The central government is setting aggressive targets for electric modes of transportation in the country. It has rolled out the FAME II policy, which subsidies lithium-based battery-powered electric vehicles. Now, it is planning to make all small two-wheelers (under 150cc) electric from April 1, 2023, according to a report in Autocar.
The government is also considering selling only electric three-wheelers from April 1, 2025.
The report stated that the centre is planning to double the subsidy amount for electric three-wheelers to Rs 20,000 per kWh.
A scrapping policy for vehicles is in the works and it will be linked to electric mobility promotion, the report added.
Apart from electric vehicles, the centre is looking at tighter norms for vehicles with internal combustion engine (ICE) by introducing a “Polluter Pays Principle” fee. This fee could be in the form of higher registration charges for ICE vehicles, and used as an incentive for electric-vehicle manufacturing, charging infrastructure and promotion.
While electric cars are yet to set a mark in the country, electric two- and three-wheelers have driven the total EV sales to 7.5 lakh in FY2018. Compared to that, 184.4 lakh petrol-powered two-wheelers (under 150 cc) were sold during the same period.
Industry experts believe that while this mandate is needed for the environment, it could hurt the manufacturers of conventional fuel-driven vehicles.
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