Ey Electrifying Indian Mobility Report

INDIAN VENTURE AND ALTERNATE CAPITAL ASSOCIATION
ELECTRIFYING
INDIAN MOBILITY
1
Contents
FOREWORD 4
EXECUTIVE SUMMARY 5
1. INTRODUCTION 6
2. THE NEED FOR ELECTRIC MOBILITY 7
2.1 GLOBAL FRAMEWORK FOR CLIMATE CHANGE (GFCS)
2.2 C
URRENT VEHICULAR POLLUTION LEVELS AND SUBSEQUENT
TRANSITION TO EVs
2.3 IMPACT OF EVS ON ECONOMIC GROWTH AND EMPLOYMENT
3. EV BASICS 10
4. EV DEMAND 12
4.1 TOTAL EV SALES
4.2 SEGMENT-WISE EV REGISTRATIONS
4.3 STATE-WISE EV REGISTRATIONS
4.4 PROJECTED EV SALES
4.5 GLOBAL COMPARISON
5. PLAYERS AND STAKEHOLDERS IN THE INDIAN EV ECOSYSTEM 20
5.1 OEMs/ START-UPS
5.2 COMPONENT SUPPLIERS
5.3 CHARGING INFRASTRUCTURE PROVIDERS
5.4 FLEET OPERATORS
5.5 CASE STUDY: CHARGING INFRASTRUCTURE - EUROPE
6. EV ADOPTION IN INDIA AND CHALLENGES 36
6.1 EV PENETRATION BY SEGMENT
6.2 BARRIERS TO EV ADOPTION IN INDIA
6.3 REMOVAL OF BARRIERS OF EV ADOPTION
6.4 EV FINANCING
7. ALL ABOUT THE POWER OF EVs 46
7.1 POWERING THE EVS – BATTERIES
7.2 RANGE ANXIETY AND CHARGING INFRASTRUCTURE
7.3 PLANNED OBSOLESCENCE/ RECYCLING
8. INVESTMENTS IN EVS (PE/VC FUNDING) 54
9. CASE STUDIES: SUCCESS STORIES 57
10. POLICY AND REGULATIONS 62
10.1 CURRENT INDIAN POLICY ENVIRONMENT FOR EVs
10.2 LEGAL ISSUES, POLICY AND REGULATION IN INDIA
11. POTENTIAL OPPORTUNITIES IN THE ELECTRIC VEHICLE SEGMENT 78
12. GLOBAL BEST PRACTICES FOR EVs 80
13. CONCLUSION 81
ANNEXURE 82
ANNEXURE : INCENTIVES OFFERED UNDER DIFFERENT STATE EV POLICIES
ACKNOWLEDGEMENTS 96
3
FOREWORD
Rajat Tandon
President, IVCA
2022 is proving to be a record year for EV sales giving a much-needed validation and confidence for consumers weighing their
options between ICE vs EV.
Indian Startups are keeping up with the times to have the technological edge and the traditional companies too have quickly
adapted to the change in consumer preferences. The government has been very proactive and supportive with EV policies
and incentives. At the same time, it’s great to see many states coming up with state level policies to support the EV industry.
The total cost of ownership is likely to reduce going forward with the growing demand and strong government resolve to
bring parity between ICE and EVs. Hon’ble Road Transport and Highways Minister Nitin Gadkari, recently said ‘The prices of all
electric vehicles (EVs) will be equal to the cost of petrol vehicles in the country within one year’.
Overall EV financing remains a concern for the industry, and there is a need for government and the larger investor community
to come together and come up with solutions.
PE/VC investors poured in around $1.7 billion in EV industry in 2021 while the number has touched approx. $666 million in
2022. With the growth in ESG and Climate specific funds, the investment momentum is expected to continue. As the startups
and companies grow, we are seeing many new and 1st time investors join the bandwagon.
Fast adoption of EV across all the segments is truly the path to the green frontier.
I thank all of you for your support and look forward to your continued participation in IVCA initiatives which is working tirelessly
to strengthen the Indian private equity and venture capital ecosystem.
I thank the EY and IndusLaw teams for putting together this report and for their detailed work.
EXECUTIVE SUMMARY
The Indian Electric Vehicle ecosystem is currently in the initial charging stations in the country. This number is expected
stages of development but has been gaining traction. In 2021, to increase to 100,000 units by 2027 to accommodate the
EV registrations amounted to ~330k units, a jump of 168% increasing demand by ~1.4 million EVs expected to be on the
from 2020. The sales were led by 2- and 3-wheelers – ~48% roads by then.
and ~47%, respectively – followed by passenger vehicles at
~4%. E-rickshaw/e-kart category (top speed less than 25km/ Currently, India adds about 2.5 billion metric tons of carbon,
hr) takes the major share among three wheelers with ~45%. or ~7% of the global emission. The ICE vehicular pollution
E-buses are included in others with a share of 0.36%. contributes to ~40% of the total pollution in India. With this,
it is imperative to usher in a strong push towards EV adoption
The spike can be attributed to the need for personal mobility, to curtail the increasing pollution. EVs will help reduce
increased awareness of the environment and rise in prices of exposure to VOCs (which are carcinogenic) and help improve
gasoline (which have increased by INR 43 in the three years life expectancy.
from 2019 to 2022). The second phase of Faster Adoption
and Manufacturing of Hybrid and Electric vehicles (FAME II) Climate change has led to a shift in global climate policy
incentives have also helped in the increased adoption of e2W. which requires the world to adopt a low carbon economy,
Q1 2022 has already seen sales of almost 110k units. thereby saving the planet from the adverse impact of climate
change. Around 20 states in India have already come up with
Uttar Pradesh tops EV registrations in the country with either a draft or final state level EV policy, these state policies
~20%, followed by Karnataka and Tamil Nadu. Of the overall overall aim to promote India’s transition from ICE to EVs.
2-wheeler registrations, ~67% are from Karnataka, Tamil
Nadu, Maharashtra, Telangana, and Rajasthan. Majority of Improving the air quality issues, mitigating climate change,
the 3-wheeler registrations are in Uttar Pradesh, Bihar, Assam, reducing dependence on oil imports and developing the
and Delhi, which collectively account for ~75% of total EV industry are some common objectives of the policies
sales. Maharashtra, however, boasts of the highest sales of published by the states. India has taken a leap towards a clean
passenger vehicles with ~3,700 units. energy-based future as it is evident from the changes in the
policies of the governments with respect to environmental
As of CY21, electric vehicles accounted for 1.1% of total protection.
vehicle sales and is expected to account for 39% of total
automotive sales by CY27 growing at a ~68% CAGR over the In terms of investments, EV industry has attracted ~USD
next 5 years. The majority growth in EVs is expected to come 6 billion in 2021 and is expected to gain USD 20 billion by
from the travel segment, especially E3Ws and E2Ws due to 2030. EV market has observed strong attention from PE/VC
fixed duty cycle and companies (E-commerce, groceries, investors in India with investments increasing from US$ 181
shops) committing to going completely electric in their last million to US$ 1,718 million (recording an annual growth rate
mile deliveries. of 849%). Ministry of Skill Development and Entrepreneurship
has estimated that EV industry can create 1 crore direct jobs
Lack of charging infrastructure is one of the biggest and 5 crore indirect jobs by 2030.
challenges for the EV sector. Currently, there are only 1,742
5
01 INTRODUCTION
There has been a global paradigm shift in how the future of vehicles will evolve. While flying
cars may not be seen as a feasible option in 2022, we have come a long way from the traditional
fuel-guzzling vehicles to alternatives such as EVs, both in two-wheeler and four-wheeler segments.
While Indian sentiments are clearly more oriented towards two-wheelers which occupy almost 70%
of road presence, this does not seem to be limiting the development of four-wheeler EVs. India is
actively investing in and promoting a market which is predicted to hit over a 9 million units mark per
annum by the year 20271. The need to shift to an alternative fuel can be attributed to rising fuel costs
and adopting cleaner energy sources. Climate change is an increasingly relevant concern, with every
major nation actively acknowledging the problem and looking at real time solutions, which provides
a further impetus to the shift to EVs.
The Indian automobile industry places heavy reliance on the use of traditional fossil fuels and
non-renewable forms of energy which has raised concerns regarding its impact on the environment,
climate change and the depletion of the non-renewable resources. To adopt a cleaner and more
eco-friendly energy alternative, India has formulated policies to shift from traditional ICE vehicles
to vehicles using alternate forms of energy, specifically EVs. Further, dependance on fuel imports
and the consistently rising prices of conventional fuels have also prompted consumers to seek more
cost-efficient sources of transportation. These initiatives for adoption of clean engines for both
commercial and private vehicles has led to an increase in the number of manufacturers of EVs in the
short and long distance transportation and last mile connectivity arenas2 . Mahindra & Mahindra,
an Indian manufacturer of automobiles, plans to aggressively expand its range of EVs being offered
in the Indian market and has planned for an investment of approximately USD 400 million whilst
also looking at foreign investors3. TVS Motors, a two-wheeler manufacturer, is also in discussion
with global private equity investors looking at investment of approximately USD 296 million to
USD 493 million for business expansion into EVs through the launch of a new line of electric
two-wheelers4.
1 Secondary Research, Secondary Reports, EY-P analysis

2 https://medium.com/batterybits/electric-vehicle-policy-framework-in-india-6bdc3ed64ed7
3 https://www.autocarindia.com/car-news/mahindra-electric-sub-brand-likely-plans-for-8-ev-launches-by-2027-422580
4 https://economictimes.indiatimes.com/industry/renewables/tvs-in-talks-to-raise-up-to-500-million-for-ev-subsidiary/articleshow/87595707.cms?utm_
source=contentofinterest&utm_medium=text&utm_campaign=cppst
THE NEED FOR
02 ELECTRIC MOBILITY
2.1 Global Framework For

Climate Change (GFCS)
GFCS is a framework that enables decision making on better solar and nuclear energy can enhance the global position of
climate management, based on a scientific approach that can its commitment to deal with climate change. While any such
predict climate information which can be utilized for planning, change requires multilateral support, all eyes are set on India
policy formation and practice. The GFCS framework also aims to become a global leader of sustainable development.
that every country and climate-sensitive sector of the society The INDC has set a target of 175 GW of renewable energy by
is well equipped to access and apply the relevant climate the year 2030 basis India’s ‘National Solar Mission’. With India
information. actively working on reducing usage of coal based thermal
power generation, it may be possible to achieve this target
The origin of GFCS can be traced back to 2009 when different way before the scheduled date of 2030.
heads of states, ministers and delegations met at WCC-
3 which was held from 31 August 2009 to 04 September EVs could be one of the major consumers of renewable energy.
2009 in Geneva. It was decided to establish GFCS to provide In a country like India where cost is one of the important factors,
climate monitoring and prediction services through scientific majority of vehicle owners also looks forward to costs accrued
climate studies and resources. A global partnership like GFCS in a longer run in using such vehicle. While the dependence
can enable both state and private organizations to come on consumption of fossil fuel is high, the world is now looking
forward and collectively find solutions for issues related to for an alternative and sustainable option. Interestingly, in India,
climate, especially in developing countries. GFCS also seeks both central and state governments are actively taking up the
to build upon continued improvements in climate forecasts cause of pushing EVs. The governments are proactive and have
and climate change scenarios to expand access to the best adopted several policies which not only incentivise the buyers
available climate data and information. The collective efforts and consumers but also strengthen their role as value chain
by the stakeholders under GFCS can be utilised to achieve participants. While offering subsidy is one of the major features,
the desired results of better management of risks of climate it is equally important to allow investment by the corporates in
variability. An effective global partnership can enable climatic the segment of EVs.
predications based on the scientific findings and informed
decision making. The issue of pollution in India has been highlighted on a
global level. Some of the most polluted cities in the world are
Climate, though a global phenomenon, has local located in India. The year-on-year statistical data on pollution
consequences. In the Indian context, the issue of climate of some of the major states in India has seen a continuous
change is more complex due to various factors. India has growth and air pollution has become one of the major
adopted two major climate change policies. One such policy reasons of low life expectancy in India. Indian automotive
is NAPCC which was adopted on 30 June 2008. The other industry has faced some resistance in implementing and
policy is called INDC, submitted to the UNFCC on 02 October enforcing emission norms. One direct example of this can be
2015. While NAPCC has its focus domestically, INDC is more seen where the central government in January 2016, decided
of a statement of intent on climate change in relation to the to skip BS-V norms and jump to BS-VI norms by April 2020.
‘Paris Climate Change’ summit which is held every year. Any transition from one set of BS norms to a higher level of
BS norms require drastic improvements or changes in the
The NAPCC captures India’s intent of ecologically sustainable engine and technology. For an automobile manufacturer, this
developments and steps that may be needed to implement would entail some extra costs and such improvements need
such developments. It focuses on energy, industry, to be carried out with the subsequent BS norms which will be
agriculture, water, forest and urban spaces. The NAPCC can implemented. EVs on the other hand do not contribute to any
be considered as India’s response to climatic change and form of pollution which can be cost effective for automobile
promotes collective effort for other States to contribute to manufacturers in the longer run.
this global phenomenon. India is realising that its reliance
on fossil fuels must reduce, and that it should shift more Some of the major states in India have adopted policies
towards renewable sources of energies while preserving its related to EVs which clearly define the objectives, as more
economic growth. Usage of cleaner sources of energy such as elaborately described in Chapter 10.2.1.
7
2.2 Current Vehicular Pollution
Levels And Subsequent Transition
to EVs
Currently, India adds about 2.5 billion metric tons of carbon or ~7% of the global emission. The ICE vehicular pollution contributes
PM2.5 (having a width of less than two and a half microns), which amounts to ~40% of the total pollution in India.
It is imperative to usher in a strong push toward EV adoption to curtail the increasing pollution. EVs will help reduce exposure to
VOCs, which are carcinogenic, and help improve life expectancy.
As per the government targets, assuming 30% of vehicle PARC are EVs by 2030, a 17% decrease in particulate matter and NOx
emissions, 18% reduction in CO2 emissions, and 4% reduction in GHG emissions can be achieved.
Current ICE vehicle usage and projections (commercial/travel demand) and the impact of incremental
demand being met by EVs
Vehicle sales in India (in Million units)

18.33 17.92 17.46
17.28 16.96 15.9
14.94 14.24
9.1
7.4
5.6
3.9
2.2
0.03 0.2 0.7
CY20 CY21 CY22E CY23E CY24E CY25E CY26E CY27E
ICE EV
Source: Secondary research, secondary reports, EY-P analysis

As of CY21, EVs accounted for 1% of total vehicle sales and are expected to account for 39% of total automotive sales by CY27.
The majority of this growth is likely to come from the travel segment, especially E3Ws and E2Ws (occupying 34% and 64% of total
vehicle registrations as of June 2022). Though the adoption rate of e-buses is lower (0.5% of total vehicle registrations) than E2Ws
and E3Ws (The numbers include e-rickshaws and e-carts, which are estimated to reach ~850,000 units in 2027), it is expected to
gain traction with state governments inviting tenders to procure e-buses on a large scale. E4Ws are expected to take additional
time for large-scale adoption due to issues related to range anxiety, varying duty cycles, and sparse charging networks.
High EV adoption by CY27 can decrease particulate matter by ~39%*.
2.3 Impact of EVs on Economic

Growth and Employment
New entrants manufacture most EVs in the two-wheeler, three-wheeler, and bus segments. Several manufacturers
have technology tie-ups with international players (Olectra Greentech has collaborated with BYD to roll out a
12-meter K9-electric bus), bringing investments and the latest technology into the country. These collaborations are
aimed at setting up new factories, generating employment opportunities, and competing in existing markets with
established OEMs. In terms of investments, the EV industry has attracted ~US$6 billion in 2021 and is expected to
gain US$20 billion by 2030. Furthermore, it is estimated that if India reaches the government’s target, it can become
a manufacturing hub for EVs, subsequently driving the exports.
On the employment front, the Ministry of Skill Development and Entrepreneurship has estimated that the
EV industry can create one crore direct jobs and five crore indirect jobs by 2030. There is a significant scope for
employment in the technological domains, such as artificial intelligence, analytics, and application development.
The industry is likely to observe high recruitments in development and manufacturing, wherein it can also bring
subject-matter expertise involving supplychain, operations, and consumer behavior. Strong demand is expected
for professionals skilled in electrical concepts. Furthermore, the government has also offered support through the
National Skill Qualification Framework (NSQF), enabling channels to energize skilling and generate a resource pool
for the EV industry.
FUEL IMPORT
India is ~85% reliant on imports to meet its crude-oil requirements. Being a large oil-importing economy, its oil
imports amounted to US$119.2 billion in FY22, up from US$62.2 billion in FY21. This resulted in the current account
deficit hitting a 3-year high of 1.8% (US$43.81 billion) in FY22.
In the coming fiscals, crude oil demand is expected to grow 3%-4% annually, leading to a strong imperative shift
from fuel-powered vehicles. This can present a strong opportunity for EVs to fill the void. They will also reduce India’s
oil dependency, decarbonize the mobility industry, and help it transition toward zero-emission models.
According to the research study by Council on Energy, Environment and Water (CEEW), if the share of EVs increases
to 30% by 2030, India could save up to US$14 billion on its oil import bill.
5 *EY analysis: ICE vehicles can generate particulate matter of PM 2.5 by CY21. This figure could have reached PM 4.9 by CY27 without the
adoption of EVs. However, particulate matter content to reach PM 4.07 by CY27, with EV sales amounting to 1.4 million units. 9
03 EV BASICS
EV Technology
Component-wise cost breakdown for EVs
Battery
Motor
35% 40% Battery management systems
Charger
Others (including interiors,
powertrain, chassis, exterior, etc)
5%
5%
15%
VEHICLE COMPONENTS AND TECHNICAL DIFFERENCE IN ICE VS. EV:

The fundamental component in an EV is a high voltage battery (occupying 40% of the cost of production). The battery is
responsible for providing sufficient energy to the electric motor and is placed on the floor or in the boot.
The electric motor is another essential component of EVs, responsible for converting electrical energy into mechanical energy
and propelling the vehicle to move. Almost all EVs are equipped with automatic transmission (direct drive), reducing the need
for transmission fluid and lower power loss to the wheels.
The power train is the differentiating system between ICE and EV. Power trains for ICEs are complex compared to EVs, with
hundreds of parts, including differentials, axles, emission controls, exhausts, and engine cooling systems. EV powertrains have
a relatively simpler structure compared to ICE power trains and only include battery packs, charging ports and drive train units.
TOTAL COST OF OWNERSHIP (TCO) AND ITS EVOLUTION:

Currently, there is a strong imparity in Capex for EV and ICE variants, with an electric car costing ~2x of an ICE variant. Similarly,
the cost of e-buses is ~1.5-2x higher than the diesel counterparts, subject to specifications. Strong government support
(from central and state governments) in the form of subsidies has helped E2W and E3W achieve price parity with their ICE
counterparts. However, OEMs are struggling to achieve price parity for E4W and buses, owing to the inflationary impact driving
the input prices. Additionally, the EV industry is heavily import-driven pertaining to Li-ion battery cells, and the high inflation
rate in India has deteriorated the USD/INR, making it difficult for importers to procure cells at a lower cost.
With this, India must develop indigenous battery supply chains to achieve price parity for E4W and e-buses. Furthermore, the
EV industry needs economies of scale to be resilient to the frequent input price shocks.
High demand subsidies under the Faster Adoption and Manufacturing of Hybrid and EV (FAME II) scheme coupled with
the emergence of the battery-as-a-service (BaaS) model are likely to reduce the total cost of operation (TCO) of EVs in
coming years.
11
04 EV DEMAND
4.1 Total EV Sales

India’s electric vehicle (EV) market is fast becoming a complex sector defined by different requirements by enterprises,
governments, and consumers. While decarbonization of logistics and mobility is a prime concern for all stakeholders, high
costs, small scale, lack of domestic technology, and demand limited to pockets are among the many challenges.
The Indian EV ecosystem is currently in the initial stages of development but has been gaining traction. In 2021, EV registrations
amounted to ~330k units (a jump of 168% from 2020. The sales were led by 2- and three-wheelers — ~48% and ~47%,
respectively — followed by passenger vehicles at ~4%. The e-rickshaw/e-kart category (top speed less than 25km/hr) has a
significant share of ~45% among three-wheelers. E-buses, with a share of 0.36%, are included in others.
EV registrations have increased by ~168%, from 120,000 in 2020 to ~330,000 in 2021 (these numbers include e-rickshaws). The
main EV segments are electric two, three and four-wheelers and buses. Among these, electric two-wheelers (e2W) account
for ~48% of the total number of vehicles sold in the market. Registrations in 2022 are set to increase and have already crossed
~120,000 in the first quarter of 2022. Electric three-wheelers (e3W), cars and buses accounted for only ~47% of the total sales
in 2021. Range anxiety (due to the non-availability of chargers) and limited models from established OEMs are the two biggest
roadblocks to having increased EV penetration in India.
4.2 Segment-wise EV
Registrations
Electric 2-wheelers (e2W)
Sales of e2Ws have gained traction in the last two years, going from ~27,000 to over 143,000, a growth of
~425% over 2020. The spike can be attributed to the need for personal mobility, increased environmental
awareness and a rise in gasoline prices (increased by INR43(~46%) from 2019 to 2022). The second phase
of Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME II) incentives have also helped
in the increased adoption of e2W. The first quarter of 2022 has already seen sales of almost 110,000 units.
e2W (no. of units sold)

160,000
143,306
140,000
No. of vehicles sold (units)
120,000 109,566
100,000
80,000
60,000
40,000 26,261 27,271

15,109
20,000
1,416 1,422 1,438
0
2015 2016 2017 2018 2019 2020 2021 Q12022
Calendar Year
13
Electric 3-wheelers (e3W Auto)
Electric 3-wheelers: Apart from e2W, the electric 3-wheeler (e3W) auto market (which includes
the cargo and passenger segments but excludes e-rickshaws) has seen a significant increase in
patronage. Most of the sales are coming from the goods segment, as companies use e-autos for
last-mile delivery. Their total cost of operation per km is lower than the conventional IC engine autos’
by ~55%. In addition to that, increase in e-commerce sales and easy switch ability from ICE due to
fixed load cycles (groceries) are helping drive sales. Passenger autos are still ICE based, as their load
cycles are not regular, and range anxiety remains a hurdle. The projected numbers do not include
E-rickshaws and e-carts, which are estimated to reach ~850,000 units by the year 2027.
e3W Auto (no. of units sold)

8,000
7,108
7,000
6,000 5,504
5,189
5,000
4,000
3,000 2,557
2,025
2,000 1,501 1,583 1,454
1,000
0
2015 2016 2017 2018 2019 2020 2021 Q12022
Calendar Year
Electric 4-wheelers (e4W)
Electric four-wheelers (e4W) sales gained momentum in 2021 (after the pandemic) due to higher gasoline
prices and the growing need for personal mobility. However, it is still in the early stages, and ICE cars are
dominating the market. Several factors are contributing to this scenario. Most households have only one
car. Moreover, e4W doesn’t have the range needed for inter-city commute (not fixed load cycles), and the
price difference between ICE and EVs is significant. However, we expect a ~200% increase in sales in 2022
compared to 2021.

14,000
11,680
12,000
9,619
10,000
8,000
6,000
4,000 3,117
2,000
687 610 812 866 679
0
2015 2016 2017 2018 2019 2020 2021 Q12022
Calendar Year
15
Electric buses
Fleet electrification is a fledgling segment. There are fewer e-buses than ICE ones, and the
penetration is also low. Limited models from OEMs, range anxiety, varying duty cycles, and high
initial procurement costs prevent the segment from growing. However, e-buses with improved
efficiency are a high priority for several state governments aiming to decarbonize public transport
and retire over-aged buses. More traction in this segment is expected over the next five years.
Electric Buses
1,400
1,186
1,200
1,000
800
600
460
400 324
200 88
31 43
0
2017 2018 2019 2020 2021 Q12022
Calendar Year
4.3 State-Wise EV
Registrations
In 2021, EV registrations amounted to ~330k units, a jump of 168% from 2020. The sales were led by two
and three-wheelers with ~48% and ~47% respectively and followed by passenger vehicles with ~4%.
E-rickshaw/e-kart category (top speed less than 25km/hr) takes the major share among three wheelers
with ~45%. E-buses are included in others with a share of 0.36%.
EV Registrations-2021
Passenger
vehicles, 4%
Others, 1%
Two-wheelers, 48%
Three-wheelers,
47% N=330
With ~20% share, Uttar Pradesh tops EV registrations in the country, followed by Karnataka and Tamil
Nadu. Of the overall e2Ws registrations, ~67% are from Karnataka, Tamil Nadu, Maharashtra, Telangana,
and Rajasthan. The majority of e3Ws are in Uttar Pradesh, Bihar, Assam, and Delhi, collectively accounting
for ~75% of total sales. Maharashtra, however, boasts of the highest sales of passenger vehicles with
~3,700 units.
Apart from the overarching role played by the central and state governments as policymakers, the EV
ecosystem in India is broadly divided into three sets of players: EV suppliers, component and infrastructure
suppliers, and consumers. Each set has its own structure, complexity, and challenges.
State-wise EV Registrations - 2021

70000
60000
50000
40000
30000
20000
10000
0
ka
at
rs
h
ra
am
n
lh
ha
ad
es
an
he
ar
a
a
ht
De
at
th
s
ad
Bi
j
iln
ng
Ot
Gu
as
As
rn
jas
Pr
ar
la
Ka
Ra
Ta
Te
ah
r
ta
M
Ut
Two-wheelers Three-wheelers Passenger vehicles Others
6 Secondary reports referring to Vahan website and Telangana Regional Transport

7 Does not include low speed vehicles as they do not require registration 17
4.4 Projected EV Sales
Total EV sales are expected to grow at a CAGR of ~68% till 2027. The increased sale will be driven by the e2Ws and electric auto
segments (including e-rickshaws).
Sales of e2Ws and e3Ws are set to increase by 2030 due to a fixed duty cycle (this will lower range anxiety) and the initiatives
by small businesses such as local groceries shops to adopt electric vehicles for last-mile deliveries. Amazon and Flipkart, for
instance, are aiming for a 100% electric fleet by 2030. Electric buses will gain traction due to a need for more fuel-efficient
buses. E-buses will replace the over-aged buses at most State Road Transport Undertakings (STUs) due to a better operating
model with OEMs.
Total EV Sales (no. of units sold)
EV as total % of Automobiles – Current and Projections
EV as percentage of total vehicle sales
33.1% 39.0%
26.0%
18.7%
11.2%
1.1% 3.8%
0.2%
CY20 CY21 CY22E CY23E CY24E CY25E CY26E CY27E

4.5 Global Comparison
Asia-Pacific is leading the race in terms of EV adoption with 5.5 million units of EV sales in CY2021, led by China.
The Chinese market has robust raw material processing capabilities and a strong density of local EV manufacturers,
leading to a secure supply chain and significant product rollouts. On the other hand, India is heavily reliant on
foreign markets to procure raw materials for batteries, which leads to a high total cost of ownership (TCO) for EVs,
resulting in a relatively lower adoption than global peers.
Global EV sales in million units - CY21 (segmented by regions)
51%
23%
32%
49% 77%
68% 36%
64%
America Asia Pacific Europe
Hybrid EVs Battery operated EVs
We believe that decarbonization is of national importance to India from the point of view
of securing our energy needs while creating a sustainable future. At NIIF we are upbeat
about the prospects of decarbonization and are evaluating investment opportunities
across technologies and their respective value chains – one of which is the transition to
electric vehicles.
We recently invested in Ather Energy which is a leading indigenously designed electric
two-wheeler manufacturer. The electric scooter industry is expected to grow significantly
in the coming years driven by customer acceptance and consumer aspiration for
future-ready products.
India is at an inflection point as far as electric penetration is concerned for scooters.
Apart from electric vehicles, we believe that there will be significant opportunities to
invest across the value chain including component manufacturers, battery and battery
management systems, and mobility services.
- Padmanabh Sinha, ED & CIO, Growth Equity, National Investment

and Infrastructure Fund (NIIF)
19
PLAYERS AND
05 STAKEHOLDERS IN THE
INDIAN EV ECOSYSTEM
The following map shows different key stakeholders in the EV ecosystem
Electricity producers
and DISCOMs
Charging infra
providers (fixed and
swapping)
Powertrain and
non-powertrain OEMs/ Start-ups Consumers/Fleet
suppliers operators
Financial Institutions
Government/Policy Makers (MoP, MHI, MoRTH etc.)
5.1 OEMS/ Start-ups

