ampere Electric and other EV brands. Thus, AutoEVMart will serve as an electric vehicle marketplace in India, offering e-two-wheelers and e-three-wheelers, among other things, as well as EV accessories. Greaves Cotton envisions Bengaluru's first-of-its-kind multi-brand retail stores for clean tech or electric mobility.

Sterling and Wilson Pvt Ltd (SWPL), India's leading engineering, procurement, and construction company, recently announced its entry into the Indian electric mobility segment. It has formed a 50-50 joint venture with Enel X to launch and build innovative charging infrastructure in India on April 1, 2021.

Positive developments have also occurred in the expansion of charging infrastructure across the country, with states such as Andhra Pradesh, Uttar Pradesh, Bihar, and Telangana setting ambitious targets for the deployment of public charging infrastructure in order to increase the uptake of electric vehicles in the country.

Local fiscal sops, improved logistics, an investor-friendly government policy, business facilitation through easier access to authorities, supply chain connections, and the availability of adequate land are the primary reasons why certain states are performing better than others.

Karnataka was the first state to implement a comprehensive EV legislation and has emerged as a hotspot for EV enterprises in India, both in EV and EV auxiliary production as well as R&D. Tamil Nadu is also progressing at a noteworthy rate, given to its supply ecology, larger land parcels, closeness to ports, and proactive investor support via governmental portals such as Guidance Tamil Nadu.

However, while the EV industry is expanding, it still has a long way to go before meeting the government's ambitious 2030 target. The COVID-19 pandemic not only slowed industry progress, but also reduced overall market demand.

Nonetheless, market mood has remained positive in several sectors. EV sales for two-wheelers in India climbed by 21% in fiscal 2020. EV bus sales grew by 50% within the same time period. In contrast, the market for electric vehicles remained bleak, with a 5% fall. In terms of overall EV sales, following a brief dip in 2020, sales look to be gradually rebounding. In January 2021, 15,910 electric vehicles (EVs) were sold in India, with Uttar Pradesh selling the most, followed by Bihar and Delhi.

India's EV market development: Growth estimates and government policies

Estimates

Niti Aayog, the government think tank, produced a paper titled "India's Electric Mobility Transformation" in April 2019, estimating EV market penetration in India at 70% for commercial vehicles, 30% for private vehicles, 40% for buses, and 80% for two- and three-wheelers by 2030. These aims, if met, could result in a net reduction of 14 exajoules of energy and 846 million tonnes of CO2 emissions throughout the lifetime of the deployed cars. Electric vehicles sold until 2030 have the potential to save 474 million tonnes of oil equivalent, or US$207.33 billion, over their lifetime.

This will assist India in meeting its worldwide commitments to reduce carbon emissions and boost the use of cleaner energy and transportation, as required by the Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change (UNFCCC) and EV30@30.

Legislation

Federal policy

Several fiscal and non-fiscal measures have been implemented to encourage the use of electric mobility. They are as follows:

·       National Electric Mobility Mission Plan 2020 (NEMMP): It was launched in 2013 by the Department of Heavy Industry (DHI) as a roadmap for the speedier development and deployment of EVs in India.

1.     FAME Phase I: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India) Scheme was notified in April 2015 as part of the NEMMP 2020 to stimulate the manufacture of electric and hybrid vehicle technology. It has primarily concentrated on four areas: demand generation, technological platforms, pilot projects, and charging infrastructure. Incentives for demand generation have primarily taken the form of lower purchasing prices.

2.     FAME Phase II: This scheme, which was launched in 2019 for a three-year term, has an outlay of US$1.36 billion that will be utilised for upfront subsidies on the purchase of EVs as well as assisting the construction of charging infrastructure. FICCI has advocated for the extension of FAME II till 2025, as well as short-term boost incentives to promote demand. This second phase focuses on assisting with the electrification of public and shared transportation, with the goal of supporting around 7,000 e-buses, 500,000 e-three wheelers, 55,000 e-four wheeler passenger cars, and one million e-two wheelers through subsidies. In addition, the development of charging infrastructure is encouraged.

3.     Amendments to FAME Phase II: On June 11, 2021, the Ministry of Heavy Industry announced additional changes to the FAME II scheme in order to increase customer demand for EVs. The subsidy per electric two-wheeler (Indian-made), which is tied to battery size, has been increased to INR 15,000 (US$204.60) per Kilowatt-hour (KWh) from INR 10,000 (US$136.40) KWh under the new policy. Furthermore, makers of electric two-wheelers can now offer consumers discounts of up to 40%, up from the previous ceiling of 20%. These electric two-wheelers must have a minimum range of 80 kilometres on a single charge and a top speed of 40 kilometres per hour to be eligible for subsidies under the FAME II scheme. These incentives are projected to cut the buying price and boost buyer confidence, resulting in an increase in market demand. Industry stakeholders have praised the regulation changes, predicting that the electric two-wheeler industry will sell over six million units by 2025. However, according to a recent CRISIL research, 95% of India's e-scooters are ineligible for the FAME II incentive plan since they do not match the eligibility criteria.

