August 11, 2023. — The India Electric Mobility Council (IEMC) has called on the government to extend and enhance incentives for the EV sector. The council, comprising industry leaders, environmentalists, and experts, emphasized the crucial role of continued government support in driving the adoption of electric vehicles across the country. Issuing a warning, it predicted that eliminating sops would plummet EV sales to 37M from 125M by 2030.
In New Delhi, IEMC’s spokesperson showcased EV sector growth at a press conference, emphasizing existing incentives for remarkable progress. Moreover, these incentives, which include subsidies, tax breaks, and other financial benefits, have led to a surge in demand for electric vehicles. It also have contributed to a significant reduction in air pollution and carbon emissions in urban centers.
However, with the upcoming end of initial incentives, the IEMC worries the EV market growth might stall due to discontinuation. The council emphasized the need for a reliable, extended policy framework to instill confidence in automakers, investors, and consumers.
Sales of electric two-wheelers peaked in May at 105,299 units, but dropped to just 46,003 units in June. Even though sales increased marginally in July, reaching 54,176 units, they were still substantially behind May’s numbers. According to the IEMC, subsidies are a key component in India’s EV industry’s expansion.
The IEMC’s recommendations include extending tax benefits for EV manufacturers, promoting the development of charging infrastructure, and incentivizing the adoption of electric vehicles in public transportation. The council also emphasized the importance of collaborating with state governments to ensure a unified approach across the country.
The IEMC attempts to compile feedback from industry stakeholders to provide to the appropriate governmental bodies. It considers that other measures, beyond incentives and subsidies, need to be thought upon and put into action.
The demand for electric vehicles in India has been on the rise, driven by concerns over air quality, the need to reduce dependence on fossil fuels, and a global shift towards sustainable transportation. The IEMC’s incentive call matches government’s clean energy goals, shaping India’s EV sector path by playing a pivotal role.
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