Two Wheelers (e2W)
The e2W segment is largely divided into high-speed and low-speed vehicles. Low-speed vehicles have a
top speed of 25km/hr and do not require registration or a driver’s license. High-speed vehicles, with a top
speed greater than 25km/hr need to be registered. The low-speed section was dominating sales until Q2-
21. However, with the increase in FAME II incentives from mid-last year, entry-level high-speed vehicles
have become cheaper than low-speed ones, resulting in de-growth in the low-speed segment in the last
two quarters of 2021. The following graphic provides the landscape of players in the e2Ws segment:
Led by Hero Electric and Okinawa with 32% and 21% market share respectively, the top 10 players
accounted for majority of the sales in high-speed e2Ws. Revolt is the only e-motorcycle producer
currently present among the top 10 while others are e-scooter manufacturers.
OEM Market share in high speed segment

(Total sales, 2021: ~158k
3% 1%
3% 5%
3%
4%
32%
8%
9%
11% 21%
Hero electric Okinawa Ather Ampere

Pure EV TVS Revolt Bajaj
Benling India Jitendra new EV Others
The e2W segment has been gaining pace, and some significant players have launched products
or announced their entry in 2021. Hero MotoCorp, the world’s largest motorcycle manufacturer, is
expected to launch its electric scooter in March 2022. Products from Ola and Bounce are also likely
to take a fair share of the sales from 2022. Bounce is the first e2W manufacturer to announce battery
swapping with its Infinity E1 model.
Hero
Okinawa Bajaj TVS Ather Ola Bounce Revolt
Electric
Photon HX I-Praise+ Chetak iQube 450X S1 Infinity E1 RV 400
Battery (kWh) 1.8 3.3 3 2.25 2.61 2.98 2 3.24
Remov-
Removable/
Battery type Removable Removable Fixed Fixed Fixed Fixed able/
swappable
swappable
Top Speed
45 58 60 78 80 90 65 45-85
(kmph)
Peak Motor
1.8 2.5 4.08 4.4 6 8.5 2.2 5
power (kW)
Eco-85
Range (km) 108 139 95 75 Ride-70 121 85 80-150
Sport-60
Charge Time 0-80% in 3.5 4 hrs 48
5 4-5 5 5 4-5 4.5 hours
(Hrs) hrs (home) mins
Payload (kg) - 150 - - - - - 150
Kerb Wt. (kg) 87 150 100 118 108 121 94 108
Ex-showroom 93088- 1,32,426- 79,999- 45,000-
74,240 105,990 1,42,830 106,999
Price (INR) 1,28,113 1,47,087 99,999 68,999
21
23
Three Wheeler (e3W)
The sales of e3Ws are dominated by low-speed vehicles (top speed of 25km/hr), categorized as e-rickshaws/
e-karts. A significant part of the sales (~90%) is for passenger movers, while cargo movers are limited to
~10%. The top players include YC Electric, Mahindra, Saera, and Champion, among others.
Omega
Parameter YC Electric Mahindra Kinetic Piaggio Euler Altigreen
Seiki
Safar Ape city
Yatri Deluxe Treo Yaari Rage + HiLoad DV neEV
smart (fixed)
Category e-rickshaw e-rickshaw e-rickshaw L5 L5 cargo L5 cargo L5 cargo
Battery
- (Lead Acid) 3.69 4 7.5 10.8 12.4 11
(kWh)
Top Speed
25 25 25 45 45 42 53
(kmph)
Peak Motor
1.4 1.95 1.2 5.44 9.55 10.96 8.25
power (kW)
Range (km) 75-90 125 100 110 120 151 150-180
Charge 3.5-4
5-7 2.5 2 3hr 45min 5 3.5 (0-80%)
Time (Hrs) (slow)
Payload (kg) 380 - - 413 500 655 550
Kerb Wt.
326 276 - 300 460 690 -
(kg)
Ex-show-
room Price 1,50,000 1,77,000 1,53,000 2,83,000 3,59,000 3,49,999 -
(INR)
Passenger vehicles
In 2021, EVs registered in the passenger vehicle segment were 14,218, a jump of ~200% from 4,642 in 2020.
However, their penetration is 0.48%, up from 0.2% in 2020.
OEM Market share, 2021 Model-wise Market share, 2021

1% 0.30% 1.30%
19% 17.70%
80% 19%
62%
Tata MG Hyundai Mahindra Tata Nexon EV MG EZS Tata Tigor Others

Tata Motors MG Hyundai Mahindra
Nexon Tigor EZS Kona Verito
Battery (kWh) 30.2 26 44.5 39.2 21.2
Top Speed
120 80 140 165 86
(kmph)
Peak Motor
96 55 105 100 31
power (kW)
Range (km) 300 306 419 452 181
0-80% in 1 (fast);
Charge Time 0-80% in 1hr 6-8 (AC) 11.5 (slow);
0-80% in 8.5 6 (AC); 1 (DC fast)
(Hrs) (fast); 8.75 (slow) 50min (DC fast) 1.5 (fast)
(slow)
Kerb Wt. (kg) 1400 1235 - 1535 1265
Ex-showroom 14,29,000- 11,99,000- 21,49,000- 23,79,000- 10,15,000-
Price (INR) 16,90,000 13,14,000 25,18,000 23,97,800 10,49,000
Electric Buses
Electric buses have found limited acceptance, and most of them are purchased by state governments or State Road
Transportation Corporations (SRTCs). Nearly 1,200 e-buses were sold in 2021. The market is dominated by Tata Motors
with ~32% market share, followed by JBM and Foton PMI with ~28% and ~21% share, respectively.
PMI Mobility
Tata Motors Ashok Leyland Olectra
(Foton)
Star bus EV Urban 12m bus K7
Battery (kWh) 250 152 250 -
Top Speed (kmph) 70-75 - - 70
Motor power (kW) 245 (Peak) 145 (Rated) 150 (Continuous) 180 (Peak)
Range (km) >200 144 (nominal) 200-300 200
Charge Time (Hrs) 2-3 (fast) 0.5-1 (fast) 2-3 2-3
GVW (T) 19.5 18 - 13.5T
25
5.2 Component Suppliers
The key difference between ICE and EVs is the power train. The conventional engine in ICE is replaced by an
e-motor, a battery pack, and power electronics.
Battery
Battery manufacturing consists of two major steps: cell manufacturing and pack manufacturing. Currently,
battery cells are imported from countries like China and South Korea, and packs are assembled locally.
However, some players have announced plans to start cell manufacturing in India.
Battery
Commentary
Manufacturers
Joint venture between

l
Suzuki, Toshiba and Denso
Will manufacture & supply
l
Li-ion batteries to Maruti
Suzuki & Suzuki Motor
Gujarat plant
Joint venture between Exide

l
and Leclanche; Exide to
have 80%
Will initially import cells from
l
Leclanche’s plant in Germany
Plans to invest INR 4,000 Cr

l
on a plant in Dholera, Gujarat
Can manufacture up to
l
10GW per annum in its
127-acre plant, along with
recycling operations
Japanese multinational
l
owned by TDK
Has spent INR 550 crores to
l
acquire 180-acres land in
Haryana for the plant site
India-based energy storage

l
& renewable energy start-up
Has purchased 125-acres
l
land and has a MoU with
Guidance Tamil Nadu
(Govt nodal agency)
Other battery technology manufacturers in India include:

Electric Motor
As the need to localize components grows, several global and Indian companies have increased their focus on
developing and manufacturing Brushless DC motors (BLDC) and Permanent Magnet Synchronous Motors (PMSM).
Motor
Commentary
Manufacturers
Head quartered in
l
Gurgaon, Sona Comstar is a
manufacturer of integrated
powertrain solutions for
EVs including differential
assembly for e-passenger
vehicles, hub motor for 2Ws,
drive motors for 2/3Ws and
motor controllers
One of the leading suppliers

l
of EV components in India
Manufactures motors,
l
controllers, and integrated
drivetrains
MAHLE GmbH is a German

l
automotive supplier with
global presence
The company manufactures
l
electric motors for 2/3Ws for
Indian market
Global tier-1 automotive

l
supplier, Varroc has
developed a 48V PMSM
motor and is supplying
to one of the leading 2W
players
Lucas TVS is a part of TVS

l
group, which entered EV
segment with BLDC and
PMSM motors for bicycles
and 2/3Ws; products for
passenger vehicles and
tractors in the pipeline
One of the leading auto

l
components suppliers,
Valeo has launched an
e-powertrain system
(reducer, integrated motor &
inverter) for 2/3Ws; currently
powering Omega Seiki’s
vehicles
27
5.3 Charging Infrastructure
Providers
Fixed charging and battery swapping are the two types of public charging options currently available. OEMs
like Tata Motors, Ather and Ola are establishing exclusive charging infrastructure. Some of the prominent
third-party players providing charging solutions include:
Charging infra
Vehicle segments Fixed charging Battery swapping
provider
2Ws/3Ws/passenger
Vehicles ü ü
2Ws/3Ws/ passenger
vehicles/ e-buses ü ü
2Ws/3Ws/passenger
Vehicles ü û
Passenger vehicles ü û
2Ws/3Ws/passenger
Vehicles ü û
2Ws/3Ws/passenger
Vehicles ü û
2Ws/3Ws
û ü
2Ws/3Ws
û ü
Other players in charging infrastructure space include:
29
Charging Infrastructure:
The lack of charging infrastructure is one of the biggest challenges for the EV sector. Currently, there
are only 1,742 charging stations in the country. This number is expected to increase to 100,000 units by
2027 to accommodate the increasing demand by ~1.4 million EVs expected to be on the roads by then.
An adequate presence of charging points, especially for fast charging, can tip the scales in favor of EVs,
especially as cars and two to four- wheelers are expected to be used for long-distance transport. Currently,
the limited presence of charging points means customers cannot opt for quick top-ups or charging their
vehicles in emergencies.
Charging Stations
120,000
100,000
100,000
80,000 72,000
60,000
48,000
40,000 34,000
19,000
20,000
6,000
1,742
0
1st Q 2022 2022E 2023E 2024E 2025E 2026E 2027E
Calendar Year
5.4 Fleet Operators
Fleet Operator 2Ws 3Ws PVs Remarks
Started as a bike-sharing company with ICE
l
vehicles, Bounce has transformed itself into
an e2W manufacturer
ü Has a fleet size of 4,000 vehicles and plans to
l
expand it to 100,000 by 2026; could include
its product, Infinity E1, in the fleet
A fleet operator in bike sharing model; has
l
deployed 10k low-speed e2Ws; plans to
ü expand to 900,000 by 2026
Investor and a strategic partner, Bajaj, is
l
likely to support Yulu’s future product
development
Exclusive e2W fleet operator catering to
l
ü businesses
Plans to expand fleet from 2,000 in 2021 to
l
100,000 by 2026
e3W operator with a fleet size of 1000 vehi-
l
cles in Delhi NCR
ü Recently closed a funding round of INR100
l
crore for fleet expansion to 10,000 vehicles
across six cities in the next 18 months
Founded in 2015, LetsTransport is an aggre-
l
gator of e3Ws and light commercial vehicles
ü for last-mile logistics
The company is planning to add 1000 e3Ws
l
to its fleet by June 2022
Operates electric passenger vehicles and has
l
a fleet size of 400 vehicles in Delhi NCR
ü Partnered with Tata Motors for the expansion
l
of its fleet; Tata Motors to supply 3500
XPRES –T EVs
Based out of Bengaluru, Lithium Urban tech-
l
ü nologies holds a fleet of 400 electric passen-
ger vehicles
Other fleet operators in India are:
Alt Mobility MoEVing Prakriti E-mobility
Infaprime Logistics
Oye Rickshaw VOGO
Technologies
31
5.5 Case Study: Charging
Infrastructure - Europe
Evolution of charging infrastructure in Netherlands
The European Union has 0.3 million public charging points situated across its countries. The highest density for EV
chargers is in the Netherlands, with 47.5 stations per 1,000 km, followed by Luxembourg (34.5), Germany (19.4), Portugal
(14.9) and Austria (6.1).
The growth in EV charging infrastructure across Europe is due to the increased adoption of EVs. According to the European
Automobile Manufacturers Association, one in 11 new cars sold in 2021 was fully electric (a 63% increase from 2020). EV
growth is largely driven by the strong need to comply with European Union CO2 norms for cars and vans.
The growth in the expansion of charging infrastructure is also fueled by the adoption of digital applications, like
ChargeMap and PlugShare, which enable the detection of surrounding chargers.
Furthermore, the EU plans to expand its network of charging stations to 2.9 million by 2030, with an earmarked budgetary
outlay of EUR1.8 billion (3% of the EU’s annual budget for roads and infrastructure).
Netherlands has observed strong density in EV charging stations, beating its European counterparts. The expansion of
the EV charging ecosystem in the Netherlands started in 2010 with 400 charging stations, despite EV adoption being in its
early stages. The charging stations grew exponentially in subsequent years to reach 75,000 in 2021 (one-third of the total
charging market in Europe).
The growth in charging networks is attributed to a slew of supply-side initiatives by the Dutch government, including:
1.Cost reductions of up to 36% for purchasing and installing charging stations
2.Tax return up to 75% of costs associated with purchasing and installing charging stations.
Furthermore, municipalities, provinces, and regions are encouraged to develop their mobility programs individually
through subsidies and other incentives. Municipalities associate themselves with external partners to ensure charging
network expansion and operation.
The Dutch government expects the initiatives to lead to increased EV adoption as it has forecasted 400,000 EV PARC by
2030. The government’s commitment to zero-emission mobility and corresponding growth in EV charging space has led
to strong EV optimism.
We are bullish on overall rising EV penetration globally and have been investing behind this theme since 2017. The combination
of declining costs and improving energy density for lithium-ion batteries, supportive policies across geographies and increased
consumer interest as more electric options become available have greatly accelerated adoption. As more governments and
companies commit to net zero targets, electric vehicles are among the consensus technologies expected to be adopted ever
more quickly.
We have investments across the value chain including lithium extraction, mining exploration using AI for nickel/lithium/cobalt/
copper, OEMs, battery manufacturing and materials, recycling and EV charging. The batteries needed to make this transition
away to electrification requires significant capital to expand availability of raw materials, scale up new technologies and ramp up
manufacturing. We believe this will drive growth for existing companies and allow new, large companies to emerge, particularly
those with defensible moats.
- Caitlin Walsh, Managing Director, Growth Equity, CPP Investments
We strongly believe that climate concerns have become an integral component in business decision making and consumer
preferences. The Indian government is aligned and is taking resolute steps to decarbonize the economy with a push towards
electrification of mobility. As investors, we believe the EV space in India is nascent but evolving rapidly. This offers investors an
opportunity to not only make significant financial returns but also drive outsized environmental and social impact. This dual
outcome is something that we are very excited about.
- Nikhil Khattau, Managing Partner, Mayfield India
33
35
EV ADOPTION IN INDIA
06 AND CHALLENGES
6.1 EV Penetration by Segment

Two Wheelers (e2W)
Electric 2-wheelers are showing a significant increase in sales, with numbers touching ~110k in the first
quarter of 2022, and on to a projected ~535k for the year. The numbers are estimated to reach ~7.2 million
vehicles with a CAGR of ~68% over the next 5 years till 2027, with a penetration of ~38%. The government
has set a target of 80% penetration by 20230, which we feel is aggressive; a realistic target of 45-50% seems
achievable by 2030, especially considering the recent incidents of battery fires.

8,000,000
7,222,800
7,000,000
6,019,000
6,000,000
5,000,000 4,630,000
4,000,000
3,087,000
3,000,000
2,000,000 1,381,000
1,000,000 535,018
1,448 15,433 27,754 27,271 143,283
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Calendar Year
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
% Penetration 0% 0% 0% 0% 1% 4% 9% 18% 26% 33% 38%
Three Wheeler (e3W)
There is a substantial increase in the penetration of e3W vehicles, with ~5% penetration in Q1-22. The
passenger segment currently has lower penetration because only a few models are available. Cargo
models are expected to see more traction primarily due to two factors: an increase in e-commerce sales
and last-mile deliveries; and a commitment from Amazon and Flipkart to go 100% electric by 2030. The
Delhi government has asked for an aggressive push in using e3Ws for its delivery aggregators; a draft policy
is being prepared.

300,000
241,928
250,000
196,262
200,000
156,850
150,000
95,109
100,000
48,682
50,000
20,756
1,501 2,557 1,583 5,504 2,025 1,454 7,108
0
2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E 2027E
Calendar Year
2015 2016 2017 2018 2019 2020 2021 2022E 2023 2024 2025
Penetration 0.30% 0.50% 0.30% 0.80% 0.30% 0.60% 2.70% 6.67% 13.44% 22.22% 31.60%
2026 2027
33.90% 40%
37
Four Wheelers (e4W)
Increasing fuel prices and the need for personal mobility will fuel an increase in this segment. Currently, at
~1%, we expect to see ~4% penetration by 2027. There is a push for hybrid, E5 and E10-based fuels, which
will allow IC engines to be used soon.
The present low penetration of e4Ws is due to various factors.
There are only a few models available in the market. In addition, these models have range issues and are
l
slow charging. Newer and better models are expected in the coming years.
Most families have only one car, which is used for local and out-station commutes. This translates to non-
l
fixed duty cycles.
The current limitations in the charging infrastructure are expected to remain deterrents in the near future.
l
There will be more traction after 2025-26, and electric cars may achieve ~12% realistic penetration in the
segment.
4W eV (no. of units sold)

120,000
101,650
100,000
84,632
80,000
67,254
60,000 53,198
42,867
40,000 31,737
20,000 11,680
687 610 812 866 679 3,117
0
2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E 2027E
Calendar Year
2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E
% Penetration 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.00% 2.00% 2.00% 2.00%
2026E 2027E
3.00% 3.40%
Electric Buses
Demand for electric buses has been very low. However, the segment is expected to gain traction over the
coming years to reach ~16% penetration by 2027. Maximum demand is from the over-aged and beyond
replacement cycle (>11 years) of STU buses from six states. The supply of 5,450 buses from Tata Motors to
these state STUs will help increase the penetration over the next 4 to5 years. There is traction in the intra-
city transportation segment due to fixed duty cycles and the availability of chargers (once the buses are
operational) at the bus depots to allow for quick top-ups between duty cycles.
e-Bus (no. of units sold)

18,000
15,456
16,000
14,000
12,170
12,000
10,000
8,113
8,000
5,795
6,000
3,739
4,000
2,194
2,000 1,186
460
31 43 88
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Calendar Year
2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E 2027E
% Penetration 0.1% 0.1% 0.5% 0.3% 4.1% 5.1% 6.8% 9.0% 10.9% 14.8% 16.3%
The EV industry has been booming in recent times with 3L+ EVs
sold in the first 5 months of 2022. The industry is expected to grow
at a CAGR of ~47% by 2030 and is well-positioned to significantly
contribute to the Indian automotive industry. The macroeconomic
environment also looks promising with the government pushing
for greater adoption of electric mobility transport with schemes like
In India EV penetration is led by two – wheelers,
FAME I & II and the Union Budget 2022 providing a greater impetus
unlike developed markets where it is driven by
towards more sustainable and renewable energy source alternatives.
luxury passenger cars. While incumbent companies
These reasons make EV an exciting space for investors.
have been slow off the blocks, it would be wrong
to write them off, there are a lot of opportunities Within the start-up ecosystem, we have seen a significant rise in the
currently available in the private space and number of companies in the EV space in the past couple of years. EV
soon they will be available for the public market has almost become synonymous to start-ups with majority of the
investors as well. companies in the space being recently established. Several early-stage
startups have also progressively started to develop predictable cash
- Anshu Kapoor, President & Head, Investment
flow models, making them ideal for debt financing. While investment
Management, Edelweiss Wealth Management
in the space has increased, it continues to be a largely untapped
market, presenting a significant opportunity for investors to bridge
the funding gap through structures like Vehicle financing, Capex
financing, etc. This presents a huge opportunity for EVs to be driven
commercially through electric bikes, rickshaws, buses, cabs, etc.
- Ishpreet Gandhi, Founder & Managing Partner, Stride Ventures
39
6.2 Barriers to EV Adoption
in India
While it cannot be denied that EVs provide huge benefits over traditional vehicles that use fossil fuels, there
are several challenges that need to be addressed to realise the full potential of EVs in India. The major issues
present in the EV space are summarised below:
6.2.1 Charging Infrastructure

One of the major hurdles in adoption of EVs in India is the unavailability and slow development of charging
infrastructure. Charging infrastructure is the foundation on which the EV market is built and India has not
achieved an expeditious pace of establishment and use of charging infrastructure which creates a barrier in
both production and sale of EVs in India. Factors like unsurety in utilization rates of charging stations, huge
operating costs, load on electricity DISCOMs, etc., create a negative environment for operators to establish
charging stations and discourage investment when there are not sufficient number of EVs in Indian roads
for operators to realise the returns on their investments.
However, as discussed above, Indian policymakers are taking steps to address the lack of charging
infrastructure and providing legal regulatory support for setting up of charging infrastructure for EVs. A
smart, low cost, AC charge point has been developed by the DST and the office of the PSA to the Government
of India with NITI Aayog for light EVs (e-scooter and e-autorickshaws) which may be installed in metros,
railways, parking spaces, shopping malls, offices, residential areas which will give a much needed push for
EVs. Since this low cost AC charge point requires lower investment the dependance on subsidiaries and
concessions from the government can also be reduced.
6.2.2 Batteries used in EVS

EVs use lithium-ion batteries that require the use of metals like lithium, magnesium, cobalt, nickel, etc. This
means that to successfully incorporate EVs as mainstream vehicles adequate resources of these metals are
required to manufacture the batteries used in EVs. For countries deficient in these resources, manufacture
of EVs become dependent on availability of the same mainly through imports which increases the cost of
procurement of raw materials and manufacturing of EVs. In the financial year 2019-2020, India imported
approximately 450 million units of lithium-ion batteries at a cost of approx. USD 865 million. Lithiumion
batteries also have a huge environmental impact. Lithium extraction requires a huge amount of water,
harms the soil, and contaminates the air. In addition, recycling of lithium-ion batteries is also not efficient
since they degrade over time and cannot be used as new batteries.
However, alternatives to lithium-ion batteries are being developed by major manufacturers in the
automobile industry. A prime contender of replacement of lithium-ion batteries is a dual carbon battery
which is both less toxic and cheaper than lithium- ion batteries. Research is well underway to intensify the
energy density of such batteries. Another way forward is the use of aluminum-air batteries to shift reliance
to bauxite and aluminum from lithium which is of limited availability in the country.
7 https://pib.gov.in/PressReleasePage.aspx?PRID=1717977
6.2.3 Research and development
India still falls behind on strong R&D capability and consequently, manufacturers rely mostly on technological
know-how borrowed from their foreign counterparts for EV components. Main research areas related to
EV components are the constituents of the cells of lithium-ion batteries since these constitute the most
expensive components requiring significant research in these areas. Research is required to be undertaken
on high priority on EV components to make way for affordable and efficient adoption of EVs. However, this
scenario is also changing, and the ARAI has been leading research on EVs and fast charging technologies as
per the requirements of the Indian market.
6.2.4 Pollution
Compared to traditional vehicles that burn fossil fuel for energy, EVs are a cleaner, greener and better
alternative in curbing depletion of natural resources and greenhouse gas emissions from the automobile
industry. However, it cannot be denied that manufacture and use of EVs also contribute to environmental
degradation. A major reason for pollution attributable to EVs is the use of traditional fossil fuels like coal to
generate electricity for charging infrastructure. Establishment and operations of charging stations depend
largely on the thermal power plants that further contribute to pollution. Therefore, it is important that the
source of power generation for charging infrastructure be cleaner alternatives like solar or wind or hybrid
power plants since using traditional power generating methods may defeat the main purpose of adoption
of EVs.
As discussed above, extraction of metals for manufacture of lithium-ion batteries also causes contamination
of soil and air and require huge amount of water. Disposal of batteries of EVs also is an arena of concern.
Only a small number of batteries are recycled and most batteries end up in garbage dumps or are used for
extraction of metals through other unclean technologies.
From a legal perspective, the Batteries (Management and Handling) Rules, 2001 does provide for a
mechanism for handling and disposal of lead-acid batteries, however these rules do not cover lithium ion
batteries used in EVs. The Ministry of Environment, Forest and Climate Change have published the draft
Battery Waste Management Rules, 2020 for suggestions from the public which defines ’battery’ to include
lead acid/lithium ion/lithium metal/nickel cadmium batteries. The draft Battery Waste Management
Rules, 2020 lays down detailed provisions on the responsibilities of the manufacturers, producers, dealers,
recyclers, consumers, state pollution control board/pollution control committee and other stakeholders
for collection, labelling, disposal and handling of batteries, including establishment of collection centers,
which will provide a much needed ecosystem to curb pollution attributable to lithium ion batteries used
in EVs. 15
8 http://164.100.24.220/loksabhaquestions/annex/173/AU1018.pdf
9 https://www.instituteforenergyresearch.org/renewable/the-environmental-impact-of-lithium-batteries/
10 https://www.instituteforenergyresearch.org/renewable/the-environmental-impact-of-lithium-batteries/
11 https://economictimes.indiatimes.com/articleshow/69766788.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
12 https://www.thehindu.com/news/cities/Hyderabad/iit-hyderabad-research-team-develops-an-alternative-to-lithium-ion-batteries/article34248169.ece 41
6.2.5 Consumer attitude
Cost effectiveness is one of the major factors an Indian customer considers before making their choice and
if the EV market cannot showcase cost benefit and optimum utilization, it might fail to attract the attention
of Indian customers. Various levels of the Indian government have attempted to provide cost incentives
to EV consumers that addresses the issue in a limited manner. However, barriers like absence of sufficient
charging infrastructure, cost for repetitive battery replacement, etc., do not make EVs a popular option for
the Indian consumers. Further, in the absence of widespread marketing strategies concerning the impact
and importance of EVs, Indian consumers have limited awareness of EVs as alternative to traditional fossil
fuel engine-based vehicles.
Despite the above, there has been an influence of global trends on Indian consumers resulting in an
upward shift in consumer preference toward EVs. Global brand like Tesla, an American manufacturer of EVs,
has earned world recognition in making cost effective and energy efficient EVs which have become world
renowned. The worldwide adoption and use of EVs along with awareness of the importance of climate
change has slowly instilled the consumer’s confidence in EVs in the Indian market. Another factor that
has influenced the attitude of the Indian consumer towards EVs is the introduction of e-rickshaws which
has replaced traditional rickshaws in the public transportation sector due to their cost, energy efficiency
and cheaper maintenance. This has also contributed to the Indian market feeling familiarised with EVs
and willing to adopt EVs over traditional engine-based vehicles. Therefore, evolving consumer trends can
contribute to make the EV market in India grow exponentially. Incentives and subsidies offered by the
government also go a long way to facilitate widespread adoption of EVs by Indian consumers.
The resolution of the aforementioned barriers may be undertaken through serious intervention by
the government at various levels, ownership of EV infrastructure at high levels, fast decision making,
collaboration and coordination with different stakeholders in the EV space and serious commitment to
short and long term goals is required to ensure faster adoption of EVs in India.
The switch to electric mobility presents itself as one of the biggest

changes of our lifetimes. The impact on India - although under- The car is becoming a smartphone on wheels,
appreciated widely - will be all pervasive, perhaps as big as the advent resulting in a digital transformation within the
of Internet itself. There are opportunities to build scalable and lasting automotive sector that is creating opportunities
companies across the value chain - OEMs and Components, Charging for expanded revenue through additional
and Swapping operators, EV Financing and Mobility. Given this is a services. Qualcomm Technologies, Inc. provides
technology intensive landscape, it give startups a unique opportunity advanced solutions that support the entire
to play in a very large market albeit one where they are at a level field transportation ecosystem and the ongoing
with age-old incumbents. transformation of the automotive industry.
As compared to most of the technology-enabled sectors, predicting Electrification, autonomous driving, shared
the future of these businesses is, unfortunately, fraught with risk as it is mobility – are all future possibilities that the
a dynamic and inter-connected ecosystem where everything is likely automotive sector should be prepared for.
to impact everything else. As a consequence, while entrepreneurs are Qualcomm Ventures looks forward to supporting
happy building for the customer love, investors find it hard to wrap innovative startups in this space and the digital
their minds around this. This work by EY and IVCA will surely help transformation of the India mobility sector.
unravel some of this mystery and provide frameworks that can lead to - Varsha Tagare, Managing Director,
super’charging’ the EV ecosystem in our country. Qualcomm Ventures
- Arpit Agarwal, Director, Blume Ventures
13 https://thewire.in/environment/electric-vehicles-lithium-ion-batteries-coal-power
14 Ministry of Environment, Forests and Climate Change Notification No. S.O.770(E) dated 20 February 2022 available at https://moef.gov.in/wp-content/
uploads/2020/02/BATTERY-RULE.pdf
15 https://scroll.in/article/992703/india-faces-two-major-challenges-in-its-transition-to-electric-vehicles
6.3 Removal of Barriers of
EV Adoption
The Indian government, both at centre and the state, have taken several steps to address the barriers to
faster EV adoption in India. Actions that have been adopted to facilitate wider acceptance and infiltration
of EVs are discussed in brief below.
6.3.1 Adoption of EV infrastructure