·       Ministry of Power: It has been clarified that charging electric vehicles is considered a service, which means that operating EV charging stations will not require a licence. It has also created a policy on charging infrastructure in order to accelerate the adoption of EVs.

·       Ministry of Road Transport and Highways: Green licence plates will be awarded to both commercial and private battery-powered vehicles, according to the announcement. It has also stated that all battery-powered, ethanol-powered, and methanol-powered transportation vehicles will be excluded from the commercial permit requirement.

·       Department of Science and Technology: It has announced a major competition to set Indian standards for electric vehicle charging infrastructure.

·       Niti Aayog: The cabinet has authorised the National Mission on Transformative Mobility and Battery Storage, and the CEO of Niti Aayog would lead the Mission's inter-ministerial steering group. The Mission's goal is to develop a five-year Phased Manufacturing Program (PMP) to help India build large-scale, export-competitive integrated battery and cell manufacturing mega facilities, as well as localise production across the full electric vehicle value chain.

Policy for states and union territories

Over 27 states and UTs have developed mobility transformation strategies to provide citizens with safe, inclusive, cost-effective, and environmentally friendly transportation options. While certain states, like as Karnataka and Tamil Nadu, have had a head start thanks to well-thought-out public policies, targeted investor incentives, and support infrastructure, other governments have also crafted policies to boost market demand and build infrastructure.

Assam just published its Electric Vehicle Policy, 2021, with intentions to phase out gasoline-powered vehicles by 2030. The Assam government will convert all government cars and its public bus fleet to electric vehicles as a first step. In the next five years, the state plans to install 200,000 electric vehicles. The new EV Policy in Assam, according to the Industries, Commerce and Public Enterprises Department, encourages people to transition to electric vehicles. Assam also has a number of incentives in place to encourage the production of electric vehicles in the state (under the North East Industrial Development Scheme, 2017 and the Industrial and Investment Policy of Assam, 2019).

