Indian EV Industry Welcomes Incentives Under The New Maharashtra EV Policy 2021
The Indian government and stakeholders are pressing for the adoption of electric cars to be accelerated. Climate change is a global problem, and sustainability has emerged as a potential option for a safe future. Governments are becoming more used to charting global sustainable paths. Climate change objectives are incorporating into industry and society to show accountability for a more ecologically conscious future. Emerging technology and game-changing breakthroughs are paving the way for a cleaner, greener, and more sustainable future. Electric cars (EVs) are emerging as a game-changing sustainable alternative, and India has recognised large-scale EV adoption as crucial to reaching its targets.
What is the new scheme this time?
Revolt Motors, a RattanIndia-backed EV manufacturer, has praised the new Maharashtra Electric Vehicle Policy, claiming that its implementation, together with the FAME II incentives, will hasten the state EV adoption. Furthermore, Revolt Motors stated on Wednesday that the higher subsidy given under the new plan, making EV bikes more cheap and accessible to users.
Separately, credit rating agency ICRA stated that considering the significant contribution of the state to overall car sales in India, the policy's allocation towards demand incentives (including early-bird discounts) is a big plus.
On Tuesday, the Maharashtra government revealed its new EV strategy, which aims to attain a 10% share of total registrations for electric vehicles by 2025, among other things.
According to the Policy, the state government aims to reach 10% EV penetration as new vehicle registrations by 2025, as well as 25% EV adoption in public transportation and last-mile delivery trucks in six main cities by 2025: Mumbai, Pune, Nagpur, Aurangabad, and Nashik.
What is the government aim for by updating it?
It also intends to have an all-electric fleet of government cars by April 2022. In addition, the strategy calls for the government to provide subsidised incentives for the installation of 2,500 charging stations in cities and routes around the state. According to the New EV policy of the state, new real estate projects will require EV charging ready parking.
According to the firm, Maharashtra was one of the first states where Revolt began sales in February of last year, and it is rapidly expanding its sales dealership network in the state in response to high demand.
According to Revolt, the Maharashtra state government would give Rs 10,000 every bike as an incentive. Customers who purchase an e-bike before December 31, 2021, will receive an extra early-bird incentive of Rs 15,000 in addition to the benefits of Rs 10,000, for a total incentive of Rs 25,000.
It is similar to the FAME II incentive for EV producers, released today by the central government, which amounts to Rs 48,000 per bike in the case of Revolt, adding that merging these incentives will result in at least Rs 64,000 for every bike sold by Revolt in Maharashtra.
Additionally, EV bikes will be exempt from road tax and registration costs, allowing customers to save even more money. In addition, owners of petrol two-wheelers who transition to EVs would earn a scrappage incentive of Rs 7,000.
What is the view of the company towards the revised EV policy?
"In addition to the FAME II incentive, Electric Vehicle Policy 2021 of Maharashtra will expedite the state's adoption of electric cars," According to the company, “the new scheme's enhanced subsidy would make electric bikes more inexpensive and accessible to users."
The Maharashtra government's EV strategy, according to ICRA, is another step toward attaining speedier EV penetration in India.
Shamsher Dewan's Reaction: What did Shamsher Dewan, Vice President for Corporate Sector Ratings at ICRA Ltd. say on this?
"Like other states, Maharashtra's administration has disclosed its EV policy. The state government has proposed allocating Rs 930 crore over the next four years to encourage the use of electric vehicles and provide the essential charging infrastructure", ICRA Ltd Group Head and Vice President for Corporate Sector Ratings, Shamsher Dewan, stated.
"Considering the state's large contribution to overall vehicle sales in India, the policy's contribution toward demand incentive (including early bird discount) is a huge plus," ICRA said, noting that the expenditure will support by a mix of environmental and fuel cess.
It claims that combining the policy's numerous benefits will considerably reduce the price gap between EVs and ICEs, particularly for electric two and three-wheelers. The programme also encourages widespread usage of e-buses in important cities around the state, according to ICRA.
Although the policy framework of the state government will significantly contribute to the promotion of EV systems in the country, its implementation will be dependent on several factors, including the cost of the vehicle, the distance covered by a single fee, and, most importantly, the accessibility of charging infrastructure. In terms of EV adoption, India is off to a terrific start. To guarantee that EVs become a mainstream transportation choice in the country, tailor-made policy efforts, fast implementation, and industry-friendly regulation will be necessary.
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