There have been several methods adopted for developing an ecosystem viable to the establishment of
EV charging infrastructure. As has been discussed in the previous chapters, governmental authorities are
providing incentives to increase the number of EV charging stations in India at both the central and state
levels. In addition, the MoP has also delicensed the activity of charging of batteries of EVs by clarifying that
charging stations do not undertake any activity of, transmission, distribution or trading of electricity as
envisaged under the Electricity Act, 2003. In addition, the guidelines on charging infrastructure issued by
the MoP have also made it easy to set up charging stations in offices, residential areas, parking spaces and
any other public spaces by any individual or corporate firm without the requirement of any licenses subject
to the guidelines issued by the MoP and the CEA. Incentives and subsidies are also being provided to attract
investment in charging infrastructure. Under the FAME II, the MHI has sanctioned the establishment of 2877
EV charging stations in 68 cities across 25 states/UTs and 1576 EV charging stations across 9 expressways
and 16 highways . Therefore, it can be said that development of sufficient charging infrastructure in India is
well underway to ensure seamless adoption of EVs as mainstream vehicles.
6.3.2 Provision of incentives and subsidies

As has been discussed in the previous chapters, it is evident that the government has introduced both
demand and supply side incentives which are both financial and operational. This is important to enhance
both manufacture and sale of EVs in the Indian automobile industry. Cost of manufacturing of EVs is still
high resulting in high cost of EVs and incentives are required to be introduced to give EVs a competitive
edge over traditional petrol/diesel vehicle. Subsidies may be provided to manufacturers of EVs and EV
components especially during the nascent stages of development of the EV sector in India. A unique
method being contemplated by the Indian authorities is to require taxi aggregators like Ola and Uber to
convert their fleet to 40% EVs by 2026 . Previously, Ola attempted to operate EVs but was restrained due
to unavailability of related infrastructure and high costs. However, with governmental intervention it can
be expected to that aggregators will have regulatory support in converting their fleets. Such plan may be
extended to food delivery operators like Swiggy and Zomato, and e-commerce firms like Amazon, Flipkart,
etc., that rely exclusively on delivery vehicles.
16 Press Information Bureau report dated 07 December 2021 available at https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1778958

17 https://www.businesstoday.in/latest/economy-politics/story/govt-plans-to-order-uber-ola-to-convert-40-of-their-cars-to-electric-by-april-2026-
report-203053-2019-06-07 43
As discussed in the previous chapters, several Indian states have also adopted EV policies that provide incentives and
subsidies that create an investor and consumer friendly ecosystem that gives the EV industry a much needed push
over traditional petrol/diesel engine vehicles. These incentives and subsidies have been summarised in Annexure I to
this report.
6.3.3 Division of activities

Several agencies have been appointed and empowered for the expeditious implementation of policies and regulations
issued by the state and central governments. These agencies constitute of concerned ministries, industry experts, R&D
institutes, academicians, and other stakeholders that interact and coordinate to find solutions to the issues hindering
the adoption of EVs in the Indian market. An example of the same is the constitution of the NCEM and NBEM with the
NAB constituting of experts to assist the NCEM and NBEM. Task forces, subgroups, working groups, etc., also assist
in rolling out all facets of the policies and initiatives which streamlines the implementation process and effectively
resolves of issues at various levels of implementation.
6.3.4 Increase in consumer awareness

It cannot be denied that consumers have adopted an attitude of transition and acceptance of EVs keeping in mind
the need of the hour to adopt energy efficient and clean modes of vehicles. This is generating significant demand for
establishment of proper EV infrastructure and EV manufacturing hubs. A major trend has been seen in the adoption
of EVs by e-commerce platforms and delivery companies which has boosted EV sale and manufacture. Considering
that the growing e-commerce and delivery industry are one of the major contributors of greenhouse gas emissions,
this transition from ICE vehicles to EVs in these industries is expected to go a long way in curbing the effect of these
businesses on the environment. It is also likely that the operational cost of these companies may reduce leading to
an increase in their profit margins. Further, adoption of EVs is also a good marketing strategy for companies that have
traditionally been polluting sectors and are now adopting more sustainable and environmentally friendly approaches.
6.4 EV Financing
EV financing in India is still in its infancy, as a strong transition to electric mobility is yet to be observed. However, many
fintech companies, including Rev Fin, Oto Capital, and Three Wheels United, have taken the lead in EV financing and are
reporting high volume growth of 5x-8x since the easing of COVID-19 restrictions in CY2021.
Fintech companies have collaborated with banks to offer innovative lending schemes, including 12 to24 months of
purchase, lower EMIs and attractive interest rates. The Union Ministry also has extended support to make EVs a priority
lending sector. (RBI requires 40% of net banking credit to be deployed toward key priority sectors)
Some of the robust ecosystem enablers driving EV financing include:

1)Digital sourcing, underwriting, and sanctioning can help streamline lending toward EVs.
2)The commercialization of new business models can help build consumer trust for EVs.
Geopolitical events in 2022 have reinforced India’s need to accelerate its shift, as a large oil-importer, towards
electric mobility. The Government too is thinking about the EV industry as strategic, one in which enabling local
champions to scale is key.
With this backdrop, Indian companies are now beginning to integrate into the global EV supply chain and are
discovering how broken it is. Shortages that range from semiconductor and chips to electric metals to batteries
are hitting companies everywhere, leading to more technology and sourcing partnerships becoming the
norm. As shortages persist, technology-forward OEMs will bridge the gap vs. today’s market-leaders and new
technologies and vertical integration will become the new way to differentiate.
Matrix India is excited to be part of shaping this industry and it is our privilege to already be in business with the
best founders in this sector in India. But it is still early-days, there will be multiple multi-billion dollar companies
in the EV sector and we hope to be partners to all of them over the next decade. If anyone can think of a bigger
capex cycle and technology revolution than this upgrade to a cleaner, more energy secure future, then you know
where to find us.
- Rajinder Balaraman, Managing Director, Matrix India
There is a near-global consensus to achieve net-zero CO2 by 2050 and urgency to rapidly decarbonize all
sectors continues to rise. India is committed to reducing its carbon footprint and has made national policy
announcements and investments to secure its energy future. Transport is a major source of energy demand & it
is vital to reimagine this value chain. As a multi-sector fund, we have backed early-stage teams that are striving
for category leadership across last-mile mobility and charging infrastructure. We will continue to invest in and
support many more teams creating IP and business models to support rapid transformation.
As India’s first VC PRI signatory, 3one4 continues to grow its commitment to ESG-aligned tech businesses. Electric
mobility has become an important area of investment focus, and we are grateful to be able to play a role in the
growth of tomorrow’s change makers.
- Sonal Saldanha, VP, 3one4 Capital
45
ALL ABOUT THE
07 POWER OF EVs
7.1 Powering the EVs – Batteries

Lithium-ion is the primary battery technology being deployed. Given the fast uptake of EVs in many
countries, global demand for lithium-ion batteries is increasing rapidly. As of 2021, the established battery
capacity is estimated to be 736GWh and is expected to reach ~1TWh in 2023. The demand for battery
capacity in India, however, is still low. As of 2021, it was estimated at ~1GWh.
Total Battery Capacity Demand

GWh, 2021-30E
200
179
180
160
140
120
100
80
60 54
40
20 17
1 5
0
2021 2024E 2026E 2028E 2030E

e-Scooters e-Motorcycles e3W e4W e-Bus
Until 2025, a large part of the Indian market will comprise sub-10kWh batteries that go into the e2Ws and
e3Ws. Large-scale growth in the passenger vehicle segment is a critical factor in the rising battery capacity.
Given India’s low reserves of lithium/ cobalt and reliance on imports to meet the rising demand, along
with the absence of its cell technology, it is anticipated that the domestic capacity will stay low — most
of the demand estimated will be met through imported cells. Until 2025, a large part of the Indian market
will comprise sub-10kWh batteries that go into the e2Ws and e3Ws. Large-scale growth in the passenger
vehicle segment is a critical factor in the rising battery capacity. Given India’s low reserves of lithium/ cobalt
and reliance on imports to meet the rising demand, along with the absence of its cell technology, it is
anticipated that the domestic capacity will stay low — most of the demand estimated will be met through
imported cells.
Battery Chemistry - India, 2021

100% 15%
67% 80%
50% 85%
33% 20%
0%
Two-wheelers Passenger vehicles Buses
LFP NMC
In terms of choice based on chemical composition, Nickel Manganese Cobalt (NMC) batteries have a
higher energy density than Lithium Iron Phosphate (LFP) batteries. Thus, LFP batteries are used mostly for
stationery purposes.
Companies foraying into battery manufacturing:
New York-based CV4 has signed a Memorandum of Understanding with Omega Seiki. It aims to become
l
India’s first lithium-ion cell maker with solid-state technology under the government’s ambitious
INR18,000 crore PLI scheme.
Eventually, C4V plans to produce solid-state batteries with 400Wh/kg energy density in India to cater to
l
the EV and renewable market.
Tata Motors plans a 15% improvement in energy density of battery tech by 2024-25 and another 20%
l
improvement beyond 2025.
Tata Motors also plans a 10% improvement in packaging efficiency of battery technology and a 5% to6%
l
jump in efficiency levels of EV motors by 2025.
Key deterrents for localization of batteries in India are:
1. High entry barriers in terms of technology and capital due to lack of India-made technology and highly
consolidated market with five dominant global players.
2. Import dependency for key raw materials like lithium and cobalt as the global supply chains are volatile
and not well established.
3. Lack of scale as the market is primarily focused on the price-sensitive two- and three-wheeler industry
that comprises numerous small battery packs.
SUPPLY-CHAIN OF RAW MATERIAL FOR BATTERIES
The key elements sourced for manufacturing lithium-ion batteries Cobalt: Cobalt, a core ingredient in EV battery, is sourced from
include lithium, cobalt, manganese, graphite, etc. The raw material Democratic Republic of Congo. The conflicted region has observed
processing involves a series of steps including mining, separation, several local skirmishes, leading to many companies losing their
concentration, and primary refining. The ores are further sent to strategic grasp over the mines. With this, the cobalt supply will
metal and chemical refineries for further processing and then finally probably reach a standstill in subsequent years.
sent to component manufacturers.
Graphite: China, a central hub for graphite mining, reported a
India has low mine density for procuring key raw materials on timely decline in graphite production in 2021 due to depletion of its ore
basis, leading to high dependency on international markets. This reserves. Benchmark Mineral Intelligence, a consultancy firm, expects
has posed high geopolitical perils for India’s ability to ensure timely 80,000 tonnes of graphite deficit in 2022 (~20,000 tonnes graphite
procurement of raw materials. can provide for roughly 2,50,000 EVs).
Lithium: As India has fewer avenues to procure lithium locally, the India must seek alternate avenues to set up recycling stations and
majority of procurement is done from China. This could eventually diversify supply chains to localize the procurement of battery raw
slow India’s ability to be self-reliant, given the expected increase in materials.
demand for EVs.
47
7.2 Range Anxiety and Charging
Infrastructure
Range anxiety is medium as majority of the usage is intracity and average duty
cycles are 30-40kms per day; charging options like removable batteries further
reduces the range anxiety
Range anxiety is high as three wheelers are used for commercial purposes and any
downtime affects the revenue of the operator; >80% of the vehicles are purchased
on credit and owners are typically the drivers
Range anxiety is high as passenger vehicles are also used for inter-city travel and
extensive charging network is necessary; extreme situations like travelling in
remote areas affect the purchasing decisions
Range anxiety is high as buses are used for commercial purposes and higher
downtime is not appreciated; the concern aggravates for inter-city buses than
intracity buses
Vehicle Segment Fixed charging Battery swapping Removable battery
Two wheelers
Three wheelers -
Passenger vehicles - -
E-buses - -
Three types of charging are available in the market:
1) Fixed charging
Battery cannot be detached from the vehicle, and charging is done through the outlet in the vehicle.
Charging time becomes a deterrent in this type of charging; hence, DC fast charging has been
introduced. R&D is being carried out to reduce the charging time, which will probably result in ultra-
fast charging. However, ultra-fast charging comes with challenges like:
a. A vehicle needs additional cooling arrangements as more heat is generated with ultra-fast charging,
which could pose safety issues in tropical countries like India.
b. Need for Grade A battery cells to enable fast charging. Currently, low-cost Grade B cells are popular
among Indian manufacturers.
c. Infrastructural necessities like larger parking spaces as fast charging require parking the vehicles for
at least 30 minutes, while battery swapping takes less than five minutes.
Fixed charging is the potential path for larger vehicles with larger batteries, like passenger vehicles and
buses. However, some two- and three-wheeler companies are also focusing on it. Both home (slow
AC charging) and public (fast DC charging) charging options are being made available to customers
depending on the need.
2) Battery swapping
The discharged battery is exchanged with a charged one at a swap station. While the technology is
available for all types of vehicles, battery swapping is more appropriate for lower-capacity batteries
for two and three-wheelers. Battery swapping for passenger vehicles and buses does exist, but it
demands heavy investment into machinery, as the batteries cannot be handled manually. China’s Nio
and South Korea’s Edison Motors are working on battery swapping for passenger vehicles and buses.
3) Removable battery
Battery is detached from the vehicle and charged separately at home or office. Like battery swapping,
removable batteries are suitable for two and three-wheelers because of their smaller battery sizes.
Players like Hero Electric and Okinawa are focused on removable batteries. Battery fires could be a
potential concern in this type of charging, and recent events of battery fires have intensified the fears.
49
51
Two wheelers (2W) have been a great personal mobility solution to India’s limited penetration of affordable
public transport and ever-increasing cost of cars (4Ws). However, with rising fuel prices and increasing cost of
ICE scooters, ownership of personal 2Ws is becoming financially challenging. Owing to this, customers are now
looking for reliable and affordable personal mobility solutions. This new customer demand, along with increasing
environmental concerns and favourable government regulations, has created an urgency for electric mobility and
set the stage for the rapid adoption of EVs.
While EVs present a strong case for adoption, lack of adequate charging infrastructure, long charging times, and
high upfront costs make the adoption of electric mobility challenging at present. The two viable solutions for
India today are removable batteries for self-charging and Battery-as-a-Service (BaaS). BaaS is the 21st-century
electric mobility parallel to buying fuel from a fuel station. BaaS offers higher convenience and lower cost and it is
expected to be the dominant solution over removal batteries for self-charging.
We strongly feel that the mobility sector is ripe for disruption and that the adoption of electric vehicles, driven
by electric 2Ws, is inevitable. We expect EV penetration to go up from current 1.5% to atleast 10-20% in the 2W
segment by 2030.
- Anand Daniel, Partner, Accel
7.3 Planned Obsolescence/

Recycling
With the growth of EVs, high consumption of batteries is inevitable. Given that the agenda of using EVs
is decarbonization, entirely relying on natural resources harms the environment and increases the cost
of batteries due to limited resources. Therefore, developing a circular economy through recycling is a
potential solution to the problem.
Post usage in EVs, the end-of-life batteries can be used for a second life as power storage units. After
complete depletion of capacity, recycling needs to be done to extract the necessary metals like lithium,
cobalt, etc.
As EV adoption grows in India, the industry is looking toward recycling as a potential opportunity to counter
dependency on imports for battery raw materials. Some enablers for the growth of battery recycling
include:
Battery recycling policy: Government support is needed to encourage e-waste recyclers to focus on
battery recycling. As per recent reports, the government is working on framing the policy.
Extended Producer Responsibility: Regulations have been framed that mandate the producer of batteries
or OEMs to take responsibility for the recycling of batteries. The regulation needs stringent implementation
to ensure the timely recycling of end-of-life batteries.
Suitable battery design: Suitable battery design: Battery design must include aspects that make battery
recycling easy. Employing features like electrolyte flush and using nuts and bolts for interconnection of
cells instead of welding help in recycling.
lClaims to be the largest e-waste recycling company in the country

To invest INR 300 Cr in Li-ion battery recycling; built partnerships with MG,
l
Tata Motors, Hyundai etc.
Gravita is India’s largest battery recycling company with facilities to recycle

l
Lead Acid batteries and is entering Li-ion battery space
Have tie-ups with Amara Raja Batteries and HBL Power
l
Li-ion battery production and recycling start-up, Lohum cleantech is

l
operating a plant with capacity to recycle 100,000 packs per annum
15-20% of the company’s revenue is from recycling
l
We are at a historic point in time when EV 2-wheelers can be cheaper than the petrol 2-wheelers. This is likely to
lead to mass adoption of EV 2-wheelers which are expected to cross 80% of new 2-wheeler shipments by 2027
much ahead of the Govt’s target of 2030. Similarly, intra-city and inter-city freight market is expected to adopt EVs
both due to economics and Govt regulations. This opens up great opportunities for entrepreneurship across the
EV value chain covering battery management, swapping infrastructure, lending for purchase of EVs immediately
and re-sale of EVs a few years down the line.
- TC Meenakshisundaram (TCM), Founder and Vice Chairman, Chiratae Ventures
We at Ideaspring Capital have been bullish on the EV story in India. With rising fuel prices supplementing the
demand side and better battery technology along with improved charging infrastructure fuelling the supply
side, it was only a matter of time before EVs became mainstream in India. The mass adoption of EVs will usher in a
spurt in India’s economic growth previously seen with the advent of 4G technology in the telecom sector.
In 2019, we invested in a company called Numocity that offered a cloud-based digital platform- a middleware-
that allows consumers and fleet operators to use a network of fixed chargers or battery swapping solutions on a
“pay as you go” basis. The solution also included Grid Management. In May this year, Numocity became the first
acquisition in the Indian EV space by a global company viz., ABB. With the platform provided by ABB, it will only
be a matter of time before their solution becomes mainstream across all global charging stations. This deal also
validated our belief that with a sound business model and a scalable business, global product start-ups can be
established in India. We will continue to invest in innovative enterprise products in the Indian EV industry.
- Naganand Doraswamy, Founder & Managing Partner at Ideaspring Capital
53
INVESTMENTS IN EVS
08 (PE/VC FUNDING)
EV manufacturers like OLA Electric, EULER, and Ather Energy have attracted massive investments
(~US$550 million) in the last two years to develop better and safer EVs.
The technology is still in a nascent stage, and a lot of development is needed in terms of range, faster
vehicles, quick charging, and batteries maintaining composure under temperature. Euler is working on
e3W with higher payload, range and gradeability. Ather Energy is also funded by Hero Motor Corp to
develop e2W technology and vehicles.
The EV market has observed strong attention from PE/VC investors in India, with investments increasing from
US$181 million (2020) to US$1,718 million (2021) (recording an annual growth rate of 849%). Substantial
investments in the EV segment can help boost operations in last-mile delivery, which, if implemented
across scale, can generate operational savings for the fleet operators.
PE/VC investments in EV industry in India
Total investment in EV industry (US$ million) Total deals in EV industry
40
2000
33
1,718 30 29
1500
21 24
20
1000 20
421 666 10
500 5 7
258 3
13 8 181 0
0
6
2015 2016 2017 2018 2019 2020 2021 H12022
2015 2016 2017 2018 2019 2020 2021 H12022
Average investment in EV industry (US$ million)
600
506
400
200 164
103 143
13 8 59
0
3
2015 2016 2017 2018 2019 2020 2021 H12022
Total PE/VC investment in EV industry (by end-markets)
55
Total PE/VC investment in EV industry (by stages)
I expect temporary headwinds in mobility electrification such as short term increase in prices or eventual
withdrawal of subsidies. However, in the long term, EV adoption will accelerate aided by non fiscal government
policy support and favorable unit economics. Commercial fleets will lead the transformation followed by private
passenger vehicles.
- Akshay Gupta, Executive Director, Kotak Infrastructure Funds
Electrification of Vehicles is inevitable and over the next 10 years we will see 30-40% vehicles electric. The
infrastructure needed for electric vehicles will lag the deployment of vehicles by a few years. Hence, we at
Athera believe that the adoption will happen in phase. The commercial and cargo segments will be the first to
get electrified as they are most price sensitive and do not need extensive charging infrastructure. This will be
followed by passenger 2 wheelers and ultimately passenger vehicles. We have already invested in Euler motors
and are keenly following this space and will continue to invest more.
- Rutvik Doshi, Managing Director, Athera Venture Partners
CASE STUDIES:
09 SUCCESS STORIES
Ather Energy
Segment: 2W Manufacturing
Year Established: 2013
Founders: Tarun Mehta and Swapnil Jain
Total Amount Raised: USD 346.24 mn
HQ: Bangalore
Product
Ather Energy started with two variants 340 and 450 but later discontinued 340 due to poor demand. Later,
the company launched 450x, which replaced 450. The product competes with 125cc ICE equivalent scooter.
450x comes with:
lUpgraded battery back (21700 type cells vs 18650 in 450)

lNew PMSM motor with peak power of 6kW & torque of 26 Nm
lNew light weight chassis (vehicle is lighter by 3 kgs) on account of weight reduction
New Android based opensource touchscreen with Bluetooth, music streaming, improved touch
l
sensitivity etc.
450x is available in two software restricted modes

Plus mode – Performance and range are similar to Ather 450 (Range of 70km, 1km/min charging time &
l
three years battery warranty)
Pro mode – Upgraded range of 85 km, WARP mode (0-40 kmph in 3.3 sec compared to 3.9 sec in plus
l
mode); 1.5 km/ min charging time & 3 years battery warranty
Ather provides IoT features like on-board diagnostics, OTA updates, ride statistics etc. on 450x, which are
on-par with the successful global electric two-wheeler models like Gogoro, Piaggio, Kymco etc.
57
Expansion plan:
Annual Manufacturing Capacity Charging Grid Expansion

15,00,000 8,000
10,00,000 6,500
10,00,000 6,000
4,00,000 4,000
5,00,000 1,20,000 2,000 220 720
0 0
2021 2022 2023 2021 2022 2023
Annual Manufacturing Capacity Charging Grid Expansion
Product Development Philosophy:
lAther scooters have been designed grounds-up keeping the Indian

consumer in mind; the body panels feature part-steel and part
aluminium design, which not only keeps weight low but also provides
Styling strength & rigidity
lSeveral elements have been thought of differently from the
conventional scooters for ex. the pillion footrest, side-stand, rear view
mirrors, seat storage etc.
lAther developed their own battery pack with focus on power output,
range, fast charging and water resistant capabilities etc. and cells are
manufactured by LG Chem, and battery is assembled in-house.
Engineering lThe PMSM motor, controller & transmission used in 450 is designed
and developed in close association with manufacturing partners/
suppliers.
lSourcing of the components was initially a mixture of domestically

manufactured products and imported but with growth in local EV
supply chain, proportion of domestically manufactured component is
Sourcing expected to increase.
lAther has partnered with Sanmina, a California based integrated
manufacturing solutions company for production of BMS, charging
system and dashboard.
lAther’s philosophy is to provide a range which could be achieved

in varying riding conditions; provides 3 different driving modes by
Technology & varying speed and available torque.
Performance lDashboard comes with a 7-inch IP65 rated capacitive touchscreen

with on-board navigation, provides feedback on vehicle health,
charging status, ride patterns etc.
lAther’s strategy is to be one-stop solution to the vehicle ownership

and provides
All-round o Charging option (Ather Dot), public charging (Ather Grid) and
solution vehicle servicing through different subscription plans for the users to
select themselves.
o OTA (over the air updates) for software, performance, firmware etc.
Sona Comstar
Segment: Auto Components
HQ: Gurugram
Company
A premier manufacturer of transmission systems such as driveline gears, differential assembly and e-drives
for e2Ws, e3Ws, e4Ws and electric LCVs.
Currently runs 30 EV programs across North America, Europe, Asia and India
l
Has five programs scheduled for India for their yet-to-launch “Enedym” series of motors for use in electric
l
bikes, autos and LCVs
Revenue share from BEVs has grown by 19x over the last three years,
l
The global share of starter motors for the company increased from 2.5% (2019) to 4.6% (2021)
l
ICE dependence continues to drop from 24.8% (FY21) to 17.6% (FY22)
l
Company revenue has grown at 34% CAGR from 2020 to date
l
Six manufacturing plants, three R&D offices across the country, and one tool and die shop for molds
l
To concentrate on the PHEV, MHEV, and BEV segments in India (range of products to include motors
l
and drive trains)
YULU (Fleet Operator)

Segment: Bike Sharing
Founder: Amit Gupta
HQ: Bangalore
Company
Yulu currently provides first mile, last mile connectivity and short trips from the public
transport stations.
Clusters (Collection) of bikes are kept at points near bus stops and railway stations to help
l
customers reach their destination. Easy charging points and battery swap help quick turnaround
time for vehicles to be ready for use.
Bikes are relocated to high-demand zones; repair and maintenance are done at regular intervals
l
to ensure bikes are in top condition; the company has dedicated staff to recover lost or stolen
vehicles.
Operations are fully automated and help the company cater to the demand.
l
Yulu also helps in employing people who don’t have a job by providing training
l
at the Yulu Academy.
Mobility as a Service (MaaS)- Yulu Dex was launched especially for delivery
l
executives in the B2B2C model. Amazon, Flipkart, India Post, Swiggy and
Zomato are some of the major consumers of this service.
Yulu will also venture into the battery-as-a-service (battery
l
swap, charging stations) via a JV with Magna. Yulu provides
the demand, operational expertise, software, branding, and
government relationships, whereas Magna will provide 100%
funding and may design and manufacture 48V batteries and
charging/swap stations.
59
Charge+Zone (Charging Station Infra)
Segment: Bike Sharing (Fleet Operator)
Founder: Kartikey Hariyani
HQ: Vadodara
Company
Chargezone plans to set up 1 million unmanned EV stations by 2030.
l
Key differentiator is the technology platform, “over the air” flow of data, IoT backed applications - which
l
will help in the remote control of “unmanned charging stations.”
The energy distribution system helps to run the DC Charging stations, which are monitored by the local
l
controller; the charge for top-up is calculated via the Charge+zone mobile app.
Chargezone also plans to enter the Battery Swapping space. It has an advanced battery tracking system,
l
geo-fencing, and remote kill to ensure the batteries are not stolen or misplaced. Currently available only
in Delhi NCR for e3Ws.
Caters to the B2B sector- fleet operators, corporates, ride handling and last-mile delivery companies.
l
Chargezone currently manufactures two types of chargers: an AC type 2 max Charger and a mini charger
l
for places where space is a constraint.
lCurrently serving 2000 EVs daily, with about 1000+ chargers across 15 cities in the country.
lThe company is currently planning the electrification of 10000km of national highways/state highways.
Currently provides charging support to a network of 125 electric buses of Ashok Leyland across three
l
cities (Ahmedabad, Patna and Chandigarh).
There are great benefits EVs offer - especially for the commercial / B2B segment. The RoI is much quicker. EVs have
taken off in local delivery, city buses, and commercial goods carrier segments and my guess is short to medium
distance Cabs are the next.
For personal vehicles, affordable 2W and 4W have taken off and my guess is well rounded, premium EVs will
increase the overall appeal and help make EVs mainstream. Range anxiety is still real though and it will take time
before we can get there. There needs to be an infra (be it charging stations or on demand charge delivery) to give
the early adopters that peace of mind and spur word of mouth.
ICEs have been around and people learnt to live around them over time. EVs are a new technological beast
for us, also because of a lot of ‘jugaad’ EVs in the market - people just don’t know how to manage them safely
and effectively. There is a huge need for customer awareness - both B2B and B2C. Like the ‘investor education’
program the MF industry ran for retail investors, funded EV companies should come together and at least correct
the narrative and improve understanding of EVs. They can start with DOs and DONTs (around charging batteries
in typically Indian conditions, optimum charging methods to maximise life of the expensive battery, risks of
charging at low-rated sockets or unstable power supply, right way to store EVs to prevent battery degradation);
opening up charging infra; industry level initiatives to run EV/battery health check camps; push for some
standards and protocols etc.
One aspect no one is talking about is battery replacement costs that an EV will have to endure every 5-7 years,
depending on capacity degradation. These could be >50% of residual vehicle value, even after assuming steady
battery price drops.
- Ashish Taneja, Partner, growX ventures