Electric Vehicle Policy in Indian States
State	Key policy targets
Maharashtra Maharashtra Electric Vehicle Policy, 2021	·       Issued in July, 2021. Valid till March 31, 2025 ·       Budget outlay of INR 9.3 billion (US$124.97 million). ·       Achieve 10% share of EVs in all new vehicle registrations by 2025. ·       Attain 25% electrification of public transportation and last mile delivery vehicle in five targeted urban agglomerations of Greater Mumbai, Pune, Nashik, Nagpur and Aurangabad by 2025. ·       Several purchase incentives across all segments of EVs, including e-buses. ·       Incentives for battery recycling. ·       Set up at least one Gigafactory for manufacturing of Advanced Chemistry Cell (ACC) batteries in the state. ·       Establish charging infrastructure across the state as well as connecting highways. Incentives for setting up charging stations.
Odisha Odisha Electric Vehicle Policy, 2021	·       Issued in August, 2021. Valid for five years ·       Achieve adoption of 20% EVs in all vehicle registrations in the state by 2025. The focus segments are two-wheelers, three-wheelers, four-wheelers, and electric buses. ·       Waivers on road tax and registration fees during policy period. ·       Incentives for EV and component manufacturing, including batteries. ·       Additional incentives for setting up both public and private charging infrastructure. ·       Additional sops for Lithium Ion battery manufacturing.
Assam Assam Electric Vehicle Policy, 2021	·       Issued in September, 2021. Valid for five years. ·       Achieve 25% penetration of EVs in the total number of vehicle registrations in Assam. ·       Support deployment of 200,000 EVs over the next five years. The segment wise breakup of this target is: o   Two-wheeler EVs – 100,000 units; o   Three-wheeler EVs – 75,000 units; and o   Four-wheeler EVs – 25,000 units. ·       Offer incentives for EV and component manufacturing. ·       Focus on recycling policy for batteries.
Gujarat Gujarat State Electric Vehicle Policy, 2021	·       Issued in June, 2021. Valid till 2025. ·       Budget outlay of INR 8.7 billion (US$116.90 million) ·       Support deployment of 2,00,000 EVs over next four years. The segment wise breakup of this target is: o   Two-wheelers EVs– 1,10,000 units o   Three-wheelers EVs – 70,000 units o   Four-wheelers EVs– 20,000 units ·       The incentives on EVs will be based on battery capacity, available up to INR 10,000(US$134.40)/kwh. ·       All EVs will be exempt from payment of registration fees. ·       Policy incentives for boosting the charging infrastructure in the state.
Rajasthan Rajasthan Electric Vehicle Policy, 2021	·       Issued in July 2021. Valid till March 31,2022. ·       All EVs purchased before March 2022 will be eligible for State Goods and Services Tax (SGST) refund. ·       Additional purchase incentive for electric two wheelers and three wheelers.
West Bengal West Bengal Electric Vehicle Policy, 2021	·       Issued on June 3, 2021. Valid for five years since notification. ·       Goal of one million EVs in the state across all segments during the policy implementation period. ·       Goal of establishing 100,000 public/semi-public charging stations in the next five years. ·       Achieve EV/Public charge point ratio of eight. ·       Recycling and reusing old batteries and discarding unusable batteries in an environment friendly manner. ·       Establishment of “EV Accelerator Cell” ·       Facilitate public charging infrastructure for EVs through DISCOMs.
Meghalaya Meghalaya Electric Vehicle Policy, 2021	·       Issued in March, 2021. Valid for period of five years since notification. ·       Seeks adoption of at least 15% EVs in the state in next five years by offering incentives. ·       Facilitate adoption of 20,000 EVs during the policy implementation period. ·       All types of EVs purchased during policy period shall be exempt from payment of registration fees and road tax. ·       Purchase subsidy of INR 10,000 (US$134.40)/kwh for the first 3,500 electric two-wheelers priced below INR 150,000 (US$2016.06) ·       Purchase subsidy of INR 4,000 (US$53.76)/kwh for first 200 electric three-wheelers priced below INR 500,000 (US$6720.20) ·       Purchase subsidy of INR4,000 (US$53.76)/kwh to the first 30 hybrid four-wheelers priced below INR 1.5 million (US$20,160). ·       Boost charging infrastructure by encouraging private investment. ·       Encourage reuse and recycling of batteries.
Andhra Pradesh Electric Mobility Policy (2018-23)	·       Goal of one million EVs by 2024. ·       Goal of 100,000 slow and fast EV charging stations by 2024. ·       Government plans to stop registration of petrol and diesel cars by 2024 in the upcoming capital city of Amaravati. ·       All government vehicles, including corporations, boards, and government ambulances to be electric by 2024.
NCT of Delhi Delhi Electric Vehicles Policy, 2020	·       Aims to have at least 50% e-buses for all new stage carriage buses procured for the city fleet, starting with 1,000 e-buses by 2020. ·       Aims for 25% of new vehicle registrations to be electric by 2024. ·       A purchase incentive of INR 5,000 (US$68) per kWh of battery capacity provided for two-wheelers and subject to a maximum incentive of INR 30,000 (US$409) per vehicle. ·       Incentive for scrapping and de-registering old highly polluting two-wheelers. ·       A purchase incentive of INR 10,000 (US$136) per kWh of battery capacity provided for electric four-wheelers (cars) (subject to a maximum incentive of INR 150,000 (US$2,039) per vehicle) for the first 1,000 e-cars registered in New Delhi after issuance of the policy. ·       Purchase incentive of INR 30,000 (US$409) per vehicle to owners of e-autos, e-rickshaws, and e-carts.
Karnataka Electric Vehicles and Energy Storage Policy, 2017	·       100% of three and four-wheelers moving goods will be encouraged to transition to electric by 2030. ·       Local public transport bus fleets to introduce 1,000 EV buses. ·       Aim to set up 112 EV charging stations in Bengaluru. ·       Focus on venture capital fund for e-mobility start-ups and creation of secondary market for batteries. ·       Incentives such as interest free loans on net SGST for EV manufacturing enterprises.
Kerala Electric Vehicle Policy, 2019	·       Target of bringing one million EVs to the state by 2022 and 6000 e-buses in public transport by 2025. ·       Viability gap funding for e-buses and government fleet. ·       Incentives such as tax breaks, road tax exemptions, toll charge exemption, free permits for fleet drivers and free parking. ·       Priority to EV component manufacturing.
Telangana Electric Vehicle and Energy Storage Solution Policy, 2020	·       100% exemption of road tax and registration fee for the initial electric vehicles purchases. ·       EV sales target to achieve 80% two- and three-wheelers (motorcycles, scooters, auto-rickshaws), 70% commercial cars (ride-hailing companies, such as Ola and Uber), 40% buses, 30% private cars, 15% electrification of all vehicles by 2025. ·       Job creation for 20,000 workers by 2025 through EVs in shared mobility, EV manufacturing, and charging infrastructure development.
Uttar Pradesh Electric Vehicles Manufacturing and Mobility Policy, 2019	·       Rolling out 1 million EVs combined across all segments by 2024. ·       Goal of 1,000 electric buses deployed in the state by 2030. ·       Target of achieving 70% electrification of public transportation by 2030 on identified green routes in 10 identified EV cities (Noida, Ghaziabad, Meerut, Mathura, Agra, Kanpur, Lucknow, Allahabad, Gorakhpur, and Varanasi). ·       Set up around 0.2 million slow and fast charging and swapping stations by 2024. ·       Establishes single-window system in place for all approvals required for EV and battery manufacturing units.
Madhya Pradesh Madhya Pradesh Electric Vehicle Policy, 2019	·       Rapid EV adoption and contribution to 25% of all new public transport vehicle registrations by 2026. ·       Some cities will stop registering new internal combustion engine (ICE) autos. ·       Enable faster adoption by ensuring safe, affordable, and accessible charging infrastructure. ·       Shared e-rickshaws and electric auto-rickshaws incentives: free cost of permits, exemption/reimbursement from road tax/vehicle registration fees for five years, and 100% wavier on parking chargers at any municipal corporation run parking facility for 5 years.
Tamil Nadu Electric Vehicle Policy, 2019	·       Electrify 5% of buses every year by 2030, and convert shared mobility fleets, institutional vehicles, and e-commerce delivery and logistics vehicles to EVs by 2030. ·       Convert all auto rickshaws in six major cities to EVs within a span of 10 years. ·       Establish venture capital and business incubation service hubs to encourage electric vehicle start-ups. ·       EV-related and charging infrastructure manufacturing units will receive 100% exemption on electricity tax till 2025.
Uttarakhand EV Manufacturing, EV Usage Promotion and Related Services Infrastructure Policy, 2018	·       Aimed at 100% electrification of public transport, including e-buses; shared mobility, including e-bikes, e-taxis; and goods transport using electric two-, three-, and four-wheelers and other mini goods transport vehicles in five priority cities by 2030. ·       100% electricity duty exemption and stage carriage permit exemption for five years from date of commercial production. ·       Exempts the first 100,000 EV buyers from motor vehicles tax for five years.
Bihar Draft Bihar Electric Vehicle Policy, 2019	·       Priority to electrification of rickshaws. Target of converting all paddle rickshaws to e-rickshaws by 2022. ·       Promotion to manufacturing of e-rickshaws. ·       Set up fast-charging stations at intervals of 50 km on state and national highways and charging stations at commercial and residential locations.
Himachal Pradesh Draft Electric Vehicle Policy, 2019	·       Aims for 100% transition to EVs by 2030. ·       Draft promotes creation of dedicated charging infrastructure and includes a provision for charging points in commercial buildings.

