EV Sales Triple in India

Sales of all-electric passenger cars in India tripled to about 3,600 units in the fiscal year ended March 31, as the government increases support for electrification, according to India’s Society of Manufacturers of Electric Vehicles.

The initiative, called FAME I (faster adoption and manufacturing of electric vehicles), was launched in 2015 by the government’s Dept. of Heavy Industries & Public Enterprises. It began as a modest two-year program backed by 9 billion rupees ($130 million) in government funding. The program was later extended through 2018.

Most of the budget went to retail incentives to EV buyers. The amounts ranged between 29,000 rupees ($417) for electric bikes to 138,000 rupees ($2,000) for cars.

In April, the government launched a broader, 100 billion-rupee ($1.4 billion) program, FAME II, which will run through 2022. About 10 billion rupees ($144 million) will be allocated under FAME II to install 2,700 charging stations in metro areas and along major roads. The goal is to create a grid of at least one station per 3 square kilometers (1.2 sq miles), according to the government.

FAME II also expands subsidies for the purchase of electric vehicles by commercial bus fleets and taxi services. The program hikes incentives to a range of 20,000 rupees ($288) for two-wheelers, 150,000 rupees ($2,200) for four-wheelers and 5 million rupees ($72,000) for electric buses. FAME II also supports the sale of long-range, plug-in hybrid vehicles.

The new initiative aims to support the purchase of 1 million electric two-wheelers, 500,000 three-wheelers, 7,000 commercial buses and 55,000 electric passenger vehicles by commercial operators and fleets.

India is eager to establish a domestic supply base to support the country’s fledgling EV market. Manufacturers say the relatively high price of EVs, even after incentives, has muted demand.