All the major OEMs across the globe have announced plans to build EVs and gradually reduce its ICE
counterparts. However, there are various considerations that are likely to impact EV adoption. Constraints
pertaining to charging infra, tech scalability, battery range, software etc. continue to plague the industry. Also,
the availability of the battery’s core component – lithium, capability of manufacturing larger battery packs as well
as chip manufacturing is concentrated within a few countries with a major share currently being held by China.
Recycling of these batteries and proper disposal is yet another area which needs to be refined to make EVs truly
sustainable. Further, EV buyers also face a range of financing challenges, such as high interest and insurance
rates, low LTV ratios, and limited specialized financing options. Moreover, mushrooming growth of EV startups
fuelled by Govt. incentives and seemingly diluted norms for EVs has also led to multiple players enter the industry
with no existing domain knowledge, thus increasing the occurrence of fire incidents manifold. Thus, to scale EV
adoption in India, we need to mitigate customer pain points, set up in-house capabilities and ensure adequate
reserves are at our disposal for creating a comprehensive EV ecosystem.
With EV transformation, this ecosystem is going to see considerable change and a major section of this ecosystem
needs to be rebuilt, re-skilled and enhanced to tackle future requirements of EVs. Since EV is still at a nascent
stage and an evolving industry in India, we at BlackSoil have taken a conservative approach & invested in just one
EV deal – a 100% EV ride-hailing platform operating in Delhi NCR. Having said that, we are cautiously optimistic
on this sector & undertaking further evaluation of only those companies which we believe are serious contenders.
Since we are bullish on this sector, we have continued to increase our awareness & knowledge base, as we have
looked at 30+ EV deals seeking various forms of funding such as venture debt, dealer / customer financing, seed
funding etc.
- Ankur Bansal, Director & Co-Founder, BlackSoil
61
POLICY AND
10 REGULATIONS
10.1 Current Indian Policy Environment for EVs

Climate change has led to a shift in global climate policy which Sanctioning projects under the FAME II scheme;
l
requires the world to adopt a low carbon economy, thereby saving Modifying coverage of various components and sub-components
l
the planet from the adverse impact of climate change. of the scheme;
Modifying limits of the fund allocation under the scheme;
l
The Constitution of India under various Articles provides for the Review of demand incentive under the scheme, annually;
l
state to direct its policies towards securing the ownership and Review of vehicle-wise capping of incentive, annually; and
l
control of the material resources of the community to conserve Deciding other scheme parameters for smooth implementation.
l
natural resources, protect the natural environment and subserve the
common good. Around 20 states in India have already come up with (b) Ministry of Road Transport and Highways
either a draft or final state level EV policy, these state policies overall The MoRTH is responsible for formulating policies and regulations
aim to promote India’s transition from ICE to EVs. Improving the air pertaining to road transport. It helps in formulating non-
quality issues, mitigating climate change, reducing dependence financial incentives for promoting EVs by provisioning for parking
on oil imports and developing the EV industry are some common infrastructure, priority lane access, etc.
objectives of the policies published by the states. Almost all the state
policies prioritised two-wheeler and three-wheeler vehicles. In February 2021, the MoRTH launched the ‘Go Electric’ campaign of
the BEE to promote and spread awareness on electric mobility and
Regulators / Agencies: EV charging infrastructure with a motive to lead India towards a clean
48% of Indian cities in 2021 exceeded 10 times the permissible ecosystem and to combat adverse climate changes.
limits mentioned in the WHO air quality guideline, as per the World
Air Quality Report released by IQAir. . Even with national and state Under the MoRTH, the ARAI carries out research and engineering
declared lockdown during the Covid-19 pandemic crisis in 2020, 36 services on its behalf. One of the functions of the ARAI is to develop
cities out of 50 cities which had unhealthy levels of air quality were standards for vehicles and its components. These standards are
from India. marked as AIS-XXX standards. Till date about 220 standards are
published by the ARAI. AIS 138-Part 1 and Part 2 notified by the
India has taken a leap towards a clean energy-based future as it is ARAI specify the charging requirements (AC and DC) for all EVs (two-
evident from the changes in the policies of the governments with wheelers, three-wheelers and four-wheelers) with the exception of
respect to environmental protection. trolley buses, rail vehicles and off-road industrial vehicles.
(a) Ministry of Heavy Industries and Public Enterprises (c) Ministry of Power
Under the MoHI&PE, the policy and implementation measures for The MoP formulates policies, plans and processes projects for
adoption of EVs in India are led by the DHI. In order to achieve the investment decision, monitors the implementation of power projects,
objectives of reduced emission and energy security under the NMEM, trains and develops manpower and the administration and enacts
DHI had notified the FAME scheme in March 2015, with the following legislation regarding the development of the power sector. The MoP
four major focus areas: technology development, demand incentives, has issued guidelines for implementation of charging infrastructure
charging infrastructure, and pilot projects. under which the BEE has been entrusted with the role of the CAN.
The CEA under the MoP is responsible for preparation of standards
In March 2019, MoHI&PE notified the FAME–II scheme, where related to safety of EVSE.
the primary role of the ministry is to develop a framework for
implementation of the FAME scheme.
(d) Ministry of Housing and Urban Affairs
The NAB is an operating agency for the implementation of FAME The MoHUA has played a key role in amending building bye-
schemes. It monitors state-wise progress and maintains the web laws in order to fast tract the development of charging facilities
portal for publicising data related to the schemes. Further, PISC is an in commercial and residential building complexes. The MoHUA
inter-ministerial panel, setup by the DHI for monitoring, sanctioning notified that the residential and commercial complexes will have to
and implementation of projects under the FAME-II programme in allot 20% of their parking space for EV charging facilities. It has also
March 2019. The PISC is chaired by Secretary of MHI with members amended the ‘Urban and Regional Development Plans Formulation
comprising of the CEO NITI Aayog and secretaries, financial advisors and Implementation Guidelines– 2014’ to include the formulations of
and directors of various ministries and association. The PISC plays an norms and standards for charging infrastructure in city infrastructure
important role in carrying out the following functions: planning.
18 https://www.iqair.com/world-air-quality-report
19 https://www.iqair.com/in-en/world-most-polluted-cities
(e) Ministry of Finance primary union ministry connected with the ’National Electric Mobility
To support the ‘Make in India’ initiative of the GoI, the Ministry of Mission Plan 2020’ initiative. The ministry also published the Draft
Finance in 2019 rationalised the customs duty for all categories of Battery Waste Management Rules, 2020 (“Draft Rules”) to strengthen
vehicles, battery packs and cells.. It also reduced the GST rates on the ecosystem for handling and disposal of batteries across India. The
Draft Rules aim at creating an effective mechanism for the disposal of
the purchase EVs from 12% to 5% and announced income tax rebate
batteries and ensuring public safety. The Draft Rules also aim to hold
of approx. USD 1965 on purchase of EVs. More recently in 2022,
accountable every player in the value chain including central and
the Ministry of Finance has tripled the allocation under the FAME
state authorities. However, the Draft Rules have not been notified yet.
scheme and for the Financial Year 2023, the allocation is expected
to be around USD 381 million. Due to considerable interest in the (g) Ministry of Science and Technology
field of EVs, the union government’s total expenditure under the A ’Technology Platform for Electric Mobility (TPEM)’ has been formed
FAME scheme is to be around USD 612 million between Financial by MoST which is primarily funded by the MoHI&PE. The MoST is
Year 2019 and Financial Year 2023. The demand for EVs is already playing a key role in forming an electric mobility standardization
soaring with government registering close to 311,000 EVs in 2021 in roadmap for India. The objectives under this scheme include
comparison to 119,000 EV registrations in the previous year. Further, developing technologies and products that specifically address the
it has been recommended that EV loans should be included in the needs of the Indian market and to develop a competitive edge in
priority lending sector to make borrowing for the purchase of EVs some of the technologies of electric mobility. TPEM is also aimed
easier. There has also been a recommendation to reduce GST from at creating centers of excellence and testing facilities; formation
the present slab of 18% to 5%. of industry technology consortia to be led by automotive and
component companies; and to encourage innovation program to
(f ) Ministry of Environment, Forest and Climate Change support scientific research by academia and laboratories and support
The Ministry of Environment, Forest and Climate Change is the new product development by private entities.
10.2 Legal Issues, Policy and Regulation In India

10.2.1 Legal landscape & foreign investment the world industry, India is a relatively new market and the extant
India has always upheld its commitment towards the protection and laws applicable to EVs are still in the process of developing through
sustainability of environment which inter alia includes reduction of coordination and cooperation between various stakeholders.
emission of greenhouse gases through a relook at its automobile
industry. India is a signatory to the ‘Paris Agreement’ which has been We have discussed the various policies in place in India that contribute
signed by the members of UNFCCC to combat climate change and to a cohesive legal framework for faster adoption of EVs hereunder.
to accelerate and intensify the actions and investments needed for
a sustainable low carbon future at COP 21 in Paris on 12 December (a) Automotive Mission Plan 2006-16 (AMP I)
2015. Under the Paris Agreement, India has committed to reduce AMP I was launched in January 2007 with the vision to make India
its greenhouse gas emissions by 2030 which was a significant step the destination of choice in the world for design and manufacture of
in combating global warming by a coalition of developed and automobiles and auto components with output reaching a level of
developing nations. approx USD 145 billion accounting for more than 10% of the GDP and
providing additional employment to 25 million people by 2016. AMP
The UNFCCC executed the Paris Agreement to address concerns I provided incentives for development of infrastructure, including
on greenhouse gasses, their emissions and mitigation. The Paris that of EVs like incentives related to investments, exemption from
Agreement aims to stop increase in global average temperature payment of duties, etc.
and reduce the risk of climate change. As per the terms of the Paris
(b)Automotive Mission Plan 2016-26 (AMP II)
Agreement, a signatory has to determine and plan measures to
AMP II provides for a plan to provide adequate incentives to ensure
mitigate climate change and global warming and share reports
expeditious development of indigenous EV component designs and
regularly on the same. To perform its obligations under the Paris
development of manufacturing industry for hybrid vehicles and EVs
Agreement, India has undertaken several measures which, among
in India. The main objective of AMP II was to establish the automotive
other things, include the vision to completely shift from fossil
sector as the largest creator of employment opportunities and as a
fuel based traditional vehicles to EVs. The Prime Minister of India,
major contributor of the ’Skills India’ programme.
Narendra Modi, has reiterated that India was well placed to achieve
its targets under the Paris Agreement before 2030. The Prime Minister
(c) National Mission for Electric Mobility (2011)
has also committed to (i) achieve net zero carbon emissions by 2070,
In light of fast dwindling petroleum resources and their impact on
(ii) increase the non-fossil fuel energy capacity to 500 GW by 2030,
the environment, the Government of India has recognised the need
and (iii) ensure India fulfils 50% of energy requirements through
to gradually shift to more efficient and cleaner technologies in the
renewable energy by the year 2030.
automobile industry. In March 2011, the NCEM and the NBEM were set-
up by the DHI to promote electric mobility and manufacturing of EVs
At COP 21, India committed to reduce its carbon footprint by 33- in India on a mission mode approach as ’National Mission for Electric
35% by 2030 from 2005 levels and to increase the share of non-fossil Mobility’. The NCEM functions as the apex body in the Government of
fuels-based electricity to 40% by 2030. To fulfil its commitment India for making recommendations for such matters with the NBEM
under the COP 21 and other international conventions, India has assisting the NCEM at a secretary level. The NAB was also formulated as
been proactively establishing a legal framework for efficient and the technical advisor and secretariat for both the NCEM and the NBEM.
faster adoption of EVs. It is important to note that compared to The NCEM comprised of ministers from the key central ministries
20 Status quo analysis of various segments of electric mobility and low carbon passenger road transport in India available at https://www.niti.gov.in/sites/default/files/2021-04/
FullReport_Status_quo_analysis_of_various_segments_of_electric_mobility-compressed.pdf
21 https://heavyindustries.gov.in/writereaddata/Content/Automotive%20Mission%20Plan%20(2006-2016).pdf 63
and departments, eminent representatives from the industry and Structure of subsidies was required to be revised based on
academia and chaired by the MoHI&PE. The NBEM is constituted of powertrain technology with a focus to incentivise cleaner
the secretaries of the stakeholder central departments and ministries technologies and to establish parity across technologies. While
along with representatives from the academia and industry. the implementation plan was off-taken, the progress of the
implementation of FAME I was slow and limited.
(d) National Electricity Mobility Mission Plan (2020)
The NEMMP envisions the roadmap for faster adoption of all kinds (iii) It was also realised that unaccounted segments of EVs like e-three
of hybrid vehicles and EVs (xEVs) and their manufacturing to achieve wheelers, e-rickshaws, etc., in relation to which no support was
increased sales of xEVs across India. This is expected to result in a planned could have the potential to drive the aims of the scheme
proportional increase in fuel savings. The NEMMP 2020 aims to further.
provide affordable and environmentally sustainable transportation,
to increase the national fuel security, and to achieve global (f ) FAME II (2019-present)
leadership in manufacturing in the automotive industry. The NEMMP Based on the main findings of the FAME I scheme along with
2020 provides strategies for expeditious adoption of EVs that include comments from various stakeholders, the DHI notified Phase-II
measures like demand generation, supply related interventions of FAME (“FAME II”) on 08 March 2019, with the approval of the
encouraging domestic manufacturing, R&D, infrastructure support, Government of India with an outlay of approx. USD 1,311 million
fuel efficient, and creation of awareness. The NEMMP 2020 had set an to incentivize demand for EVs by providing upfront subsidies and
ambitious target to achieve 6-7 million sales of hybrid and EVs by the creating EV charging infrastructure. FAME-II commenced with effect
year 2020. However, it is realised that to achieve the same there needs from 01 April 2019 and was rolled out for over a period of 3 years
to be a radical modification of the existent charging infrastructure which was further extended till 2024 . After rollout of FAME I, it was
to support the acceptance of EVs in the Indian market through realised that to achieve the objectives of FAME, sufficient charging
governmental support and coordination of various stakeholders. infrastructure was required to be established to allow for faster
adoption of EVs.
(e) FAME I (2015-2019)
Under the NEMMP 2020, the DHI notified the Faster Adoption and Under FAME II, 1 million electric two-wheelers, 5,00,000 electric
Manufacturing of (Hybrid &) EVs in India (“FAME”) scheme in the three-wheelers, 55,000 electric cars and 7,090 electric buses are to be
year 2015 to promote manufacturing of electric and hybrid vehicle supported through subsidies. Allocation of approx USD 131 million
technology and to ensure sustainable growth of the same. has also been made under FAME II for provision of EV charging
stations. This policy also supports establishment of charging stations
The Phase-I of FAME (“FAME I”) was initially launched for a period of in the larger cities, other cities with over a million in population, smart
2 years, commencing from 01 April 2015, which was subsequently cities, and cities in hilly states across the country for ease of access.
extended from time to time with 31 March 2019 being the last Implementation of the FAME-II scheme was undertaken through –
extended date. FAME I was implemented through four focus areas (i) providing incentives on demand for EVs, (ii) establishment of a
namely, (i) Demand creation - through upfront reduction of cost of network of charging stations, and (iii) publicity, administration of
EVs and hybrid vehicles; (ii) Technology platform - by sanctioning information, education on EVs, communication with stakeholders
grants for R&D related to EVs and EV components; (iii) Pilot project and similar awareness campaigns.
- through grants to build awareness and increase utilisation of eco-
friendly vehicles; and (iv) Charging infrastructure - including grants FAME II was amended in June 2021 in accordance with the feedback
for public charging infrastructure components, revision of existing from the industry and users and based on the lessons learnt during
legal framework to enable roll out of infrastructure, and evaluation of the onslaught of the novel coronavirus in India especially with respect
designs for optimal charging infrastructure. to the automobile industry. To prioritize faster adoption of EVs by
lowering costs, FAME II scheme was amended to increase demand
All vehicle segments including two-wheelers, three-wheelers auto, incentive for two-wheelers from approx. USD 131/kWh to approx.
passenger four-wheeler vehicles, light commercial vehicles and USD 196/kWh with maximum cap increased from 20% to 40% of the
buses were incentivised to create a market for EVs in India. Demand cost of vehicles. For three-wheelers also, methods will be adopted to
incentives were provided to buyers of EVs by way of upfront reduced bring the upfront cost at an affordable level. Cities with more than
purchase price, sanction of grants for specific pilot projects. R&D of 4 million population, i.e., Ahmedabad, Bangalore, Chennai, Delhi,
technologies and public charging infrastructures, etc. During FAME I, Hyderabad, Kolkata, Mumbai, Pune, and Surat, will be focused on for
about 2,78,000 xEVs were supported with a total demand incentive electric buses. It is expected that such incentives will notably reduce
of approximately USD 45 million. Under this scheme, various cities the purchase price of EVs leading to an upliftment in buyer sentiment
and states have also been sanctioned with 465 buses. Under FAME I, and creating a spur in market demand. After amendment of FAME
the demand incentive amount was determined for each category of II in June 2021 sale of electric two wheelers have increased to over
EVs (i.e., vehicle, technology, battery types) taking into account the 5000 per week from 700 per week before such amendment.
principles of total cost of ownership, cost of maintenance, pay-back
period on account of fuel savings, etc. (g) Charging Infrastructure
However, an evaluation of the FAME I phase by an independent The MoP issued the guidelines and standards on‘Charging Infrastructure
consultant was presented in writing in the Lok Sabha by the erstwhile for Electronic Vehicles’ on 14 December 2018 which were recently
minister of MoHI&PE, Arvind Ganpat Sawant, in March 2019 which amended on 14 January 2022. Under the said amendment, the MoP
concluded the following as the main findings of the scheme: notified a major overhaul of the existing guidelines in suppression of
all previous ones. The revised guidelines aim to enable faster adoption
(i) Notable achievement of FAME I was the creation of awareness of EVs, provide affordable tariffs for charging station operators and EV
regarding clean mobility in all discussions between stakeholders; owners and support the establishment of charging infrastructure for
EVs. The new guidelines provide for charging of EVs at residences and
(ii)
The key parameters of fuel savings and carbon dioxide offices through existing electricity connections. Any entity is free to
reduction was below the targets proposed under FAME I. establish PCS provided it fulfils the standard and protocols laid down by
22 Press release by the Press Information Bureau, Government of India on Setting up of National Mission for Electric Mobility by the Ministry of Heavy Industries and Public
Enterprises dated 31 March 2011 available at https://pib.gov.in/newsite/PrintRelease.aspx?relid=71403
23 NEMMP 2020 available at https://heavyindustries.gov.in/writereaddata/Content/NEMMP2020.pdf
24 Press Information Bureau report on FAME India Scheme dated 09 July 2019 available at https://pib.gov.in/PressReleasePage.aspx?PRID=1577880
the MoP, the BEE, and the CEA. On application for electricity connection approximately USD 0.013 (i.e., INR 1)/kWh payable to the land-owning
by a PCS, the distribution licensee shall release connection for such PCS agency by the PCS entity on a quarterly basis.
as per the timelines under the Electricity (Right of Consumers) Rules,
2020. Additionally, any PCS can procure electricity from any generating
The PCS will be rolled out in two phases: (a) Phase I for 1 to 3 years in
company through open access. The revised guidelines also state the
all megacities with population more than 4 million and (b) Phase II
requirements for PCI including requirements for PCI for long range
between 3 to 5 years in big cities, state capitals, and headquarters of
and/or heavy duty EVs. The guidelines also require the setting up of at
UTs. The BEE is appointed as the CAN for PCI rollout and every state
least one charging station in a grid of 3x3 km and one charging station
may nominate its own nodal agency for the same.
every 25 km on both sides of the highways. In addition, for long range
It is interesting to note herein that the DST, the Office of the PSA to
and/or heavy duty EVs, at least one fast-charging station with charging
the Government of India, along with NITI Aayog is developing the
infrastructure at every 100 km one on each side of the highways is
Indian standard for EV charging infrastructure which shall be formally
required to be established. The tariff for electricity supply to PCS will be
issued by the BIS.
a single part tariff and will not exceed the average cost of supply until
31 March 2025 and this tariff shall also be applicable for the battery
charging stations. The state governments have been empowered to fix (h) EV Policies adopted by Indian States
the ceiling of service charges to be levied by the charging stations. The Indian states have either adopted or are in the process of adoption of
revised guidelines also provide for land available with the government EV policies based on the policies notified by the central agencies. We
or public entities to be made available to a government or public have inserted hereunder a comparison of the aims and objectives of
entity to install PCS on a revenue-sharing basis at the fixed rate of the policies drafted by a few states.
STATE EV POLICIES
Sl. No. State Status Features
1. Andhra Electric Mobility The Government of Andhra Pradesh has identified electric mobility as a sector
Pradesh Policy 2018-2023 that will drive growth in the state in the years to come. It aims to be a leader
adopted on 08 in building a sustainable infrastructure for transports by promoting a friendly
June 2018 ecosystem for electric mobility in the state.
Under the policy , subsidies are planned to be provided for manufacturers of EV
like subsidies on capital, supply of water, reimbursement duties on purchase or
lease of land for industrial use and for lease of lands/shed/building, mortgages
and hypothecations, reimbursement of cost of power and other duties on
electricity, other tax incentives, marketing incentives, etc., to create demand in
the state for EVs, private charging stations are also allowed financial incentives.
Andhra Pradesh aims to:
(a) C
onvert 100% of the state bus fleet comprising over 11,000 buses into
electric buses by 2029, with the first phase being conversion of 100% of the
bus fleet in top 4 cities in the state by 2024;
(b) P hase out all fossil fuel based commercial and logistics vehicles in top 4 cities
by 2024 and in all cities by 2030;
(c) C
onvert all forms of vehicles utilised by the government to EVs by 2024.
2. Delhi Delhi Electric The primary objective of the policy is to make Delhi the EV capital of India and
Vehicles Policy, increase the pace of EV adoption across all types of vehicles, especially in the
2020 notified on category of goods carriers, public/shared transport vehicles and two wheelers.
07 August 2020
The policy aims to increase adoption of Battery EVs (BEVs) so that they
contribute to 25% of all new vehicles registered in the state by 2024. This is
being undertaken to improve Delhi’s environment by bringing down emissions
from the transport sector. This will also put in place measures to support the
creation of jobs in the NCT of Delhi.
The policy provides for (a) financial incentives, for example, incentives related
to purchase , incentives, loans availed for EVs, (b) waiver of road tax and
registration fees, (c) establishment of a wide network of charging stations and
swappable battery stations, and development of publicly owned database of
the same, (d) constitution of state electric vehicle board and a dedicated EV
cell, and development of an intensive public outreach programme for creating
awareness about EVs and key elements of the policy, (e) setting up of skill
centres that will provide training related to jobs in the EV sector, (f) setting up
of facilities for recycling of batteries of the EVs, (g) creation of ‘State EV Fund’,
funded through levy of additional taxes, cess, fee etc., on inefficient or polluting
vehicles.
28 A powertrain is an assembly of every component that pushes a vehicle forward.
29 Notification No. S. O. 2526(E) dated 25 June 2021 by the Ministry Of Heavy Industries And Public Enterprises (Department Of Heavy Industry). 65
3. Gujarat Gujarat State The policy aims to position Gujarat as a leader in the adoption of EVs and to
Electric Vehicle establish an environment to encourage development of the EV market.
Policy 2019
The policy provides for the installation of charging stations at designated
parking spaces, reserved parking/charging facility for EVs, charging points
in office parking areas for government employees and visitors, facilitation of
private charging infrastructure facilitated through DISCOMS.
4. Karnataka Electric vehicle The policy aims to make Karnataka the preferred destination for development
and Energy of electric mobility, to promote conducive manufacturing ecosystem and to
Storage policy develop human capital to meet the needs of the industry.
2017
The objectives are (a) investment of USD 4064 million and creation of
employment opportunities for 55,000 persons, (b) development of R&D
in electric mobility, (c) transition to EVs from ICE. The policy adopts special
initiatives for EV manufacturing, support for charging infrastructure, support for
R&D and skill development along with other incentives and concession.
5. Kerala Electric Vehicle The policy aims to achieve the following targets (a) 1 million EVs on road by
Policy approved 2022 and (b) pilot fleet of 200,000 two-wheelers, 50,000 three-wheelers, 1000
on 10 March goods carriers, 3000 buses and 100 ferry boats by 2020. It also aims to attract
2019 investment opportunities in manufacturing of EV components, long term EV
manufacturing and centres of excellence in the EV value chains. The policy
provides for managing electrical grid, upgrading bus transport fleets, and other
strategy initiatives like addressing the gap in visibility of EVs, creating charging
infrastructure and EV manufacturing in the state, creating awareness through
promotion of EVs, etc.
6. Madhya Madhya The primary objective of the policy is to promote sustainable electric mobility
Pradesh Pradesh Electric and improve the air quality of the state by bringing down emissions from
Vehicle Policy transport sector. The plan is to undertake the above through rapid adoption of
2019 dated 01 EVs in a manner so that 25% of all new public transport vehicles registrations by
November 2019 2026 may be of EVs.
The policy proposes to achieve its objectives by emphasising on: (a) driving
EV Adoption; (b) EV type incentive structure; (c) manufacturing of EV and its
components; (d) charging infrastructure; (e) recycling ecosystem – battery and
EVs; (f) demand creation for EVs; and (g) R&D.
The policy also provides for incentives for two-wheelers, shared e-rickshaws,
electric autorickshaws, electric good carriers (three-wheelers), electric cars and
buses, and other vehicles.
7. Maharashtra Electric Vehicle The policy targets to: (a) Increase number of EV registered in Maharashtra to
Policy 2018 5,00,000; (b) Generate an investment of approx. USD 3277 mission (INR 25,000
crores) in EV and in manufacturing of EVs, its component, batteries (including
assembly enterprises) and charging infrastructure equipment in the state; and
(c) Create jobs for 1,00,000 persons.
The above targets are implemented through promotion of EV technology, fiscal
and non-fiscal incentives, creation of dedicated charging infrastructure through
subsidization of investment, and promotion of R&D and establishment of R&D
centres across the state.
8. Tamil Nadu Tamil Nadu The policy envisions (a) the attraction of Rs 50,000 crore investment in EV
Electric Vehicle manufacturing, (b) creation of a comprehensive EV ecosystem in the state and
Policy 2019 (c) creation of 1,50,000 new jobs through such investment.
The conversion from traditional vehicles to EVs is being encouraged through
fiscal concessions and creation of charging network. The policy proposes
conversion of (a) all auto-rickshaws in 6 major cities of the state to EVs within a
span of 10 years, (b) conversion of all taxis and app-based transport operators
and aggregators in the 6 major cities to EVs within a span of 10 years, (c)
replacement of around 5% of the state buses to electric buses every year and
introducing around 1000 EV buses every year.
The policy also provides for demand side incentives for two-wheelers, three-
seater autorickshaws, transport vehicles, light goods carriers and private cars,
incentive and support for charging infrastructure, supply side incentives for
promotion of EV manufacturing among other provisions.
30 Press Release by Press Information Bureau dated 22 December 2021 available at https://pib.gov.in/PressReleasePage.aspx?PRID=1784161
33 Notification No. 12/2/2018-EV (Comp. no. 244347) dated 14 January 2022 by the Ministry of Power.
34 The Electricity Act, 2003 defines a distribution licensee in Section 2 (17) to mean a licensee authorised to operate and maintain a distribution system for supplying electricity to
the consumers in his area of supply.
9. Telangana Telangana The objectives of the policy, among others, is (a) to increase the adoption of EVs
Electric Vehicle in public transportation, two-wheeler and three-wheelers, four-wheelers, light
and Energy commercial vehicles and shared transportation to reduce total cost of mobility,
Storage Policy (b) to attract investments worth USD 4.0 billion and create employment
2020-2030 for 120,000 persons by year 2030 through EVs in shared mobility, charging
infrastructure development, and EV and energy storage manufacturing
activities, (c) generate demand for battery storage solutions through EV
adoption and supply side incentives for battery manufacturing, and (d) generate
demand for battery storage solutions by EV adoption incentives and supply side
incentives for battery manufacturing.
10. Uttar Uttar Pradesh The policy provides for fiscal and non-fiscal incentives to attract investments to
Pradesh Electric Vehicles promote electric mobility in the state. The policy also promotes early adoption
Manufacturing of EVs in the state as well as create demand in the sector .
and Mobility
The policy encourages the use of hybrid EVs and plug-in EVs during the
Policy 2018
transition phase. It targets 2,00,000 charging (fast, slow and swapping) stations
by 2024, 1 million EVs on the road in all categories and 70% EVs in public
transport by 2030. The state offers incentives such as capital interest subsidy,
infrastructure interest subsidy, industrial quality subsidy, exemption from stamp
duty and electricity duty, SGST reimbursement, etc., for EV manufacturing units -
large, medium, small and micro alike. It also has a single window system in place
for all approvals for EV and battery manufacturing units.
DRAFT STATE EV POLICIES

