The industry group, India Electric Mobility Council (IEMC) has argued vehemently in favour of continuing to offer incentives to the EV industry, stressing that doing otherwise could result in a large drop in EV sales. Their analysis suggests that the elimination of these subsidies might cause a sharp decline in electric car sales, which could go from an estimated 125 million units to just 37 million units by the year 2030.
The IEMC cites research from the India Energy Storage Alliance (IESA) that highlights the potential consequences of ending demand incentives for electric vehicles in India. The IESA’s prediction is consistent with the IEMC’s fears, showing that such a move could result in a significant decrease in the EV market.
Notable is the fact that in 2015, the federal government unveiled the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) programme. This programme aims to encourage the development of electric vehicles by providing manufacturers with subsidies, which in turn benefit consumers by lowering costs. Building on the success of its predecessor, the government introduced FAME II, the program’s second phase, in 2019, demonstrating its commitment to advancing the electric car industry.