 

EV industry's challenges

·      Insufficient charging infrastructure: In 2019, India had only 650 charging stations, compared to 0.3 million in China. One of the main reasons why customers are hesitant to buy electric vehicles is a lack of charging infrastructure.

·      High costs: Along with range anxiety (kms/charge), the current high price of EVs is a major concern among potential customers. Electric cars in the same segment tend to be more expensive than lower-end (internal combustion engine) ICE cars. This is primarily due to the higher cost of the technology used in EVs, which accounts for a significant portion of the cost, leaving little room for other features typically found in premium vehicles. With increased R&D and market competitiveness, it is expected that the price factor will be rationalised in the future to suit price sensitivity, which is a primary factor influencing purchase in India, particularly in the lower-end car segment. Soon, vehicles such as cars and buses will be available. With the recent announcement of subsidies, EVs in the two-wheeler segment are expected to become more affordable. Since the government's priorities have shifted to sustainable, clean electric mobility, industry watchers anticipate a similar push to ease adoption of other electric vehicles, such as cars and buses, in the near future.

·      Limited options: Customers in India have a limited range of products to choose from because the industry is still in its infancy. Increased investment in the sector will eventually make it more competitive, which will help create more demand.

·      Lower mileage: Since the industry is still in its early stages, there is a lot of room for research and development. EVs are currently not cost competitive in India for the average customer, as ICE vehicles are more cost effective.

·      Higher dependency on imports: One of the factors driving up the cost of EVs in India is the country's reliance on imported batteries and other components.

·      Grid challenges: Another concern is the cost of charging electric vehicles at private charging stations once they become commonplace. According to Brookings India, even with a fair penetration of EVs, the increase in electricity demand is expected to be around 100 TWh (tera watt-hours), or about 4% of total power generation capacity, by 2030. As a result, increasing power generation methods is required to meet the increased demand.

Key parameters to keep in mind

Finally, the availability of capital for original equipment manufacturers, battery manufacturers, and charge point operators, as well as improvements in infrastructure and a diverse range of consumer options, will determine the size of India's EV market.

India's EV ambition will also necessitate an estimated annual battery capacity of 158 GWh by FY 2030, which presents investors with significant investment opportunities. At this point, enabling policy support measures are essential.

This appears to be something the government is aware of. It has been implementing PLI schemes to boost market demand in priority segments such as electric two-wheelers and localise production of key components such as ACC battery storage, electric vehicles, and auto components. Moreover, several Indian states have passed EV policies in order to attract industry investment and make EV adoption a more viable proposition for consumers.