11. Bihar Draft Bihar The policy provides for incentives to industries in the state of Bihar. The policy
Electric Vehicle however, deems EV manufacturing and allied activities in the EV sector as non-
Policy 2019 priority sector and thus, an amendment has been proposed to include EVs as a
priority sector under the policy.
The mission of the state policy, inter alia, is to supplement the Government of
India in its mission to bring 100% e-mobility by 2030, upgrade rickshaws to
100% electric ones by 2022, create fast charging stations at every 50 km on state
highways/national highways, attract on-ground investments of approx. USD 327
million and create direct empowerment opportunities for 10,000 persons in the
state.
The policy also proposes incentives for EV manufacturing, EV charging and
EV buyers.
12. Chandigarh Draft EV Policy As per the draft EV Policy 2019, the UT of Chandigarh aims to (a) register only
2019 and new EVs in the city after 2030; (b) have an all-EV fleet of public buses by 2027, (c) all
EV policy to be EVs of government fleet by 2025, (d) all electric autorickshaws, corporate fleets,
notified in April cabs and school busses by 2030; and (e) 1000 public chargers by 2030 through
2022 monetary incentives for buyers, free parking slots in government parking. This
will also include charging infrastructure for EV owners in commercial, residential
and educational institutions, incentives and assistance for EV charging, battery
recycling incentives, etc.
Subsidy can also be availed for battery operated vehicles for limited number of
buyers on first-come-first-serve basis subject to availability of funds.
13. Punjab Punjab Electric Punjab has decided to develop a dedicated policy that promotes EVs, EV
Vehicle Policy component manufacturing, and EV adoption in the state along with a prime
2019 focus on promoting cleaner mobility and creating jobs . Development of a
robust EV ecosystem, provision for incentives, procedures for adoption of EVs,
developing networks of charging infrastructure, R&D and innovation, recycling
and reuse of EV batteries are a few provisions covered under the policy.
35 The Electricity Act, 2003 defines a generating company in Section 2 (28) to mean any company or body corporate or association or body of individuals, whether incorporated or
not, or artificial juridical person, which owns or operates or maintains a generating station (viz., any station for generating electricity, including any building and plant with step-
up transformer, switch-gear, switch yard, cables or other appurtenant equipment, if any, used for that purpose and the site thereof; a site intended to be used for a generating
station, and any building used for housing the operating staff of a generating station, and where electricity is generated by water-power, includes penstocks, head and tail works,
main and regulating reservoirs, dams and other hydraulic works, but does not in any case include any sub-station (ref. Section 2(30) of the Electricity Act, 2003)).
36 Available at https://dst.gov.in/innovative-low-cost-charging-infrastructure-accelerate-adoption-evs-indian-standards-low-cost-ac
37 https://powermin.gov.in/sites/default/files/uploads/EV/Andhra_Pradesh.pdf
38 https://powermin.gov.in/sites/default/files/uploads/EV/Delhi.pdf
39 https://powermin.gov.in/sites/default/files/uploads/EV/Delhi.pdf
40 https://powermin.gov.in/sites/default/files/uploads/EV/Gujarat.pdf
41 https://powermin.gov.in/sites/default/files/uploads/EV/Gujarat.pdf
42 https://powermin.gov.in/sites/default/files/uploads/EV/Karnataka.pdf
43 https://powermin.gov.in/sites/default/files/uploads/EV/Kerala.pdf
44 http://mpurban.gov.in/Uploaded%20Document/guidelines/1-MPEVP2019.pdf
45 https://powermin.gov.in/sites/default/files/uploads/EV/Maharashtra.pdf
46 https://powermin.gov.in/sites/default/files/uploads/EV/Tamilnadu.pdf
47 https://powermin.gov.in/sites/default/files/uploads/EV/Uttar_Pradesh.pdf
48 https://powermin.gov.in/sites/default/files/uploads/EV/Uttar_Pradesh.pdf
49 Available at https://powermin.gov.in/sites/default/files/uploads/EV/Bihar.pdf 67
69
The various demand and supply side incentives offered by the EV entry to the domestic tariff areas, additional duties may be payable.
policies of different states have also been tabulated in Annexure I There are also export trade incentives for manufacturing/services
enclosed with this report. exports from India, under which the government provides incentives
to exporters. Since there has been a push for investments in the EV
(i) Land sector, foreign investment is an attractive option for governmental
In establishing EV manufacturing unit, land acquisition becomes and non-governmental stakeholders who aim at developing a strong
a crucial aspect of operations and usually the basic activity to be EV market in India.
undertaken by the manufacturer. The basic checklist of any land
acquisition would include title investigation and all approvals 10.2.2 Laws Relating To Manufacturing
required to setup an EV manufacturing unit that must be obtained
from the relevant authorities. It is always advisable to undertake a (a) Product Linked Incentive Scheme
comprehensive land title diligence and verify the ownership of the The PLI Scheme was launched under the Make in India programme to
land and ensure that such land is free from any encumbrance, charges enhance investments in the manufacturing industry of India and to
and security and other legal disputes. In the event the desirable establish an ecosystem of large-scale manufacturing in India. Either
land is an agricultural land, such land must be first converted into cash incentives or incentives through adjustment mechanisms are
industrial use if the same is being considered for a manufacturing being provided to certain investors based on their eligibility criteria.
plant. Acquiring a private land would include compliance with The PLI schemes provide support to domestic manufacturers and
certain land ceiling laws. Industrial parks on the other hand can be such PLIs are based on increasing revenue by providing supply side
considered to be a viable option as it has all the basic amenities like incentives. Furthermore, even foreign companies are invited to set
power, water, roads and other necessary factors that maybe required up their manufacturing units in India and local manufacturers are
by an EV manufacturer. The companies may explore such options in being urged to set-up new units and expand the existing ones. The
the event acquiring land becomes capital intensive activity. PLI Schemes relevant for manufacture of EVs in India are:
Land acquisition alone is not the only factor to be considered by (i) PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage:
the EV manufacturer but host of other factors must be considered. The PLI scheme for ACC battery manufacturing was approved in
Some of the other important factors would include availability of November 2020 as battery is one of the most important and critical
raw materials for the production of EVs, rail and road connectivity aspect of any EV. Battery carries approximately 50% of the total cost
to the manufacturing unit, availability of labour to manufacture the in an EV and accordingly, improved battery chemistry can reduce the
EVs, implications of manufacturing policy of that particular State overall cost of an EV. Hence, the PLI scheme is now being targeted at
along with the production incentives provided by the government battery manufacturing and development as well.
to push more EV manufacturers to show interest in setting up their
manufacturing unit in a particular State. The PLI scheme for national programme on ACC Battery Storage
incentivizes potential investors, both domestic and overseas, to
It is to be noted that EV policies formulated by States like Punjab, setup giga-scale ACC manufacturing facilities in India. The scheme
Andhra Pradesh, Karnataka and Tamil Nadu offer supply-side and emphasises on maximum value addition, quality output and
manufacturer-driven incentives and accordingly, the EV manufacturer achieving pre committed capacity level within a pre-defined time-
may want to establish his manufacturing plant in and around such period. The scheme has an outlay of approx. USD 2373 million for the
States and accordingly expand to other EV manufacturing friendly entire tenure. As per a Press Information Bureau report, “ACCs are the
States. new generation advance energy storage technologies that can store
electric energy either as electrochemical or as chemical energy and
(j) Foreign Investment convert it back to electric energy as and when required”. The tenure
In case of foreign investment, 100% foreign direct investment is of this scheme was from the financial year 2024-2025 until financial
allowed in the EV sector under the automatic route. Taking advantage year 2028-2029 along with a period of 2 years to establish facilities
of the same and the incentives provided under the legal framework of for manufacturing of ACCs. The scheme targets the establishment of
the central and state government of India, several major investments an ACC manufacturing plant of 50 GWh and a 5 GWh plant for niche
have been made by foreign companies in India. ACC technologies.
Foreign companies can establish their presence in India through The MHI released a request for proposal in October 2021 inviting
subsidiaries, joint ventures and limited liability partnerships. Cross bidders for a total manufacturing capacity of battery storage of 50
border loans are permitted under exchange control rules for capex GWh with an outlay of approx. USD 2,37,2 million (INR 18,100 crore)
or working capital purposes subject to minimum maturity and and the bidding was conducted online through a transparent two-
interest rate caps. Payment of considerations for technical services, stage bid process as per the cost and quality base selection process.
royalty or repatriation of profits via dividends or through buyback The bidding for this PLI scheme was held in January 2022 and around
is also permitted under exchange control rules. Functioning of a 115 companies submitted bids to receive incentives under the
corporate entity is regulated by the (Indian) Companies Act, 2013 scheme. The selected bidders are Hyundai Global Motor Company
and all foreign companies are also required to comply with the extant Limited (with allotted capacity of 20 GWh), Ola Electric Mobility
foreign exchange control rules and regulations. India allows a rebate Private Limited (with allotted capacity of 20 GWh), Reliance New
on customs duty on imports from preferred trade nations. Customs Energy Solar Limited (with allotted capacity of 5 GWh) and Rajesh
duties may also be avoided if imports are made into SEZ – of which Exports Limited (with allotted capacity of 5 GWh). The selected
there are more than 250 in India. These zones are typically used as low- companies will have 2 years to set up manufacturing units after
cost manufacturing zones for goods intended for export from India which the incentives under the scheme shall be distributed over a
but may also be used to access the domestic market, though upon period of 5 years.
50 Based on the information published in the following websites: (a) https://evreporter.com/chandigarh-ev-policy-2019/ (rerouted through MoP) and (b) https://chandigarh.gov.in/
subsidy-on-battery-operated-vehicles.
51 https://evreporter.com/chandigarh-ev-policy-2019/
52 https://chandigarh.gov.in/subsidy-on-battery-operated-vehicles
53 https://powermin.gov.in/sites/default/files/uploads/EV/Punjab.pdf
54 https://powermin.gov.in/sites/default/files/uploads/EV/Punjab.pdf
(ii) PLI Scheme for Automobile Industry: This scheme provides incentives range between 13% to 16% of
The MHI notified the PLI Scheme for advanced automotive products the determined sales value to OEMs of automotive and first time
that is expected to enhance India’s manufacturing capabilities investors in automobile or auto components, who manufacture
and attract investments in manufacture of advanced automotive advanced automotive technology vehicles including BEVs, hydrogen
products and technology like collision warning systems, tire pressure fuel cell vehicles etc.; and
monitoring systems, automatic braking, adaptive front lighting,
etc., with a budgetary outlay of approx. USD 3400 million. The PLI B. Component Champion Incentive Scheme:
Scheme starts from the financial year 2022-2023, with disbursal of This scheme includes incentive in the range of 8% to 11% of the
the pertinent incentives in the financial year 2023-2024 and so on, determined sales value for manufacturers of auto components
for a period of 5 consecutive financial years ending in the financial including OEMs and first time investors, who manufacture advanced
year 2027-2028. The scheme has two components that incentivize automotive technology components notified by the MoHI&PE.
the sales of automobile and auto components related to advanced
automotive technology: Companies are only eligible to apply for this scheme if
A. Champion OEM Incentive Scheme: they meet following thresholds:
Eligibility Criteria Automotive OEM Automotive Components

Global revenue (including revenue of group Approx. USD 1.35 billion Approx. USD 67.40 million
companies)
Investment in fixed assets (including investment Approx. USD 405 million Approx. USD 20 million
of group companies)
Additionally, only first-time investors with global net worth of approx. this will increase India’s share in global automotive trade.
USD 131 million as on 31 March 2021 and a minimum cumulative
new domestic investment of approx. USD 262 million (in case of
(b) Phased Manufacturing Programme
OEM) or of approx. USD 65 million (for components manufacturing)
can apply under this scheme. Companies availing benefits under this The PMP was notified vide Notification No. F. No. 12 (31)/2017 – AEI
scheme have to obtain determined sales value of approx. USD 16 dated 06 March 2019 by the DHI with the objective of development
million under the champion OEM incentive scheme and of approx. of domestic manufacturing of EVs, its assemblies/sub-assemblies
USD 3 million under the component champion incentive scheme for and parts/sub-parts, thereby increasing the domestic value
the first year. A growth of 10% in determined sales value on year-to- addition and creating employment opportunities. The PMP enables
year basis for the next 5 years also has to be shown by the companies manufacturers in the sector to plan their investments for the
to claim the incentives. establishment of a robust indigenous EV and related sub-assembly/
components manufacturing base in India through a revision of the
erstwhile custom duties. The PMP proposed to increase the base
The MHI had received around 115 applications for the PLI schemes customs duty on vehicles from April 2020 and for lithium ion cells,
for the automobile and auto components sector. The scheme battery packs and certain parts for use in manufacture of EVs from
received proposed investment of approx. USD 5901 million from April 2021 onwards.
the selected applicants under the Champion OEM Incentive Scheme
and of approx. USD 3911 million under the Component Champion
Incentive Scheme. Under the Champion OEM Incentive Scheme, (c) Operational Guidelines for Delivery of Demand Incentives
almost 20 participants have been approved including Tata Motors under FAME II
Limited, Mahindra & Mahindra, Ford India, Suzuki Motor Gujarat, The Operational Guidelines for Demand Incentives (“OGDI”) have
Hyundai Motor India, Pinnacle Mobility Solutions, Kia India, Eicher been notified by the DHI for promotion of indigenous manufacturing
Motors, Ashok Leyland and PCA Automobiles India. With respect of EVs vide Notification No. S.O. 1300 (E) on 08 March 2019 . The
to the incentives available for manufacturers of two-wheeler and rationale of notifying the OGDI is to implement FAME II through
three-wheelers, the selected companies include TVS Motor, Hero demand incentives, establishment of network of charging stations
MotoCorp, Bajaj Auto and Piaggio Vehicles. Foreign companies from and administration of FAME II including publicity, information,
countries such as USA, UK, Netherlands, Italy, France, Japan and the education and communication activities. It provides for demand
Republic of Korea have also been selected to receive incentives under incentives that are important components of FAME II which directly
the scheme. help in demand generation of the EVs. The OGDI further provides
for the registration of OEM (who may be proprietor, private or
public companies or partnership firms), manufacturing any vehicle
The PLI Scheme for automotive sector along with the PLI scheme for covered under the FAME scheme and seek to avail the benefits
ACC discussed above and FAME scheme aim to facilitate transition of under the FAME scheme. The OGDI lays down the guidelines to be
India’s reliance for power from traditional fossil fuel-based vehicles followed to by the OEMs at the time of sale of the vehicle, including,
to environmentally cleaner, sustainable, advanced and more efficient mandatory certifications, disclosures, procedure for reimbursements,
EVs. It is estimated that over a period of 5 years, the PLI Scheme billing mechanism for sale of EV, and resolution of disputes between
for automobile and auto components industry will lead to fresh stakeholders. For availing such benefits, the OEM shall apply to the
investment of over approx. USD 5571 million, production of over DHI (NAB) in the prescribed format as per Annexure-A of the OGDI.
approx. USD 30153 million and will create over 7,50,000 jobs. Further There are guidelines for OEMs, testing agencies, dealers of the EVs to
55 http://sezindia.nic.in/cms/operational-sezs-in-india
56 Department of Heavy Industry Notification No. S.O. 2208(E) dated 09 June 2021 available at https://heavyindustries.gov.in/writereaddata/UploadFile/ACC%20Scheme%20
57 Notification%209June21.pdf
Available at https://pib.gov.in/PressReleasePage.aspx?PRID=1717938 71
be followed at the time of sale of EVs that is detailed in the OGDI. The lithium-ion battery needs to be disposed of and it can have serious
purpose of the OGDI is to help implement FAME II and also to push environmental impact if not undertaken correctly.
the Make in India initiative of the Government of India.
According to the CEEW, India has seen a growth of more than 5% in
10.2.3 Laws Relating to Sale and Distribution the registered electric two-wheeler sales at 22,450 units in November
The sale and distribution of EV’s in India are governed by policies 2021 as compared to about 4,000 units in November 2020. With
such as FAME I and FAME II along with PLI schemes and some of the the growing awareness and inclination of the customers for green
states in India have their own policies for promoting the usage of mobility, there has been a monthly growth of approximately 17% in
the EVs. Some of the concessions to the consumers include subsidy the sale of electric two-wheelers.
of the purchase of the EVs, exemption from road tax, registration
charges and competitive interest rates on financing of such EVs. Among other initiatives, the registration charges for all kinds of EVs
While it is a fact that India is one the world’s largest importers of fossil across the country have been waived.
fuels, it is equally a contributor to primary source of pollution. Over
more than 10 states in India have published their final EV policies that
support national electric mobility policies. Nearly all state EVs policies Currently, India imposes 100% import duty on fully imported cars
prioritize two and three-wheelers and public transportation. The with cost, insurance and freight, and it doesn’t treat EVs separately
policies, however, may differ in terms of target, supply side incentives from ICE vehicles. Therefore, the government needs to subsidise EVs
which is manufacturing, and demand side incentives which are in order to promote green mobility.
consumer centric and involve charging infrastructure investments.
Certain standards and certification requirements have been put in
Another possible alternative to the advanced chemistry battery cell place by the governmental authorities for EV components/systems.
which is more environmentally friendly is hydrogen fuel cell that Most of these standards are aligned with the international standards
can be a more sustainable form of mobility and may even work in with the exception of some reflecting local use and environment;
terms of economic viability of an EV. Hydrogen fuel cell can provide for example, tests to demonstrate protection from flood and rain
much more energy than the traditional lithium-ion batteries, without damage.
adding on to the existing weight of the EV. In a hydrogen fuel cell,
hydrogen is stored on board just like any traditional fuel and the fuel Alongside the various initiatives by the central government, in
cell passes the electricity through chemical reaction to the electric order to promote the sale of the EVs, several state policies also cover
motor in the EV. subsidy and tax exemptions, among other incentives, for buyers.
The current battery system of the EV as it stands today makes up for Government of Delhi has become the first government to exempt
50% of the total cost of the vehicle. Hydrogen fuel cell not only hold road tax and registration fees for new EVs which has encouraged the
more charge, but it also consumes about half the time to charge in buyers to purchase EVs. The government has also allowed the retro
comparison to the traditional lithium-ion battery. As the world will fitment of diesel vehicles with EV kits which will allow the old diesel
accept the EVs as more traditional form of vehicles, refueling time will vehicle owners to convert their vehicles into electric ones and get
also need to be reduced, especially in commercial EVs such as trucks. limited by the ban on 10-year-old diesel models ordered by the NGT.
Presently, one of the limitations to the usage of hydrogen is the
insufficient production of it that too in a competitive pricing by using
green electricity. The availability of hydrogen as fuel in every country Road tax for EVs is completely waived in most states where the policy
also seems to be impractical at this juncture but it cannot be ruled has been implemented, except for in Gujarat and Kerala, where
out as a much cleaner, efficient, and effective fuel in comparison to buyers have to pay 50% of the total road tax amount.
the existing lithium-ion battery system. Another environmental pro
of using hydrogen fuel cell is that it need not be disposed of like a (a) State-wise incentives for electric two-wheelers:
Per kWh of battery Max Road tax

State
capacity subsidy exemption
Delhi Rs 5,000 Rs 30,000 100%
Maharashtra (including early bird incentive) Rs 5,000 Rs 25,000 100%
Meghalaya Rs 10,000 Rs 20,000 100%
Gujarat Rs 10,000 Rs 20,000 50%
Assam Rs 10,000 Rs 20,000 100%
West Bengal Rs 10,000 Rs 20,000 100%
Rajasthan Rs 2,500 Rs 10,000 NA
Odisha NA Rs 5,000 100%
Uttar Pradesh No No 100%
Kerala No No 50%
Karnataka No No 100%
58 https://www.thehindubusinessline.com/news/ministry-of-heavy-industries-holds-pre-bid-meeting-for-battery-storage-pli-scheme/article37505454.ece
59 https://www.carandbike.com/news/hyundai-motors-ola-electric-receive-incentive-under-pli-scheme-for-advanced-chemistry-cell-battery-storage-2840683?publisher=newssta
nd&utm_source=googlenews
60 Sales value means total sales for eligible vehicles/ components minus total sales for eligible/ components in the base year i.e., financial year 2019-2020
61 Press Information Bureau report dated 15 September 2021 available at https://pib.gov.in/PressReleasePage.aspx?PRID=1755062
Tamil Nadu No No 100%
Telangana No No 100%
Madhya Pradesh No No 99%
Andhra Pradesh No No 100%
(b) State EV subsidies on electric cars and SUVs:
Per kWh of Max Road tax

State
battery capacity subsidy exemption
Maharashtra (including early bird incentive) Rs 5,000 Rs 2,50,000 100%
Delhi (only for first 1000 buyers) Rs 10,000 Rs 1,50,000 100%
Gujarat Rs 10,000 Rs 1,50,000 50%
Assam Rs 10,000 Rs 1,50,000 100%
West Bengal Rs 10,000 Rs 1,50,000 100%
Odisha NA Rs 1,00,000 100%
Meghalaya Rs 4,000 Rs 60,000 100%
Rajasthan No No NA
Uttar Pradesh No No 75%
Kerala No No 50%
Karnataka No No 100%
Tamil Nadu No No 100%
Telangana No No 100%
Madhya Pradesh No No 99%
Andhra Pradesh No No 100%
(c) Standards and specifications for EV, its Battery and Charging market shifts its trends toward EVs, existing manufacturers of
Infrastructure: automobiles and auto components are also expected to realign the
portfolio of their products to match the demands of the upcoming
The CMVR committee established by the MoRTH is responsible for market for EVs. At this stage, the industry and the local manufacturers
regulations and standards for EVs and ancillary components. The require government support for the development of localized market
CMVR approves AIS prepared by the AISC in India. In addition to the for EV component manufacturing and facilitating skill development
AIS 138 Parts 1 and 2 discussed in chapter 3.1 (b) above, manufacture for the workers.
of EVs and its batteries are required to follow the standard and
specifications mentioned in IS 17017 Part 1, Part 2, Part 21, Part 22, 10.2.4 Laws Relating to Licensing and Intellectual Property
Part 23, Part 24, and Part 25 along with IS-15118 notified by the Licensing and patenting are essentials for sharing and advancing
BIS. The MoP has also notified certain specifications to be adhered technology and in the development of competition, technology
for selection of equipment for setting up of charging infrastructure and R&D of the EVs. The patenting procedure in India involves filing
of EVs vide its notification no. 12/2/2018-EV dated 01 October 2019. of an application, followed by publication of the same for public
As discussed under chapter 6.5 (a), the Central Electricity Authority knowledge, 18 months after the filing date and examination to grant.
(Measures relating to Safety and Electric Supply) Regulations, 2010 The applicant is required to file a request for examination after the
were also amended in 2019 to accommodate for safety provision in publication of the application. Further, post examination, a patent is
relation to EV charging stations. Rule 11A of the Central Electricity finally granted at least 30 months from the filing date.
Authority (Technical Standards for Connectivity of the Distributed
Generation Resources) Regulations, 2013 also provides for standards The Office of the Controller General of Patents, Designs and Trade
for charging station, prosumer or a person seeking connectivity or Marks (Indian Patent Office) grants a patent that fulfils all requirements
connected to the electricity system. after the examination. Once granted, a patent remains in force for a
period of 20 years from the date of filing, subject to an annual renewal
The EV auto-component industry is at a very early stage as compared fee. Any improvement or modification of an already existing patent
to the conventional vehicles. Currently, there is a limited EV auto- of an invention can be protected by a ’patent of addition’ in India. It is
ancillary manufacturing space in the country. As the automobile granted for protecting the novel, industrial applicability,
62 Determined sales value is defined as the incremental eligible sales of a particular year over the base year
63 Press Information Bureau report dated 24 September 2021 available at https://pib.gov.in/PressReleasePage.aspx?PRID=1757651
64 https://economictimes.indiatimes.com/industry/auto/auto-news/115-companies-file-applications-under-pli-scheme-for-auto-sector/articleshow/88814866.cms
65 https://fa.news/articles/maruti_suzuki_tvs_among_95_firms_approved_for_pli_scheme-140495/
66 https://eng.bharattimes.co.in/tata-suzuki-mahindra-along-with-20-other-companies-win-the-auto-pli-bid/
69 Press Information Bureau report dated 15 September 2021available at https://pib.gov.in/PressReleasePage.aspx?PRID=1755062 73
and non-inventive improvements or modifications in an already filed stations to be designed, installed, tested, certified, inspected and
or granted patent application. connected in accordance with the provisions contained therein.
It also incorporates the requirements for earth protection system
The Designs Act 2000 and the Designs Rules 2001 provide protection for charging stations, requirement to prevent fire for EV charging
to designs . Designs are valid for a maximum of 10 years, renewable stations and testing of charging stations.
for a further 5 years.
To ensure that these regulations are complied with, the CEA Supply
With the increase in market demand of the EVs, the patent application (Amendment) Regulations, 2019 also lay down the procedure for
filing trends have also increased worldwide. Toyota Motor Corp., inspection and periodic assessment of charging stations. The owner
Nissan Motor Co. Ltd, KIA Motors Corporation, Boyd Company Limited, or the electrical inspector or the chartered electrical safety engineer
Mitsubishi Motors Corp., Ford Global Technologies LLC, Honda Motor is mandated to test every charging station before energisation of
Co. Ltd, Hyundai Motor Corporation and Beijing Electric Vehicle Co. charging stations and the owner of the charging station has to
Ltd have the highest number of patent applications. Companies have ensure that test and inspection of charging station is carried out
also applied for a number of EV related design patents in India. These every year in the initial period of first 3 years after the energisation
range from design patents for battery packs and chargers, to motors of charging station and in every four years thereafter. The owner is
and cooling systems, and even entire EVs. In India, Honda seems to also responsible to establish and implement a safety assessment
have dominated the EV powertrain patents in the market with about programme for regular periodic assessment of the electrical safety
400 patents related to batteries which is 75% of patent applications. of the charging station. The CEA Supply (Amendment) Regulations,
Companies like Toyota, NTN, Suzuki, Bosh and Mitsubishi have also 2019 also detail the international standards for charging stations.
joined the race. TVS and Hero MotoCorp remain as the two biggest
two-wheeler manufacturers filing of the patent applications. 10.2.6 Laws Relating to Use (Payment, Insurance and Consumer
Protection)
A major challenge with EVs remain the setting up of new
manufacturing facilities. Thus, most innovations come from changing (a) The central government through FAME scheme provides subsidies
the existing systems to produce EVs on the same assembly lines as for EV’s under two and three-wheeler category and also for light
the conventional vehicles. commercial vehicles and buses at a national level. Many states
provide further subsidy which brings down the total cost of EVs.
10.2.5 Laws Relating to Energy Supply and Sale Dealer and manufacturer discounts are also some of the benefits
which are passed on to the consumer of the EVs. In addition to this,
Indian authorities are trying to develop a seamless and stakeholder
there are certain tax exemptions which are made available to the
friendly model to prioritise the adoption of EVs in India and therefore,
end consumer. Tax exemptions are largely limited to individuals.
there has been an attempt to deregulate the sale and supply of
Section 80EEB of the Income Tax Act, 1961 provides deduction of
electricity to charging stations while accommodating the mandatory
interest payments upto approx. USD 1966 which can be used by the
requirements to be followed for procurement of electricity for
individual to claim interest paid on the purchase of an EV. With FAME
charging stations. As discussed previously, the guidelines for
I and later FAME II along with host of other schemes, it is proposed to
charging infrastructure were revised to provide for a robust regime
be implemented through creating demand of the EVs, establishing
for establishment of charging stations in India.
enough charging stations and educating the masses through
In addition to the above, as per the MoP, the charging of EV batteries information, education and communication activities. Further, in
involve use of electrical energy for its conversion to chemical energy order to bring down the cost of the EV’s, MoRTH has permitted the
which gets stored in the battery which involves a service requiring sale and registration of two and three-wheeler vehicles without
consumption of electricity by the charging station and earning preinstalled batteries. This way, the upfront cost of the EVs can be
revenue for the same from the owner of the EV. As the electricity reduced and batteries may be sold by the manufacturers separately
is consumed within the premises owned by the charging station, and the total cost may be split.
which may be connected to a distribution system otherwise for
(b) Insurance
receiving electricity, such charging activity does not constitute sale
Recently, there has been a rise in the incidents of electric scooters
of electricity to any person neither does such activity involve further
catching fire, across the country. This has led to companies such
distribution or transmission of electricity. Basis the same, the MoP
as Okinawa Autotech, Pure EV and Ola Electric to recall certain
has clarified that the charging station does not perform any activities
electric scooters and fix any manufacturing defects, in particular,
which require license under the provisions of the Electricity Act,
and undertake a detailed check of the diagnostics across all battery
2003, namely, transmission, distribution or trading of electricity and
systems, thermal systems as well as safety systems. In light of the
therefore the charging of batteries of EVs through charging stations
increase in such instances, the Minister of Road Transport and
do not require any license under the Electricity Act, 2003.
Highways, Nitin Gadkari has constituted an expert committee to
Central Electricity Authority (Measures relating to Safety and investigate these incidents that have occurred in the past couple
Electric Supply) Regulations, 2010 (CEA Supply Regulations): of months. Based on the committee’s report if any EV company is
identified to be negligent with their processes, a heavy penalty will
The CEA Supply Regulations and the CEA Supply (Amendment) be imposed on such a company and a recall of all defective vehicles
Regulations, 2019 have also been issued by the CEA under the will be ordered.
powers conferred under Section 177 of the Electricity Act, 2003.
These guidelines have been amended to facilitate the establishment A pivotal question that arises, following such incidents of electric
of charging infrastructure for EVs. The CEA Supply (Amendment) scooters catching fire across the country, is whether the damages
Regulations, 2019 makes amendment to the CEA Supply Regulations suffered due to such incidents get covered under an insurance policy
to make way for establishment of a proper legal regime regulating and whether the treatment is different from other ICE vehicles when
the supply of electricity to and safety of charging stations. The CEA it comes to claiming insurance for such defects. The MV Act mandates
Supply (Amendment) Regulations, 2019provide for general safety every vehicle that operates in a public space to obtain at least a third-
requirement for EV charging stations by requiring all EV charging party liability motor vehicle insurance cover. Currently, EVs are (d)
70 Department of Heavy Industry, Notification No. S. O. 1300 (E) dated 08 March 2019 https://heavyindustries.gov.in/writereaddata/fame/
famedepository/1-pmp.pdf.
71 https://heavyindustries.gov.in/writereaddata/fame/famedepository/3-operational%20guidelines.pdf
insured just like other vehicles and there is no specialized insurance (c) In India, there is no specific law to deal with product liability in
policy for EVs. In India, the IRDAI has, in an attempt to incentivize EV case of any automobile. In case a consumer suffers any loss as a result
owners and to promote the use of EVs, provided a 15% discount on of any defect in the automobile, such customer may approach the
premiums for third party liability insurance for private electric cars relevant authority under the CPA which protects the rights of the
compared to the rates for general private cars of similar category, consumers. Claims under CPA are made at district, state and national
with effect from June 2019. levels. Even for EVs, the consumers have protection under CPA in the
event a consumer suffers any loss accruing from the usage of EVs. It
A third-party liability insurance policy typically provides a two-fold is also within the power of consumer forums to award damages in
coverage against: (i) any third-party injury or death or damage to cases of death, permanent injury or related losses arising from usage
any property of a third-party caused by the insured’s vehicle (as of a product.
required under the MV Act); and (ii) any injury caused to the insured
due to an accident (provided that the insured has a personal accident (d) Battery Swapping
cover as part of the third-party insurance plan). However, other The union budget for 2022-23 indicates strengthening the ecosystem
damages such as those caused by fire (self-ignition or lightning) of EVs in India. One of the major steps in the direction seems to be
are covered only under a comprehensive insurance plan and do not the introduction of a battery swapping policy and interoperability
get covered under a standalone third-party insurance policy. Such a standards which will ensure that use cases for EVs are increased. Under
comprehensive policy also covers instances of theft, own damage, battery swapping, EV owners can exchange a depleted battery for a
personal accident and natural disasters like earthquakes, cyclones, fully charged one, without waiting for the depleted battery to be fully
landslides, amongst others. In this regard, it is pertinent to note that charged which can be a game-changer. The policy is aimed at making
such comprehensive policies also have certain exclusions such as EVs a more lucrative industry to bet on and also develop sustainable
with respect to mechanical and electrical defects, damages caused and innovative business models for battery and energy as a service
on account of any modifications made to the vehicle, over-heating along with the EV charging ecosystem. Further, this also indicates
and oil leakage, amongst others. that the central government may bring a special policy for battery
swapping and uniform standard for EV batteries. Urban planning has
Therefore, it is crucial to determine the cause of fire before claims to be made more inclusive to set up more PCS but given the space
may be submitted to insurance companies. If the cause of fire is constraints, the battery swapping policy can help achieve the goal
specifically mentioned as an exclusion under the insurance policy or of smooth operation and running of the EVs. This policy will also
if the limitations of use as mentioned in the insurance policies are ensure that EV manufacturers will manufacture standard removable
violated, the insurance provider may reject the claim. It is important batteries and also reduce the cost of EV ownership. The reduction in
to note that the CFEES has discovered serious battery defects and ownership costs of EVs will act as one of the major lucrative options
defects in designs of the battery packs and modules in its report on for the consumers of traditional fuel-operated vehicles. The policy,
the incidences of electric scooters catching fire. however, needs to be prepared in such a way that even commercial
EV makers can benefit from battery swapping.
Globally, most countries seem to provide specialized insurance
products/coverages to EVs. The Insurance Association of China Presently, not many EV manufacturers provide battery swapping
recently launched a commercial insurance dedicated to new energy through their vehicle design and enabling it for the whole industry may
vehicles (NEVs), resulting in significant increase in premium of many seem to be a bit of a challenge here. If nothing, the policy is indicative
NEV models. Compared to the traditional vehicle insurances, the NEV- of increased interest in clean energy and the environment through
dedicated insurances take into account the risks of batteries, energy supporting the EV charging segment. Some Indian manufacturers of
storage systems, electric motors and electric control systems and NEV swappable EV batteries are Sun Mobility, Ola Electric, Lithion Power,
buyers will be compensated for accidents (including spontaneous Voltup, Race energy, Esmito, Numocity, BatterySmart, ChargeUp
combustion) to vehicles that are running, parked or charged. and the Okaya Power group. Battery swapping stations have been
Countries such as United Kingdom , offer specialist policies for EVs established in various places like Azadpur, Delhi (Tata Power-DDl-
that cover risk of batteries being accidentally damaged, damaged Sun Mobility), Vaishali Colony Station (Battery Smart) and Huda
by fire or stolen. In Singapore, battery default and other defects by parking area in Gurugram (Zypp).
default do not form part of the general electric car insurance policy
and are required to be added to the maintenance package . Battery swapping is an ideal mechanism for e-commerce and delivery
companies for whom speed is an essential element of the business
Considering that the current fires may not be covered under the model. For EVs used by these companies, battery swapping is a
comprehensive insurance policies, if such fires are proved to be convenient alternative to charging stations. Many last mile delivery
caused due to a manufacturing defect, insurers in India should companies have set up swapping stations where delivery vehicles
consider introducing new products offering for specialized EV may exchange depleted batteries with fully charged ones.
insurance covering specific EV exposures. Further, as per publicly
available information, we understand that the insurance companies (e) Motor Vehicle Requirements
are currently monitoring claims of EVs, including instances of fire and The MV Act provides for laws on licensing, registration, insurance
may consider incorporating such risks while pricing premiums. The requirements, and permits in relation to motor vehicles in India.
regulatory agencies may also need to review and update, if required, Under the MV Act, the definition of motor vehicles covers under it
the testing requirements and safety standards applicable for EVs in EVs and therefore, the MV Act and the rules notified thereunder are
India to provide a globally compliant EV ecosystem. applicable to the use of EVs. The MoRTH has issued a draft notification
72 https://emobility.araiindia.com/standards/
73 Bureau of Indian Standards Corrigendum dated 18 August 2021 available at https://legalitysimplified.com/wp-content/uploads/2021/09/BIS1.pdf
74 Available at https://powermin.gov.in/sites/default/files/uploads/Revised_MoP_Guidelines_01_10_2019.pdf
75 See Chapter XI Safety Provisions for Electric Vehicle Charging Stations of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010
available at https://powermin.gov.in/sites/default/files/webform/notices/OM_merged.pdf
76 As per the Designs Act, 200, “design” is defined to mean only the features of shape, configuration, pattern, ornament or composition of lines or colours applied to any article
whether in two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in
the finished article appeal to and are judged solely by the eye; but does not include any mode or principle of construction or anything which is in substance a mere mechanical
device, and does not include any trade mark as defined in clause (v) of sub-section (1) of section 2 of the Trade and Merchandise Marks Act, 1958 (43 of 1958) or property mark as
defined in section 479 of the Indian Penal Code (45 of 1860) or any artistic work as defined in clause (c) of section 2 of the Copyright Act, 1957 (14 of 1957).
75
under the MV Act to exempt all battery-operated vehicles from the offender with an imprisonment of 7 years.
payment of fees for the purpose of issue or renewal of registration
certificate or for assignment of registration marks . However, it is For disposal of the batteries, the same shall come under hazardous
important to note that there are no specific laws in India that regulate waste management regulations. Due to the chemical nature of the
the EV space exclusively. batteries, it is likely to cause severe environmental damage. While
there are relevant legislations such as the Factories Act, 1948 along
10.2.7 Laws Relating to Environment (Production, Use, Disposal with the rules framed thereunder.
Of Batteries Etc.)
For battery disposal, there are specific rules dealing with the
(a) Environment Protection Act, 1986 hazardous waste which are:
In India, the EPA provides for the protection of the environment.
The EPA being wide in scope, provides for an overall framework (i) E-Waste (Management and Handling) Rules, 2011 which are
for studying the impact of the long term environment safety and primarily to reduce the usage of hazardous substance in electrical
implementing the solutions that may be needed to deal with the equipment by specifying a threshold for use of such material and to
consequences of such long term impacts. Under the EPA, the word also channelise the e-waste for recycling. The wide applicability of
environment comprises of water, air and land along with plants, the rules ensures that right from the manufacturer to the user, each
micro-organisms etc. The EPA empowers the central government to stakeholder is responsible to adhere to such rules.
formulate measures to protect and improve environmental conditions
(ii) Batteries (Management and Handling) Rules, 2001 that deal with
and also manage the waste disposal system. In an EV, although there
proper and effective handling of lead acid battery waste and ensures
is no pollution in terms of usage of the EV, the biggest concern is
that every stakeholder such as manufacturer, importers, assemblers,
usually of the disposal of batteries. Every battery has a limited life
auctioneers, consumers, stakeholders involved in manufacture,
cycle post which it becomes obsolete and may need to be changed.
processing, sale, purchase and use of battery and battery components
In such a case, battery disposal becomes one of the major cause of
to comply with the provisions of these rules.
worry, especially when there is a strong backing by the government
to make EVs a mainstream. In the process, it must be ensured that we
do not end up creating pollution on land while saving ourselves from (b) Vehicle Scrappage Policy
the ever-increasing air pollution. Further, the consent to establish The Vehicle Scrappage Policy, introduced in 2021, makes the concept
(CTE) and consent to operate (CTO)are integrated permit systems of a waste to wealth economy into reality. The policy requires
under the Water (Prevention & Control of Pollution) Act, 1974 and mandatory scrappage of all commercial vehicles that are older than
the Air (Prevention & Control of Pollution) Act, 1981 which can be 15 years and passenger vehicles older than 20 years in the event they
obtained through a combined consent application which needs to fail to adhere to fitness and emission tests. The age, quality of the
be submitted to the state pollution control board of such particular brakes, engine performance, etc., are a few factors taken into account
state. Any renewals for CTE and CTO are also undertaken through a while deciding whether a vehicle shall be scrapped or not. This policy
similar mechanism. Multiple permits may be required by a company has been launched, among other initiatives, as a stimulus for OEMs
depending upon the type of activities undertaken by it. to create demand for newer vehicles. This policy also supplements
the ‘Green India’ mission by removing old and polluting vehicles and
Any non-compliance under EPA invites strict penalties along with the replacing them with newer and cleaner vehicles on Indian roads. The
imprisonment up to 5 years and monetary fine of approx USD 1,311 policy considers all stakeholders like importers, exporters, MSMEs,
or both. In the event any violation continues for a period beyond OEMs, and consumers. The policy imbibes the principle of reuse,
one year, there is a provision under the EPA which shall punish the recycle and recover into the Indian auto sector.
77 https://evreporter.com/patents-and-technology-trends-in-ev-powertrain/#:~:text=It%20has%20about%20400%20patents,averaged%2020%20in%20
the%20segment.
78 https://www.businessworld.in/article/Nitin-Gadkari-Forms-Committee-To-Investigate-EV-Fire-Incidents/22-04-2022-426271/
79 The Centre for Fire Explosive and Environment Safety (CFEES) comes under the System Analysis and Modelling cluster of DRDO labs. It is the regulatory
authority for fire, explosive and environment safety in Ministry of Defence establishments and is the nodal agency for implementation of Safety Healthy
Environment (SHE) & Disaster Management for DRDO. It is also involved in R&D in fire, explosive and environment safety.
80 https://government.economictimes.indiatimes.com/news/digital-india/ev-fire-drdo-investigation-finds-serious-battery-defects-in-evs-that-caught-
fire/91758399
The main aim of this policy is to deploy fuel efficient vehicles by may soon be replaced with newer laws. However, till such new laws are
phasing out old vehicles on Indian roads which will lead to a reduction notified by the Government of India and other state governments, all
in environmental pollution, improvement in road and vehicular safety, companies are required to adhere strictly to the terms and conditions
enhancement of production of low cost and recycled scrap materials of the labour laws mentioned above.
and increase in demand in the economy. The policy also encourages
infrastructural development for testing of cars, establishment of 10.2.9 Environmental, Social and Governance
scrappage centers and use of recycled materials. Taking advantage With a global shift towards EVs and clean technology, investors
of this policy, Tata Motors has planned to set up scrappage centers at and companies are paving the way for further adoption of non-
Greater Mumbai, Hyderabad, Karnal and Howrah. financial factors like environmental, social and governance policies
(“ESG”) to analyse the opportunities for growth and identification
In addition to the laws discussed above, there are several legislations of material risks. EV manufacturers have to ensure that their supply
that become applicable on EVs like the EPA, such as the E-Waste chains remain committed to the goals envisaged under the policies
(Management) Rules, 2016, the Hazardous and other Wastes issued by the Government of India and the various states in India.
(Management and Transboundary Movement) Rules, 2016 and the A paradigm shift is required in the basic aim of companies from
Dangerous Goods (Classification, Packaging, Labelling) Rules, 2013, traditional models of profit making to establishment of policies
etc. that further the goal of a clean and emission free environment. The
underlying intent for adoption of EVs is rooted in clean environment
10.2.8 Labour Laws practices and companies all around the world are adopting string
In addition to the Factories Act, 1948, mentioned above, that deals ESG policies to ensure that the EV adoption process is aligned with
with compliances on safety, working hours, benefits, overtime and the goal of an emission free environment. It is important to ensure
leave, all manufacturers and companies in India are required to that the EV manufacturing and supply chain are fiscally responsible
adhere to the compliances and obtain ancillary permissions under and managed well by competent and trained personnel. It is also
following major labour legislations in India: important to ensure that adequate investment and importance is
placed on R&D so that innovative methods of EV manufacture, battery
(a) Building and Other Construction Workers Act, 1996, disposal, battery use are established to minimize any footprint left
(b) Contract Labour Act, 1970, by EV adoption on the environment. EV adoption will also increase
(c) Minimum Wages Act, 1948, the requirement of sophisticated technology and complex data
(d) Payment of Wages Act, 1936, processing capabilities which will provide a push to EV manufacturers
(e) Payment of Bonus Act, 1965, to adopt better branding and change customer relationships.
(f ) Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979 In the Indian scenario, it is important that manufacturers and suppliers
(g) Maternity Benefit Act, 1961 establish strong ESG policies. A major policy may be the utilisation of
(h) Equal Remuneration Act, 1976 renewable energy sources of power in charging infrastructure over
(i) Employees State Insurance Act, 1948 conventional sources which will further assist in making a cleaner
(j) Employees Provident Fund and Miscellaneous Provision Act, 1952 environment. Innovation and research is also required to understand
(k) Payment of Gratuity Act, 1972. how battery disposal may work without leaving any effect on the
environment or the society at large. Further research may also
It is relevant here to mention that the Indian labour laws are be adopted in the arenas of extraction of minerals required for EV
undergoing a major overhaul and the aforementioned legislations batteries to reduce the adverse polluting effect of these activities.
81 https://www.swissre.com/en/china/news-insights/articles/a-comprehensive-analysis-of-new-energy-vehicle-risk-characteristics.html
82 https://www.which.co.uk/money/insurance/car-insurance/electric-car-insurance-adjz63f08vcn
83 https://www.directasia.com/blog/5-things-you-should-know-about-electric-car-insurance-in-singapore/
84 https://e-vehicleinfo.com/battery-swapping-stations-cost-and-companies/#Battery_Swapping_Companies_in_India
85 https://e-vehicleinfo.com/battery-swapping-stations-cost-and-companies/#Battery_Swapping_Companies_in_India
86 Section 2 (28) of the Motor Vehicles Act, 1988 defines ‘motor vehicles’ as any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is
transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon
fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of
not exceeding twenty-five cubic centimeters.
87 Available at https://morth.nic.in/sites/default/files/notifications_document/draft%20GSR%20352%28E%29%20dated%2027th%20May%202021%20registration%20fees%20
exemption%20to%20battery%20operated%20vehicle.pdf
88 https://medium.com/batterybits/electric-vehicle-policy-framework-in-india-6bdc3ed64ed7 77
POTENTIAL OPPORTUNITIES
11 IN THE ELECTRIC VEHICLE
SEGMENT
EV Supply Chain
The Introduction of phased manufacturing program

has forced vehicle manufacturers to identify reliable Software
local suppliers to qualify for FAME II subsidies.
All the components, including motor and power
electronics, need to be localized except for the Unlike ICE vehicles that run on mechanical systems like engines, EVs rely on
battery pack. As of 2020, India was the world’s fifth embedded software. Batteries and motors are the most critical components of an
largest automotive market, and with the growing EV and are primarily managed by a battery management unit and motor controller
penetration of EVs, local suppliers will have a more that runs on software. For example, BMS performs cell balancing to ensure maximum
significant role to play. Besides Indian companies, battery life by minimizing cell degradation. Besides, aspects like charging, navigation,
the opportunity is being utilized by several global and diagnostics require software-enabled connectivity.
players. Some of the players are:
Brose: Germany’s EV component supplier has

entered the Indian market and is set to manufacture
motor, vehicle control units and power electronics in
its Pune plant
Valeo: One of the top automotive suppliers, it has

tied up with Omega Seiki to supply its integrated
power train
Saietta group: The UK-based company specializes

in Axial Flux Technology (AFT) electric motors and
has partnered with Padmini VNA for opportunities in
the Indian market
IRP Nexus Group: The Israeli company has

partnered with Sona Comstar to develop power
train for two and three-wheeler applications.
Other Battery Technologies (Sodium-Ion)
Given the growing concerns around the scarcity of metals like Lithium
and Cobalt for Lithium-ion batteries, other technologies, including Battery Recycling
Sodium-ion, are being looked like alternatives. Reliance Industries
has first cemented this interest in India through its recent acquisition
As stated earlier, the employment of a circular economy is key to
of Faradion, a UK-based Sodium-ion battery manufacturer. However,
long-term sustainability due to the limited resources of battery raw
the technology is still in its early stages and needs significant R&D
materials. The moment has already arrived where the raw material
before competing with Li-ion.
suppliers are not able to service the sudden spike in demand for EVs,
Safety: Sodium-ion batteries are safer than Lithium-ion given lower which is set to result in a battery price rise in 2022. In China, the price
thermal runaway, which implies a lower likelihood of catching fire. of Lithium Carbonate has reached US$41k/ton, which is five times
Further, the technology also works better in cold temperatures (at higher than the prices in Jan 2021. Similarly, the price of cobalt has
-20°C, the sodium-ion has a capacity retention rate of greater than doubled since January 2021M and Nickel jumped by 15%.
90%)
Recycling is a potential opportunity for India, generating ~50k
Energy Density: Sodium-ion typically has lower energy densities of tonnes of battery waste (including consumer electronics) per annum
150-160Wh/kg but is expected to go up to 200Wh/kg. At the same to reduce the import dependency. Besides the domestic market,
time, Lithium-ion offers 250Wh/kg, and good quality cells can give Indian companies can also serve global EV players. As demand for
up to 300Wh/kg. EVs is starting to increase, this is the time to perfect the technology
and begin servicing the sector.
Cost: Sodium-ion batteries, even without scale, can compete with
LFP batteries in terms of cost. LFP is the most cost-effective chemistry
that reached the price level of US$100/kWh in 2020.
79
GLOBAL BEST
12 PRACTICES FOR EVs
Global best practices for EVs across key geographies

Governments worldwide have rolled out incentive programs and outlined roadmaps to ensure an efficient global
transition toward electric mobility. The government initiatives aim to curtail the price parity between EVs and
conventional vehicles.
Some of global practices followed within key geographies include:
Europe: Europe is leading the way in drafting necessary policy changes for accelerating EV adoption. The European
Commission has set up robust CO2 targets for the transport sector. The EU’s ‘Fit for 55 Package’ is a strategic roadmap
to reduce emissions by at least 55% by 2030 and be the first climate-neutral continent by 2050. Under this roadmap, all
the sectors are expected to contribute to reaching the targets. The EU Commission has also revised the CO2 standards
and has directed all ICE vehicles to be phased out by 2035.
United States: The US government is expanding its fleet depots to reduce range anxiety issues for EV owners.
Majority of the consumers in the US charge EV batteries at their respective residences. However, the government is
taking initiatives to increase consumer footfall at the charging stations. Attracting higher footfall is imperative for the
charging to be cost-effective. The US government is taking steps to reduce costs by providing subsidies for installing
and operating chargers in low-demand centers.
China: China is diverting from the subsidy route to electrify its EV PARC. In 2020, China phased out its subsidy plan and
replaced it with mandates for vehicle OEMs. According to the mandate, a certain percentage of vehicles manufactured
every year should be battery-powered. Chinese manufacturers earn a stipulated number of points for each EV
manufactured, which they use to avoid financial penalties.
13 CONCLUSION
There has been a lot of buzz and hype around the EV industry in India and the Indian government also has placed EVs
as the primary alternative to traditional combustion engine vehicles. However, before placing reliance on EVs, a holistic
analysis is required to be undertaken involving the polluting effects of EVs, EV components and EV infrastructure along
with other alternative technologies like hydrogen powered vehicles, etc. Still, the impact of EVs in a market with huge
greenhouse gas emissions cannot be downplayed.
Mr. Nitin Gadkari, the minister of MoRTH, Government of India has been quoted to mention that the government
intends to have EV sales penetration of 30% for private cars, 70% for commercial vehicles, 40% for buses, 80% for two
and three-wheelers by 2030 and that the government is supporting localisation of all EV components and Rs 57,000
crore have been allotted for the same through the PLI schemes. He also said that the government has also allocated Rs
18,100 crore for the manufacturing of advanced battery cells.
While these investments are welcome, the government has been primarily focused on reducing India’s reliance on fossil
fuels and other traditional non-renewable forms of energy. However, India is still at a nascent stage of EV adoption
and needs to further strengthen its laws and regulations to realise its objectives of EV saturation in Indian market.
There are still some limitations to manufacture and use of EVs as compared to combustion engine vehicles which has
inhibited the demand side from accepting EVs with open arms. Formalisation of the legal regime, initiatives for public
awareness, redressal of logistical issues in the EV market are still required for seamless and fast adoption of EVs.
To increase EV adoption in India, Indian regulators must:
1. Push more for demand-side incentives to reduce parity between the prices for EV and ICE variants.
2. Focus on extending the mechanism for safety ratings (particularly used for ICE variants) toward EVs. This will help
instill confidence in the consumer before making the purchase.
3. Focus on providing incentives to companies for rapid product development of their truck portfolio and setting up
CV-specific charging stations.
89 https://www.financialexpress.com/auto/electric-vehicles/express-mobility-2021-ev-conference-in-depth-analysis-of-the-indian-ev-ecosystem/2378276/ 81
Annexure
Annexure : Incentives Offered Under Different

State EV Policies
period stated, whichever earlier) for - (a) Micro: 5 years (b) Medium: 7
ANDHRA PRADESH years (c) Large: 10 years
l100% reimbursement of stamp duty and transfer duty paid on
purchase or lease of land
(V) STAMP DUTY EXEMPTION
[A] TERM: 2018-2023
l100% reimbursement of stamp duty for lease of land/shed/building,
[B] MANUFACTURING mortgages and hypothecations
(I) CAPITAL SUBSIDY: [C] CHARGING INFRASTRUCTURE AND BATTERY
lMicro industries: 25% of (FCI) – up to approx. USD 19,665 (I) OTHERS
lSmall industries: 20% of FCI– up to approx. USD 52,440
lMedium industries: 20% of FCI– up to approx. USD 65,550 lState DISCOMs to establish slow and fast charging stations for both
lLarge industries (as defined in the policy): 10% of FCI – up to government and private vehicles and charging infrastructure to be
approx. USD 1 million for first two units, in each segment of EVs installed at least every 50 km on highways, other major roads, etc.
(i.e., two, three and four-wheelers, buses), battery and charging lLand to be allocated to private developers for setting up charging
equipment, hydrogen storage and fueling equipment manufacturing or battery swapping stations
lMega industries (as defined in the policy): 10% of FCI – up to lAllocation of 500 to 1,000 acres of land for developing EV Parks
approx. USD 2 million for first two units, in each segment of EVs,
(II) CAPITAL SUBSIDY
battery and charging equipment, hydrogen storage and fueling
equipment manufacturing lDC chargers (>=100V): 25% capital subsidy of the charging station
lClean production measures: (a) MSME - 35% subsidy on cost of equipment/machinery for first 100 stations up to approx. USD 13,110
plant and machinery – up to approx. USD 45,886 (b) Large - 10% lDC chargers (<100V): 25% capital subsidy of the value of charging
subsidy on cost of plant and machinery – up to approx. USD 45,886 station equipment/machinery for first 300 charging stations up to
lSustainable green measures: 25% subsidy of FCI of the Project – approx. USD 393
up to approx. USD 6 million for MSME and Large projects l25% capital subsidy of the FCI (for eligible assets excluding cost of
lDevelopers of Auto Clusters and Automotive Suppliers battery inventory) up to approx. USD 13,110 for the first 50 swapping
Manufacturing Centers (ASMC) specific to EVs shall be provided stations
financial assistance of 50% of FCIs in building and common l25% capital subsidy of the FCI for hydrogen generation and fueling
infrastructure, up to a maximum of approx. USD 2 million plants, with a maximum subsidy of approx. USD 1 million/unit for the
first 10 units
(II) ELECTRICITY DUTY
l100% net SGST to be reimbursed for purchase of fast chargers (DC
lFixed power cost reimbursement: approx.. USD 0.013 (INR 1)/ chargers of capacity 100V and above)
unit – for 5 years from the date of commencement of commercial
production [D] CONSUMERS
lElectricity duty reimbursement for 5 years (I) CAPITAL SUBSIDY
lA dedicated line along with special discount for nighttime/non-
ln/a
peak time usage will be offered for testing of BEV batteries based on
requirements (II) SGST REIMBURSEMENT
(III) LAND CONVERSION FEE AND LAND SUBSIDY l100% net SGST reimbursement for purchase of advanced batteries
for battery swapping
lMega integrated projects (as defined in the policy): Government lReimbursement of net SGST for services rendered by firms involved
to offer land to dependent ancillary units at same rate as OEMs up in services such as leasing of fleet of EVs, owning or operating EV
to a maximum of 50% of the government land allocated to OEM (if fleets and providing charging/battery swapping/Hydrogen Stations
allocated) for recharging/refueling EVs, until 2024.

(IV) SGST REIMBURSEMENT
(III) MOTOR VEHICLE TAX EXEMPTION
l100% net SGST reimbursement (limited to 100% of capex or for the ln/a
(IV) REGISTRATION FEE EXEMPTION [C] CHARGING INFRASTRUCTURE AND BATTERY
l100% Registration of EVs will be done online immediately (I) OTHERS
lExemption of 90% electricity duty of EV charging stations while
(V) ROAD TAX EXEMPTION
10% electricity duty at the account of the entrepreneurs during the
l100% reimbursement of road tax and registration charges on sale term of the policy
of EVs till 2024 lThe tariff for new third-party owned EV charging infrastructure
shall be as per the AERC tariff order for utilities
(VI) ENERGY SALE
lSeparate EV tariff to be created
l25% capital subsidy of the commercial public EV charging station
lAPERC to issue regulations, defining tariff and related terms &
equipment/machinery up to approx. USD 13,110 for first 500 stations
conditions, for vehicle to grid (V2G) sale of power and process and
charges of procurement of power through open access [D] CONSUMERS
lThird party EV charging infrastructure providers can procure power
from DISCOM at regulator determined tariff and provide the charging (I) CAPITAL SUBSIDY
service to EVs or through open access sources to open access. (vi)
Cloud charging features are encouraged lTwo Wheelers (2 kWh): approx. USD 131/kWh up to total state
subsidy of approx. USD 262 and maximum ex-factory price to avail
[E] ADDITIONAL REMARKS incentive at approx. USD 1,967
lAll external infrastructure such as power supply, water supply, lThree Wheelers (5 kWh): approx. USD 131/kWh up to total state
roads to be provided at the doorstep of the industrial unit, charging subsidy of approx. USD 656 and maximum ex-factory price to avail
& battery swapping stations at 50% of the cost of the infrastructure incentive at approx. USD 6,555
with an overall limit of approx. USD 262,204 per project. lFour Wheelers (15 kWh): approx. USD 131/kWh up to total state
lStipend of approx. USD 131 per employee per year to a maximum subsidy of approx. USD 1,967 and maximum ex-factory price to avail
of first 50 employees for a single company for Micro, Small, Medium incentive at approx. USD 19,665
and Large firms lBeneficiary will be allowed to avail similar subsidy from only one
lMarketing: 50% cost of participation -up to approx. USD scheme and maximum subsidy amount is limited to a maximum of
6,555 reimbursed to 10 MSME units per year for participating in 40% of ex-factory price of the EV
International Trade Fairs lRetro-fitment incentive @ 15% up to approx USD 197 for 3-Seater
lResearch grant: approx. USD 65 million auto rickshaws
lWater supply: 50% of price of existing industrial supply tariff for (II) SGST REIMBURSEMENT
initial 3 years from date of commercial production; reimbursement of ln/a
25% of the cost of water treatment plant up to approx. USD 262,204
lSupply tariff - for 3 years from date of commercial production (III) MOTOR VEHICLE TAX EXEMPTION
lBattery recycling plants will be incentivized to mine for compounds
ln/a
from used batteries.
(IV) REGISTRATION FEE EXEMPTION
l100% for 5 years including 100% waiver of parking charges for
ASSAM 5 years
[A] TERM: 2021-2026 (V) ROAD TAX EXEMPTION

l100% for 5 years
[B] MANUFACTURING
(VI) ENERGY SALE
(I) CAPITAL SUBSIDY:
ln/a
lUnits manufacturing EV or its component are eligible for the
following capital subsidy incentives on the cost of plant and [E] ADDITIONAL REMARKS
machinery: Micro units - 20%– up to approx. USD 19,665; Small units - lFinancial support will be offered to start-ups for research and
20% – up to approx. USD 65,551; Medium units - 20% – up to approx. innovation in EV & battery technologies
USD 131,102; Large units - 10% – up to approx. USD 1 million
l30% capital subsidy is also available under the North-East Industrial
Development Scheme, 2017 (NEIDS)
lInterest subsidy at 2% on working capital loan in addition to the 3% DELHI
interest subsidy available under the NEIDS
[A] TERM: 2020-2023
ln/a
[B] MANUFACTURING
(III) LAND CONVERSION FEE AND LAND SUBSIDY
ln/a (I) CAPITAL SUBSIDY:
ln/a
ln/a (II) ELECTRICITY DUTY
ln/a
ln/a
83
(III) LAND CONVERSION FEE AND LAND SUBSIDY lElectricity tariff applicable for all Public and Captive charging
stations for commercial use (i.e., charging facilities used by fleet
ln/a
owners) shall be as notified in the DERC Tariff Schedule for 2019-20
(IV) SGST REIMBURSEMENT as being applicable for “Charging Stations for e-rickshaw/e-vehicle
on single point delivery” as per applicable DERC Tariff Order
ln/a
[E] ADDITIONAL REMARKS
ln/a
ln/a
[C] CHARGING INFRASTRUCTURE AND BATTERY

(I) OTHERS GUJARAT
lGrant of 100% for the purchase of charging equipment up to
approx. USD 79/- per charging point for the first 30,000 charging [A] TERM: 2021-2025
points
[B] MANUFACTURING
lCapital subsidy for the cost of chargers installation expenses to the ln/a
selected Energy Operators (as appointed under the policy)
[D] CONSUMERS
ln/a
(I) CAPITAL SUBSIDY
lThe following incentives are subject to the eligibility criteria and
other terms and conditions mentioned under the EV policy of Delhi. ln/a
lTwo-wheelers – (i) Purchase Incentive of approx. USD 66kWh of (IV) SGST REIMBURSEMENT
battery capacity per vehicle up to approx. USD 393; (ii) reimbursement ln/a
up to approx. USD 66 to registered EV owner for scrapping and de-
registering old ICE two-wheelers (V) STAMP DUTY EXEMPTION
lE-autos - (i) purchase incentive of approx. USD 393 per vehicle; (ii) ln/a
Interest subvention of 5% on loans and/or hire purchase scheme;
(iii) reimbursement up to approx. USD 98 for scrapping and de-
registering old ICE autos (I) OTHERS
lE-rickshaws – (i) Purchase Incentive of approx. USD 393/- per lState DISCOMs to allow charging of EVs from the existing connection
vehicle for the purchase of one E-rickshaw or one E-cart per individual; of a consumer at existing tariff except from agriculture connection
(ii) for models certified by ARAI as an E-rickshaw or E-cart and having lThe tariff for new third‐party owned EV charging infrastructure
an advanced battery, interest subvention of 5% on loans and/or hire shall be as per the GERC tariff order for utilities dated 31 March 2018
purchase schemes and any amendments thereafter.
lGoods carrier – (i) Purchase Incentive of approx. USD 393/- to (II) CAPITAL SUBSIDY
the first 10,000 e-Carriers registered in Delhi after the issuance
of this policy; (ii) interest subvention of 5% on loans and/or hire l25% capital subsidy on the charging station equipment/machinery
purchase scheme for purchase of e-carriers and (iii) for purchase of up to USD 13,110 for the first 250 commercial public EV charging
e-carriers, reimbursement up to approx. USD 98 for scrapping and stations
de-registering old ICE goods carriers [D] CONSUMERS
lFour Wheelers: Purchase Incentive of approx. USD 131/kWh of (I) CAPITAL SUBSIDY
battery capacity up to approx. USD 1,967 for the first 1000 e-cars
registered in Delhi after the issuance of the EV policy lTwo Wheelers (battery capacity 2 kWh): approx. USD 131/kWh
subject to maximum ex-factory price of approx. USD 1,967
(II) SGST REIMBURSEMENT
lThree Wheelers (battery capacity 5 kWh): approx. USD 131/kWh
l100% of the net SGST to be reimbursed to the Energy Operators for subject to maximum ex-factory price of approx. USD 6,555
purchase of advanced batteries to be used at swapping stations.
lFour Wheelers (battery capacity 15 kWh): approx. USD 19,665/
(III) MOTOR VEHICLE TAX EXEMPTION kWh subject to maximum ex-factory price of approx. USD 19,665
ln/a (II) SGST REIMBURSEMENT
(IV) REGISTRATION FEE EXEMPTION ln/a

l100% during the term of the policy (III) MOTOR VEHICLE TAX EXEMPTION
(V) ROAD TAX EXEMPTION ln/a
l100% during the term of the policy
(VI) ENERGY SALE ln/a

(V) ROAD TAX EXEMPTION [C] CHARGING INFRASTRUCTURE AND BATTERY
ln/a (I) OTHERS
(VI) ENERGY SALE ln/a
ln/a (II) CAPITAL SUBSIDY
[E] ADDITIONAL REMARKS lInvestment promotion subsidy: (a) Micro: 25% of VFA up to USD
19,665; (b) Small: 20% VFA up to approx. USD 52,441; (c) Medium:
lAll housing and commercial establishments to give NOC to its approx. USD 65,551; (d) large/mega/ultra/super mega EV charging
members who wish to install charging stations with designated infrastructure equipment or component manufacturing, EV battery
parking spaces swapping infrastructure equipment or component manufacturing
enterprises: 20% VFA up to USD 655,512 per project for first 5 units
in the state
lFast charging stations: capital subsidy of 25% on the equipment/
KARNATAKA machinery up to USD 13,110 per station for first 100 stations
lEV battery switching/swapping stations for electric two and
three-wheelers: capital subsidy of 25% on the charging equipment/
[A] TERM: 2017-2022 machinery up to USD 3,933 per station for first 100 stations
[B] MANUFACTURING lEV battery switching/swapping stations for electric cars: capital
subsidy of 25% on the charging equipment/machinery up to USD
(I) CAPITAL SUBSIDY: 6,555 per station for first 50 stations
lEV battery switching/swapping stations for electric buses: capital
lInvestment promotion subsidy: (a) Micro - 25% value of fixed assets
subsidy of 25% on the charging equipment/machinery up to USD
(VFA) – up to approx. USD 19,665 (b) Small - 20% VFA – up to USD
13,110 per station for first 50 stations
52,441 (c) Medium – up to USD 65,551
lCapital subsidy for setting up effluent treatment plant for all EV and [D] CONSUMERS
component manufacturing enterprises: one-time capital subsidy up
to 50% of cost of the effluent treatment plant up to USD 65,551. (I) CAPITAL SUBSIDY
lCapital subsidy for setting up effluent treatment plant for all EV for ln/a
EV cell manufacturing, EV battery pack/module manufacturing and
assembly enterprises: (a) MSME - 50% - up to USD 65,551 (b) Large/ (II) SGST REIMBURSEMENT
Mega/Super mega - 50% - up to USD 262,205
lInvestment promotion subsidy for EV battery manufacturing/ l100% exemption from payment of all taxes on electric non-
assembly enterprises: (a) Micro - 25% VFA – up to USD 19,665 (b) transport and transport vehicles
Small - 20% VFA – up to USD 52,441 (c) Medium – up to USD 65,551;
lLarge/Mega/Ultra/Super Mega EV cell/ battery/ module
manufacturing: 15 per cent subsidy to be offered on capital ln/a
expenditure on land value (fixed value assets) up to a maximum of
50 acres (IV) REGISTRATION FEE EXEMPTION
lProduction linked subsidy of 1% will be given on the company’s ln/a
turnover for a period of five years beginning from the first year of
commercial operations, subject to a maximum cap of 50 per cent
of VFA (V) ROAD TAX EXEMPTION
(II) ELECTRICITY DUTY l100%
ln/a
(VI) ENERGY SALE
l100% exemption of duty/tax on electricity tariff for initial period of
l100% reimbursement of land conversion fee 5 years
(IV) SGST REIMBURSEMENT [E] ADDITIONAL REMARKS
l100% exemption from payment of all taxes on electric non- lAll large, mega, ultra-mega and super-mega enterprises
transport and transport vehicles manufacturing EV, its components, EV cell manufacturing, EV battery
pack/module manufacturing and assembly enterprises, all mega EV
(V) STAMP DUTY EXEMPTION charging infrastructure equipment or component manufacturing,
EV battery swapping infrastructure equipment or component
l100% exemption of stamp duty payable for loan agreements, credit manufacturing enterprises will be eligible for interest free loan on net
deeds, mortgage and hypothecation deeds executed for availing SGST subject to the terms and conditions mentioned in the policy
loans from state government and/or state financial corporation,
national level financial institutions, commercial banks, RRBs, Co-
operative Banks, KVIB/KVIC, Karnataka State SC/ST Development
Corporation, Karnataka State Minority Development Corporation
KERALA
and their institutions which may be notified by the Government
from time to time and for lease deeds, lease-cum-sale, sub-lease and
absolute sale deeds executed in respect of industrial plots, sheds, [A] TERM: 2019
industrial tenements by KIADB, KSSIDC, KEONICS, Industrial Co-
[B] MANUFACTURING
operatives and approved private industrial estates/parks
lFor the aforementioned loan documents, lease deed and sale (I) CAPITAL SUBSIDY:
deeds, registration charges shall be at concessional rate of USD 0.013
per USD 13 (i.e., INR 1 per INR 1,000). ln/a 85
(II) ELECTRICITY DUTY (II) ELECTRICITY DUTY
ln/a ln/a
(III) LAND CONVERSION FEE AND LAND SUBSIDY (III) LAND CONVERSION FEE AND LAND SUBSIDY
ln/a ln/a
(IV) SGST REIMBURSEMENT (IV) SGST REIMBURSEMENT

ln/a ln/a
(V) STAMP DUTY EXEMPTION (V) STAMP DUTY EXEMPTION

ln/a ln/a
[C] CHARGING INFRASTRUCTURE AND BATTERY [C] CHARGING INFRASTRUCTURE AND BATTERY
(I) OTHERS (I) OTHERS
ln/a ln/a
(II) CAPITAL SUBSIDY (II) CAPITAL SUBSIDY
lDC chargers (>=100V): capital subsidy of 25% of the charging
lSmall charging stations (as defined under the policy): 25% capital
station equipment/machinery up to USD 13,110 for the first 100
subsidy of the value of charging equipment/machinery up to USD
stations
1,967 for the first 300 stations
lDC chargers (< 100V): capital subsidy of 25% of the charging
lMedium charging stations (as defined under the policy): 25%
station equipment/machinery up to USD 393 for the first 300 stations
capital subsidy of the value of charging equipment/machinery up to
lOther: 25% capital subsidy of FCI for up to USD 13,110 for the first
USD 2,622 for the first 100 stations
50 BS stations
lLarge charging stations (as defined under the policy): 25% capital
[D] CONSUMERS subsidy of the value of charging equipment/machinery up to USD
13,110 for the first 100 stations
(I) CAPITAL SUBSIDY
[D] CONSUMERS
lPromotional Schemes: (a) Three wheelers: incentives of approx.
USD 393 or 25% of the EV, whichever lower procured from empaneled (I) CAPITAL SUBSIDY
vendors; (b) state tax breaks, road tax exemptions and free permit to
ln/a
fleet drivers; (c) exemption from toll charges, free parking, etc.
ln/a
ln/a

ln/a lFirst 15,000 electric two-wheelers it total electric two-wheelers in 5
years, whichever less, to be charges 1% motor vehicle tax
(IV) REGISTRATION FEE EXEMPTION lFirst 5,000 shared E-Rickshaws or total shared E-Rickshaws in 5
years, whichever less, charged motor vehicle tax at 1%
ln/a lThe first 5,000 electric auto-Rickshaws or total electric auto-
Rickshaws in 5 years, whichever less, charged motor vehicle tax at 1%
(V) ROAD TAX EXEMPTION lThe first 2,000 electric three-wheeler goods carrier or total electric
three-wheeler goods carrier in 5 years, whichever less, charged motor
l100% exempted for the initial 3 years vehicle tax at 1%
lFirst 6,000 electric cars or total electric cars in 5 years, whichever
less, charged motor vehicle tax at 1%
(VI) ENERGY SALE
lFirst 1,500 electric buses or total electric buses in 5 years, whichever
lEnergy to public or bulk charging stations to be offered at a rate less less, charged motor vehicle tax at 1%
than the average during initial 3 years

lConcessions to be provided in electricity tariff, property taxes and
tax breaks as per the IT and ESDM policy. l100% exemption for the first 22,500 electric two-wheelers or total
electric two-wheelers in 5 years, whichever lesser
l100% exemption for the first 7,500 shared E-Rickshaws or total
shared E-Rickshaws in 5 years, whichever lesser
MADHYA PRADESH l100% exemption for the first 7,500 electric auto-Rickshaws or total
electric auto-Rickshaws in 5 years, whichever lesser
l100% exemption for the first 3,000 electric three-wheeler goods
[A] TERM: 2019-2029 carrier or total electric three-wheeler goods carrier in 5 years,
whichever lesser
[B] MANUFACTURING l100% exemption for the first 9,000 electric cars or total electric cars
(I) CAPITAL SUBSIDY: in 5 years, whichever lesser
l100% for the first 2,250 electric buses or total electric buses in 5
ln/a years, whichever lesser
(V) ROAD TAX EXEMPTION [D] CONSUMERS
ln/a (I) CAPITAL SUBSIDY
(VI) ENERGY SALE lDemand Incentives: (a) 1,00,000 e two-wheelers (L1&L2) to be
incentivised at approx. USD 66/kWh up to USD 131 per vehicle; (b)
ln/a 15000 e- wheelers autos (L5M) to be incentivised at approx. USD 66/
kWh up to USD 393 per vehicle; (c) 10,000 e-three-wheeler goods
carrier (L5N) to be incentivised at approx. USD 66/kWh up to USD 393
lAll electric two-wheelers, shared e-rickshaws, Electric Auto per vehicle; (d) 10,000 e-four- wheeler cars (M1) to be incentivised at
Rickshaws, electric three-wheeler goods carriers, electric cars, have approx. USD 66/kWh up to USD 1,967 per vehicle; (e) 10,000 e-four-
100% waiver on parking charges at any urban local body run parking wheeler goods carrier (N1) to be incentivised at approx. USD 66/kWh
facility for 5 years up to USD 1,311 per vehicle; (f ) 1,000 e-buses to be incentivised at
lExpress route permissions given to shared e-rickshaws 10% of vehicle cost up to USD 26,220
lExemption of requirement of operations permit for first 2,000 lScrappage Incentives: (a) two-wheelers (L1 & L2) – up to USD 92;
electric three-wheeler goods carriers or total electric three-wheeler (b) three-wheelers (L5M & L5N) – up to USD 197; (c) four-wheelers
goods carrier in 5 years, whichever less (M1 & N1) – up to USD 328
lMotor Vehicle tax, registration fees and ULB parking fee will be
waived for all other EVs that are eligible for FAME India demand
incentives for the term of the policy ln/a
lThe state government is to provide marginally increased incentives
including land concessions and FAR relaxation with respect to (III) MOTOR VEHICLE TAX EXEMPTION
the incentives that are already been sanctioned under Industrial
Promotion Policy 2010 as applicable with amendments to EV
manufacturing units, as the case may be. The EV manufacturing (IV) REGISTRATION FEE EXEMPTION
units shall be eligible for R&D grants including subsidy on stipend
for research scholars who do quality research in electric mobility and l100%
its components, patent registration and quality certification as per (V) ROAD TAX EXEMPTION
Madhya Pradesh Industrial Promotion Policy 2010 as applicable with
amendments ln/a
(VI) ENERGY SALE
MAHARASHTRA ln/a

ln/a
[A] TERM: 2021-2025
[B] MANUFACTURING
TAMIL NADU
lOEMs can avail the following incentives: (a) assured buyback – 6% of
total vehicle cost capped at approx. USD 131 and (b) battery warranty
[A] TERM: 2020-2030
of at least 5 years – 4% of total vehicle cost capped at approx. USD 79
An OEM can avail both the incentives simultaneously, however the [B] MANUFACTURING
total incentive amount will be limited to approx. USD 157.
(II) ELECTRICITY DUTY l15% capital subsidy on eligible investments over 10 years, in the
ln/a case of intermediate products used in the manufacture of EV and
charging infrastructure, till 31 December 2025. The cost of land shall
(III) LAND CONVERSION FEE AND LAND SUBSIDY not exceed 20% of the total eligible investments reckoned for the
purpose of capital subsidy
ln/a
lSpecial Package for EV Battery Manufacturing: 20% capital subsidy
(IV) SGST REIMBURSEMENT on eligible investments over 20 years (50% subsidy in case of
southern districts). This special package is available for investments
ln/a till 31 December 2025
lAdditional capital subsidy of 20% will be offered over existing
capital subsidy to MSME units
ln/a
[C] CHARGING INFRASTRUCTURE AND BATTERY l100% till 31 December 2025
(I) OTHERS
ln/a
lLand subsidy till 31 December 2022:cLand obtained from SIPCOT,
(II) CAPITAL SUBSIDY SIDCO or other Governmental agencies obtained land: 15% on cost
of land; Southern districts: 50% on cost of land
l60% for the first 15,000 slow public and semi-public charging
stations up to USD 131 (IV) SGST REIMBURSEMENT
l50% for the first 500 moderate and fast public and semi-public l100% SGST paid on the sale of EVs manufactured,
charging stations up to USD 6,555 sold and registered for use in the state will be 87
reimbursed to the manufacturing companies till 31 December 2030 lElectricity Duty Exemption: 100% for 5 years capped at 0.5 Cr
(V) STAMP DUTY EXEMPTION (III) LAND CONVERSION FEE AND LAND SUBSIDY
lEV related and charging infrastructure manufacturing industries in ln/a
the state that obtain land by sale or lease shall be entitled to 100%
exemption on stamp duty for transactions till 31 December 2025 (IV) SGST REIMBURSEMENT
l100% capped at approx. USD 655,512 per year with cumulative cap
of approx. USD 3 million crores over 7 years for mega enterprises
(I) OTHERS
lEmployment incentive in the form of the reimbursement of
employer’s contribution to the EPF for all new jobs created till 31 l100%
December 2025 for a period of one year and shall not exceed USD
629.22 (INR 48,000) per employee
lInterest subvention (EV component, charging manufacturing): (I) OTHERS
6% (Medium industries with loans under TN Industrial Investment
Corporation) till 21 December 2025 lRegistration fees exemption: 100%
lTariff for the supply of electricity to PCS will be determined by
TNERC and it will endeavour to fix the tariff as not more than the 15% (II) CAPITAL SUBSIDY
above the average cost of supply ln/a
(II) CAPITAL SUBSIDY [D] CONSUMERS
ln/a (I) CAPITAL SUBSIDY
[D] CONSUMERS lRetro-fitment incentive at 15% of the retro-fitment cost capped
(I) CAPITAL SUBSIDY at approx. USD 197 per vehicle for first 5,000 retrofit 3-seater auto
rickshaws in Telangana
ln/a
ln/a
ln/a
ln/a
ln/a
l100% for the first 2,00,000 electric two-wheelers purchased &
lWaiver on Registration charges/fees will be done as per GoI registered within Telangana
notification l100% for the first 20,000 electric three-wheelers purchased &
registered within Telangana
(V) ROAD TAX EXEMPTION l100% for the first 5,000 electric four-wheelers commercial
l100% till 30 December 2022 passenger vehicles purchased & registered within Telangana
l100% for the first 10,000 electric goods carriers purchased &
(VI) ENERGY SALE registered within Telangana
ln/a l100% for the first 5,000 electric four-wheelers private vehicles
purchased & registered within Telangana
[E] ADDITIONAL REMARKS l100% for the first 500 electric buses purchased & registered within
Telangana
lPermit fees for Auto Rickshaw, electric transport vehicles will be
l100% for the electric tractors purchased & registered within
waived for e-autos till 30 December 2022; waiver of requirement of
Telangana
permit for the three-wheeler goods, e-carriers as well as electric Light
Goods carrier
l100% for the first 2,00,000 electric two-wheelers purchased &
TELANGANA l100% for the first 20,000 electric three-wheelers purchased &
l100% for the first 5,000 electric four-wheelers commercial
[A] TERM: 2020-2030 passenger vehicles purchased & registered within Telangana
l100% for the first 10,000 electric goods carriers purchased &
[B] MANUFACTURING registered within Telangana
(I) CAPITAL SUBSIDY: l100% for the first 5,000 electric four-wheelers private vehicles
purchased & registered within Telangana
lCapital investment subsidy: 20% of investment up to USD 3 million l100% for the first 500 electric buses purchased & registered within
for Mega enterprises Interest subvention: 5.25% over 5 years up to Telangana
USD 655,512 l100% for the electric tractors purchased & registered within
Telangana
lPower Tariff Discount: 25% for 5 years capped at approx. USD (VI) ENERGY SALE
655,512 for Mega Enterprises ln/a
[E] ADDITIONAL REMARKS (IV) REGISTRATION FEE EXEMPTION
lSubsidy: 60% with 10% reduction Year on Year - for 5 years; capped lFirst 1,00,000 buyers of private EVs manufactured within the state
at approx. USD 655,512 of Uttar Pradesh over the term of the policy will be provided 100%
lStamp Duty/ Transfer Duty/ Registration Fees Reimbursements: exemption form vehicle registration fees
100% on first, 50% on second transaction
lLease Rental Assistance, Assistance in Patent Filing, Reimbursement
of Quality Certification costs, Cleaner Production cost reimbursement,
Exhibition Cost Reimbursements, Skill Development Assistance. lFirst 1,00,000 buyers of private EVs manufactured within the state
of Uttar Pradesh over the term of the policy will be provided
l100%exemption from road tax for electric two-wheelers
l75% exemption from road tax for other EVs
UTTAR PRADESH
(VI) ENERGY SALE
[A] TERM: 2019-2024 ln/a
[B] MANUFACTURING
lTechnology transfer for alternate clean fuel mobility: Anchor
lThe Large, Anchor EVMUs/EBUs and MSME units plant (as defined EBUs: 100% cost - 5 vendor units & 75% cost - next 5 vendor units -up
in the policy) will be provided incentives at par to those provided to USD 65,551 •Ultra mega battery plant: 50% cost -up to USD 13,110
to industrial units under UP Industrial Investment and Employment lFor sustainable and green production measures, Large, Anchor
Promotion Policy, 2017. These incentives include capital interest EVMUs/EBUs and Service units (as defined in the policy) will be
subsidy, infrastructure interest subsidy, industrial quality subsidy, provided with (a) for setting up Waste Treatment plant – subsidy of
Stamp duty and electricity duty exemption, SGST reimbursement, 50% on annual interest on loan taken in form of reimbursement to
etc. set up Waste Treatment Plant for 5 years upto maximum USD 131,102
lService units (as defined under the policy) shall be provided with per unit; (b) For Battery Recycling – Capital Interest Subsidy at 50%
the following incentives – (a) Capital Subsidy at 25% on FCI (excluding per annum for 5years in the form of reimbursement on loan taken
land cost) to first 100 charging stations subject to maximum Rs 6 for procuring equipment/machinery for battery recycling subject to
lakh per charging station; (b) To set up Hydrogen enabled refuelling maximum ceiling of USD 131,102 per annum.
Infrastructure – 50% Capital interest subsidy on FCI (excluding
land cost) will be provided for setting up hydrogen generation and
fuelling plants in the form of reimbursement to first 10 units in UP,
subject to maximum USD 65,551 per unit over the term of the policy UTTARAKHAND
(II) ELECTRICITY DUTY [A] TERM: 2019-2024
l100% [B] MANUFACTURING
(III) LAND CONVERSION FEE AND LAND SUBSIDY (I) CAPITAL SUBSIDY:
lFor mega anchor and ultra-mega battery plant (as defined in the lInterest Subsidy: Applicable for 5 years from the date of
policy): 25% cost of land at prevalent circle rate or purchase price, commercial production, on the term loans availed from scheduled
whichever is less, only on land purchased in the notified areas in Bank/ financial Institution. Rate of subsidy to be administered as
Uttar Pradesh below: For MSMEs – 5-10% For Heavy Industries – 5% For Large – 7%
(Max. USD 32,776), Mega – 7% (Max. USD 45,886) Ultra Mega – 7%
(IV) SGST REIMBURSEMENT (Max. USD 65,551) EPF reimbursement: 50% reimbursement for 10
l100% years with ceiling of approx. USD 262,205 for units employing 100 or
more Skilled/ Semi skilled labour on full time basis
(V) STAMP DUTY EXEMPTION lEnvironmental protection Incentive: For Large Projects: 30% (Up
to USD 26,220) For Large, Mega and Ultra Mega Projects: 30% (Up to
l100%
USD 65,551)
[C] CHARGING INFRASTRUCTURE AND BATTERY (II) ELECTRICITY DUTY
(I) OTHERS l100% for 5 years from the date of commencement of commercial
production
ln/a
lFor Large Industrial investment – 5% (in case of 100% payment at
ln/a
the time of allotment) For large – 15%, Mega – 25%, Ultra mega – 30%
[D] CONSUMERS
(I) CAPITAL SUBSIDY
lFor MSME & Large (investment upto USD 6 million) - 30% for 5 years
ln/a after adjustment of input tax credit (for B2C sale)
lFor investment above approx USD 6 million - 50% for 5 years
ln/a
lFor MSMEs – 50-100% depending on the category
(III) MOTOR VEHICLE TAX EXEMPTION lFor Heavy Industrial investment: 50%
lFor Large, Mega & Ultra mega investment: 50%
ln/a 89
[C] CHARGING INFRASTRUCTURE AND BATTERY Investment Promotion Policy, 2016
lCommercial public EV charging stations will be eligible for 25%
(I) OTHERS
capital subsidy on equipment/machinery (limited up to USD 13,110
ln/a per station) for first 250 commercial public EV charging stations
(II) CAPITAL SUBSIDY [D] CONSUMERS
l100% exemption of stage carriage permit for Commercial vehicles (I) CAPITAL SUBSIDY
for 5 years from the date of Registration lAll incentives as mentioned in Chapter 6 of Bihar Industrial
l100% exemption from paying Motor Van Tax for 5 years from the Investment Promotion Policy, 2016
date of registration lIn addition to the above: End user subsidy at 15% of base price of
[D] CONSUMERS the EV to be provided on first 1,00,000 EVs manufactured (segregated
into two wheeler-24,000; three-wheeler-70,000; four-wheeler-4,000;
(I) CAPITAL SUBSIDY Four-wheeler hybrid- 1,000 and private/public passenger bus -1,000),
ln/a up to USD 26,220 per bus, approx. USD 1,311 for four-wheeler
(including hybrid ones), Approx. USD 157 for three-wheeler and
(II) SGST REIMBURSEMENT approx. USD 65 for two-wheeler
lSpecial incentives of approx. USD 131/- shall Be given on Electric
ln/a Rickshaw using Lithium ion battery instead of conventional lead acid
battery.
(III) MOTOR VEHICLE TAX EXEMPTION lTop up subsidy of approx. USD 104/- if the end user is below poverty
ln/a line or belong to S.C./S.T. category
(IV) REGISTRATION FEE EXEMPTION (II) SGST REIMBURSEMENT
ln/a ln/a

(V) ROAD TAX EXEMPTION (III) MOTOR VEHICLE TAX EXEMPTION
ln/a ln/a
(VI) ENERGY SALE (IV) REGISTRATION FEE EXEMPTION
ln/a l100%
[E] ADDITIONAL REMARKS (V) ROAD TAX EXEMPTION
lFor skill development training in EV/HEV component manufacturing l100%
will be entitled for training reimbursement USD 13 per month for
50 trainees (VI) ENERGY SALE
ln/a
BIHAR [E] ADDITIONAL REMARKS

lAdditional incentive of approx. USD 92/- per kWh shall be given
[A] TERM: 5 years from date of notification on electric rickshaw and e-two wheelers using Lithium ion battery
instead of conventional lead acid battery.
[B] MANUFACTURING lInterest subvention of 10% to buyer of light electric freight vehicle
(I) CAPITAL SUBSIDY: or e-bus
lSpecial grant of approx. USD 131 per kWh to manual pedal rickshaw
lAll incentives as mentioned in Chapter 6 of Bihar Industrial puller for conversion/upgradation to 100% electric mobility. For
Investment Promotion Policy, 2016 pedal rickshaw fleet owner interest subvention of 10% on loan taken
for conversion/upgradation to 100% electric mobility.
lTop up subsidy of approx. USD 105/- on ex-showroom price if the
lAcross the state, the rate of Electrical power required for EV charging end user is below poverty line or belong to MBC or S.C./S.T.
shall be industrial rate of electricity.

ln/a CHANDIGARH
[A] TERM: 5 years from date of notification
ln/a
[B] MANUFACTURING
ln/a
ln/a
(I) OTHERS
ln/a
ln/a
(II) CAPITAL SUBSIDY (III) LAND CONVERSION FEE AND LAND SUBSIDY
lAll incentives as mentioned in Chapter 6 of Bihar Industrial ln/a

(IV) SGST REIMBURSEMENT (III) LAND CONVERSION FEE AND LAND SUBSIDY
ln/a ln/a
(V) STAMP DUTY EXEMPTION (IV) SGST REIMBURSEMENT

ln/a l100% for 5 years
[C] CHARGING INFRASTRUCTURE AND BATTERY (V) STAMP DUTY EXEMPTION

(I) OTHERS l100%
ln/a [C] CHARGING INFRASTRUCTURE AND BATTERY
(II) CAPITAL SUBSIDY (I) OTHERS
l30% subsidy on installation of home chargers ln/a
l15% subsidy (on total investment) for charging infrastructure
companies to set up PCS (II) CAPITAL SUBSIDY
lIncentives provided to batter recycling of Rs 2,000 per passenger lState government to incur all electricity infrastructure cost, up
vehicle and Rs 20,000 per electric bus to battery recycling facility to USD 10,488 associated with installation of EVSEs and charging
operators located in the city stations.
lFor solar-powered charging stations, the state shall provide a 20%
[D] CONSUMERS
capital subsidy for installation
(I) CAPITAL SUBSIDY
[D] CONSUMERS
lDirect subsidy of approx. USD 262 for first 3,000 buyers of Electric
two-wheelers & three-wheelers (I) CAPITAL SUBSIDY
lFree one-year insurance for first 1,000 EV buyers, Group Purchase lTwo & Three Wheelers: Purchase incentive of approx. USD 131 per
Incentive of Rs 30,000 per vehicle to all legal entities that will make kWh of battery capacity till approx. USD 393
a one-time purchase of more than a certain number of EVs on top of lFour Wheelers: Purchase incentive of approx. USD 131 per kWh of
other incentives/subsidies. battery capacity till approx. USD 66
(II) SGST REIMBURSEMENT lScrapping Incentive of for scrapping and de-registering old ICE
vehicles registered in Goa: two wheelers reimbursement up to USD
ln/a 66; e-autos up to USD 131; e-carriers up to USD 131.
lInterest subvention of 5% on loans and/or hire purchase scheme
(III) MOTOR VEHICLE TAX EXEMPTION for purchase of e-autos, E- rickshaws, E-carts and Goods carriers shall
ln/a be provided by Convergence Energy Services Limited.
(IV) REGISTRATION FEE EXEMPTION (II) SGST REIMBURSEMENT

l100% exemption till 2024 ln/a

(V) ROAD TAX EXEMPTION (III) MOTOR VEHICLE TAX EXEMPTION
l100% exemption till 2024 ln/a
(VI) ENERGY SALE (IV) REGISTRATION FEE EXEMPTION
lJoint Electricity Regulatory Commission has fixed Rs 4 per unit and l100% during term of the policy
Rs 100 as a fixed monthly charge on electricity bill for the PCS
l100% during term of the policy
lAdditional road tax and pollution cess on all ICE vehicles after 2025
(VI) ENERGY SALE
lElectricity will be provided at a lowered power tariff, currently
GOA of USD 0.055 (INR 4.2)/unit, as determined by the Joint Electricity
Regulatory Commission on an annual basis
[A] TERM: 5 years from date of notification [E] ADDITIONAL REMARKS
[B] MANUFACTURING ln/a
lUpto 20% of FCI for Pioneer, Mega and Large Units (as defined
in the policy). 30% of the cost of capital in case of Micro, Small & HARYANA
Medium Units
lPrice preference at the rate of 15% on the purchase made by the
Government Departments is available to the registered Small- Scale [A] TERM: 2018-2023
Units
[B] MANUFACTURING
lSupport to utilities in construction of effluent treatment plant (ETP)
with 50% capital subsidy (I) CAPITAL SUBSIDY:
l25% of FCI up to a maximum of approx. USD 19,665 for
(II) ELECTRICITY DUTY micro industries.
l100% reimbursement for 5 years for utilities 91
l20% of FCI up to a maximum of approx. USD 52,441 for small and coupon of Rs 75,000 on purchase of Electric cars (below Approx. USD
approx USD 65,551 for medium industries. 13,110); (d) coupon of Rs 100,000 on purchase of Electric cars (above
l10% of FCI up to a maximum of approx USD 1 million for first two USD 13,110)
units, under large industries, in each segment of EVs (two, three and
four-wheelers buses), battery and charging equipment, hydrogen
storage & fueling equipment manufacturing. lReimbursement of the SGST for services rendered, accrued to
l10% of FCI up to a maximum of approx. USD 2 million for first two the state, for firms involved in services such as leasing of fleet of
units, under mega category, in each segment of EVs (two, three and EVs, owning or operating EV fleets and providing charging/ battery
four-wheelers, buses), battery and charging equipment, hydrogen swapping/ Hydrogen stations for recharging/ refueling EVs, until
storage & fueling equipment manufacturing 2024
l25% subsidy, for micro, small, medium enterprise and large projects,
for sustainable green measures on total fixed capital investment of (III) MOTOR VEHICLE TAX EXEMPTION
the project (excluding cost of land, land development, preliminary
ln/a
and pre-operative expenses and consultancy fees) with a ceiling of
USD 6 million. (IV) REGISTRATION FEE EXEMPTION
(II) ELECTRICITY DUTY ln/a
l100% for 10 years
l100% exemption of road tax on transportation EVs purchased
lThe Government of Haryana will allocate 100 to 200 acres of land within Haryana state and manufactured within the State, applicable
for developing EV Parks over the term of the policy.
(IV) SGST REIMBURSEMENT (VI) ENERGY SALE
l100% net SGST to be reimbursed for a period of 5 years for micro lGovernment will provide fixed power cost reimbursement @ Rs
& small, 7 years for medium, 10 years for large industries. This 3.00 per unit for a period of 5 years from the date of commencement
reimbursement will be limited to 100% of capex or for the period of commercial production.
stated, whichever is earlier.
(V) STAMP DUTY EXEMPTION lWater Supply will be made at 50% of the price of existing industrial
l100% of stamp duty and transfer duty paid by the industry on supply tariff for the initial 3 years from the date of commencement of
purchase or lease of land meant for industrial use will be reimbursed. commercial production. The state government will reimburse 25% of
l100% of stamp duty for lease of land/shed/buildings, mortgages the cost of water treatment plant wherever necessary, with a limit of
and hypothecations will be reimbursed. approx USD 262,205 on this subsidy
lStamp duty will be reimbursed only one time on the land. Stamp l100% interest free loans to the state government employees for
duty will not be waived on subsequent transactions on the same purchase of EVs in the State.
land. lAll the registered EVs will be exempted from paying of state toll tax.
lThe dealers of EVs (Non-Transport) will be exempted from
[C] CHARGING INFRASTRUCTURE AND BATTERY submitting of Bank Guarantee of approx USD 1,311 for Online Dealer
Point Registration in the State.
(I) OTHERS
lEVs will be registered on priority basis with a minimum Token fee of
l100% net SGST reimbursement for purchase of fast chargers (Direct USD 1.31 (INR 100)
Current (DC) chargers of capacity 100 Volt and above) lStipend of approx USD 131 per employee per year to a maximum
l100% net SGST reimbursement for purchase of advanced batteries of first 50 employees for a single company for micro, small, medium
for BEV swapping stations/ battery banks. and large firms
lDC Chargers (100 Volt and above): Capital Subsidy of 25% upto a
maximum subsidy of approx. USD 13,110 of the value of the charging MEGHALAYA
station equipment/ machinery
lDC Chargers (Below 100 Volt): Capital Subsidy of 25% upto a
maximum subsidy of approx USD 393 of the value of the charging [A] TERM: 5 years from the date of its notification
station equipment/machinery for first 300 charging stations/battery
[B] MANUFACTURING
banks.
lCapital subsidy of 25% of FCI (for eligible assets excluding cost of (I) CAPITAL SUBSIDY:
battery inventory) up to a maximum subsidy of approx. USD 13,110
ln/a
for swapping stations/ battery banks for the first 50 stations will be
provided. (II) ELECTRICITY DUTY
[D] CONSUMERS ln/a
(I) CAPITAL SUBSIDY
l30% subsidy on road price of EV in form of reimbursement ln/a
l30% subsidy on road price of EV in form of reimbursement directly
to the buyer in the state on purchase of EV and to the financer, if the (IV) SGST REIMBURSEMENT
EV is hypothecated, applicable over the Term of the policy ln/a
lExtra Incentives for buyers who intends to purchase the following
categories of EV within a period of six months from the date of issuance
of the policy: (a) coupon of Rs 25,000 for purchase E-Rickshaw/Carts;
(b) coupon of Rs 50,000 on Electric based light motor vehicles; (c) ln/a
[C] CHARGING INFRASTRUCTURE AND BATTERY [C] CHARGING INFRASTRUCTURE AND BATTERY
(I) OTHERS (I) OTHERS
ln/a ln/a
(II) CAPITAL SUBSIDY (II) CAPITAL SUBSIDY

ln/a lGrant of approx USD 66 for purchase of charging equipment for the
first 20,000 private charging points
[D] CONSUMERS l25% capital subsidy to the selected energy operators for the first
(I) CAPITAL SUBSIDY 500 charging stations
lTwo Wheelers: Rs 10,000/- per kWh for the first 3500 electric two [D] CONSUMERS
wheelers purchased
(I) CAPITAL SUBSIDY
lThree wheelers: Rs 4,000/- per kWh for the first 200 electric three
wheelers purchased lTwo Wheelers: 15% up to USD 66 •Three Wheelers: 15% up to USD
lFour Wheelers: Rs 4,000/- per kWh for the first 2500 four-wheeler 157 • Four Wheelers: 15% up to USD 1,311
EVs purchased purchase subsidy @ Rs 4,000/- per kWh for the first lOthers: •e-buses: 10% up to USD 26,220 •Goods carriers: Purchase
30 strong hybrid four-wheeler EVs purchased purchase subsidy @ Rs incentive of approx USD 393 for the first 5,000 electric goods carriers
4,000/- per kWh for the first 30 EV Buses lFor pure electric buses: (a) subsidy of 10% (maximum limit of
approx USD 26,220 per vehicle) shall be extended to the buyers for
passenger buses registered in the State; (b) 100% SGST on the sale
ln/a of electric buses sold and registered in the state will be reimbursed
during policy period; (c) 100% exemption on road tax & registration
(III) MOTOR VEHICLE TAX EXEMPTION fees for the first four years will be made available; (d) Interest
subvention of 5% on loans for purchase of Electric Buses would be
ln/a
made available
(IV) REGISTRATION FEE EXEMPTION lFor goods carriers: (a) Individual and fleet Owners shall be given
purchase incentive of approx USD 393 to the first 5,000 electric
goods carriers to be registered in the State; (b) Interest subvention
of 5% on loans for purchase of electric goods carriers in the policy
(V) ROAD TAX EXEMPTION period; (c) 100% SGST on the sale of electric goods carriages sold and
registered in the state will be reimbursed for the policy period; (d)
l100% during the term of the policy 100% exemption on road tax & registration fees for the policy period
will be made available; (e) exempted from prohibition on plying and
(VI) ENERGY SALE idle parking on identified roads of the state during specified timings
as notified by the local authorities from time to time; (f ) scrapping
ln/a incentive shall also be extended for old ICE goods carriages registered
in the state as per the scrapping Policy announced by Gol.
ln/a
l100% SGST reimbursement to the Energy Operators for purchase of
batteries to be used in swapping stations.

ODISHA (III) MOTOR VEHICLE TAX EXEMPTION
ln/a
[A] TERM: 2021-2026 (IV) REGISTRATION FEE EXEMPTION
[B] MANUFACTURING ln/a
lMicro and small enterprise: 25% of the capital investment made in
ln/a
plant and machinery up to USD 131,102
lMicro and small enterprise (owned by SC/ST/differently abled/ (VI) ENERGY SALE
women): 30% of the capital investment made in plant and machinery
up to USD 163,878 ln/a
lMicro and small enterprise (set up in industrially backward districts):
Additional 5% capital investment subsidy [E] ADDITIONAL REMARKS
(II) ELECTRICITY DUTY lThere shall be open permit for autos (three wheelers)
l100% interest free loans would be made available to State
ln/a Government employees for purchase EVs
lInterest subvention to public for purchasing personal EVs.
ln/a
(IV) SGST REIMBURSEMENT PUNJAB

l100%
[A] TERM: 5
ln/a 93
[B] MANUFACTURING manufactured in Punjab, the maximum capital subsidy shall be 50%
(limited up to a total of approx. USD 1,310.86 i.e., INR 1 Lakh per
charging point)
ln/a
[D] CONSUMERS
(I) CAPITAL SUBSIDY
l100% exemption from electricity duty for 15 years
ln/a
l100% exemption from Change of Land Use / External Development
ln/a
charges for anchor units

(IV) SGST REIMBURSEMENT (III) MOTOR VEHICLE TAX EXEMPTION
lFor Anchor Units, 100% reimbursement of net SGST for a period of l100% during policy period. Additionally for vehicles manufactured
15 years subject to maximum 200% of FCI in Punjab, this waiver shall be applicable for a period of 10 years.
(V) STAMP DUTY EXEMPTION (IV) REGISTRATION FEE EXEMPTION
ln/a l100% for e-rickshaws
[C] CHARGING INFRASTRUCTURE AND BATTERY (V) ROAD TAX EXEMPTION
(I) OTHERS l100%
lPunjab State Electricity Regulatory Commission though its order (VI) ENERGY SALE
dated 27 May 2019 has defined EV Charging Stations as a separate ln/a
category under Single Part Tariff rate of approx. USD 0.079 (INR 6.00)
per kWh under the Schedule of Tariff applicable for Non-Residential
Supply (NRS) category. This is also applicable for fleet charging/ [E] ADDITIONAL REMARKS
swapping stations l100% waiver on Permit Fee during policy period. Additionally, for
l100% electricity duty exemption for the policy period) for EV vehicles manufactured in Punjab this waiver shall be applicable for a
Charging points period of 10 years.
(II) CAPITAL SUBSIDY lEmployment generation subsidy of approx. USD 472 per male
employee per year for a period of 5 years and approx. USD 629 per
lFirst 1,000 charging points shall be eligible for 25% capital subsidy employee per year for a maximum period of 5 years in case of females
on equipment/machinery (limited up to a total of approx. USD 655.43 and SC/ST/OBC employee (as certified by a government agency). This
(Rs. 50,000) per charging point). In case the charging equipment is will be applicable without any domicile restriction
ABBREVIATION
ACC - Advanced Chemistry Cell Development Authority
AMP - Automotive Mission Plan i.e. - that is
ARAI - Automotive Research Association of India kWh - Kilo Watt per hour
AIS - Automotive Industry Standards Km - Kilometer
AISC - Automotive Industry Standard Committee MoST - Ministry of Science and Technology
AC - Alternate Current MoP - Ministry of Power
BS - Bharat Stage MoHI&PE/MHI - Ministry of Heavy Industries and
BIS - Bureau of Indian Standards Public Enterprises
BEVs - Battery Electric Vehicles MoRTH - Ministry of Road Transport and Highways
BEE - Bureau of Energy Efficiency MoHUA - Ministry of Housing and Urban Affairs
CAN - Central Nodal Agency MV Act - Motor Vehicle Act, 1988
CEA - Central Electricity Authority MSME - Micro, Small & Medium Enterprises
CFEES - Centre for Fire Explosive and NMEM - National Mission on Electric Mobility
Environment Safety NCT- National Capital Territory
CEO - Chief Executive Officer NITI - National Institution for Transforming
COP 21 - 21st Conference of Parties India NAPCC
CPA - Consumer Protection Act, 1986 NEMMP - National Electricity Mobility Mission Plan
CEEW - Council on Energy, Environment and Water NBEM - National Board for Electric Mobility
CMVR - Central Motor Vehicles Rules NCEM - National Council for Electric Mobility
DHI - Department of Heavy Industries NAB - National Automotive Board
DC - Direct Current NAPCC - National Action Plan for Climate Change
DST - Department of Science and Technology NGT - National Green Tribunal
DISCOMS - Distribution Companies OEM - Original Equipment Manufacturers
EVSE - Electric Vehicle Supply Equipment PLI - Production Linked Incentive
EV/EVs - Electric Vehicle/ Electric Vehicles PCS - Public Charging Station
EPA - E nvironment Protection Act, 1986 PISC - Project Implementation and Sanctioning
Etc - Etcetera Committee
FAME - Faster Adoption and Manufacturing of PSA - Principal Scientific Advisor
(Hybrid &) Electric Vehicles PMP - Phased Manufacturing Programme
FCI - Fixed Capital Investment R&D - Research and Development
GWh - Giga Watt per hour Rs./Rs - Indian Rupee
GFCS - Global Framework for Climate Services SEZ - Special Economic Zone
GST - Goods and Services Tax TPEM - Technology Platform for Electric Mobility
GW - Giga Watt UNFCCC - United Nations Framework Convention
GDP - Gross domestic product on Climate Change
ICE - Internal Combustion Engine USD - United States Dollars
INDC - Intended Nationally Determined UT - Union Territory(s)
Commitments WHO - World Health Organisation
INR - Indian National Rupees WCC 3 - World Climate Conference 3
IRDAI - Insurance Regulatory and
95
ACKNOWLEDGEMENTS
EY CONTRIBUTERS
Srihari Mulgund, New Age Mobility Partner, EY, Indus Law and IVCA would like to thank Akshay
EY-Parthenon Gupta, Executive Director, Kotak Infrastructure
Praveen Pothumahanty, Director, EY-Parthenon Funds; Anand Daniel, Partner, Accel; Ankur Bansal,
Shashank Vedururu, Senior Associate, Director & Co-Founder, BlackSoil; Anshu Kapoor,
EY-Parthenon President & Head, Investment Management,
Varun Devarakonda, Senior Associate, Edelweiss Wealth Management; Arpit Agarwal,
EY-Parthenon Director, Blume Ventures; Ashish Taneja, Partner,
Kamal Suri, Associate Director, EY-Parthenon growX ventures; Caitlin Walsh, Managing Director,
Rohit Sabnis, Senior Associate, EY-Parthenon Growth Equity, CPP Investments; Ishpreet Gandhi,
Founder & Managing Partner, Stride Ventures;
INDUSLAW Naganand Doraswamy, Founder & Managing
Kartik Ganapathy, Founding Partner, IndusLaw Partner at Ideaspring Capital; Nikhil Khattau,
Saurav Kumar, Partner, IndusLaw Managing Partner, Mayfield India; Padmanabh
M. Arun Kumar, Partner, IndusLaw Sinha, ED & CIO, Growth Equity, NIIF; Rajinder
Swathi Sreenath, Principal Associate, IndusLaw Balaraman, Managing Director, Matrix India;
Ritvika Thakur, Sr. Associate, IndusLaw Rutvik Doshi, Managing Director, Athera Venture
Ahona Pal, Associate, IndusLaw Partners; Sonal Saldanha, VP, 3one4 Capital; TC
Shreya Jain, Associate, IndusLaw Meenakshisundaram (TCM), Founder and Vice
Vidit Mehra, Associate, IndusLaw Chairman, Chiratae Ventures and Varsha Tagare,
Managing Director, Qualcomm Ventures for their
IVCA support and contribution to the report.
Rajat Tandon, President, IVCA | rajat.tandon@ivca.in
Aakriti Bamniyal, Senior Vice President, IVCA |
aakriti@ivca.in
Sumeet Shetty, AVP, IVCA | sumeet@ivca.in
ABOUT EY
97
ABOUT INDUS LAW
INDUSLAW is a top-tier Indian Law Firm, providing legal Our lawyers are multi-skilled, experienced, and recognized for
l
services to a wide range of International & Domestic clients their strong legal, commercial and business acumen.
across a variety of sectors. With over 400 lawyers including Providing practical and solution-oriented advice to best serve
l
more than 60 Partners spread across Bengaluru, Chennai, Delhi, the client’s needs.
Hyderabad & Mumbai, we have been fortunate to partner with Committed to staying at the forefront of the subject of law
l
and contribute significantly to many established businesses and a strong emphasis on mitigating our clients risks and
and new economy companies. The firm was awarded Client exposure.
Service Firm of the year by Chambers and Partners in 2019. Maintaining a proactive and future-facing focus.
l
Professional Services
We are a full-service law firm offering advice and counsel
l Mission
across a broad spectrum of practice areas. Be a new age law firm generating thought leadership and
l
Led by a team of experts who work as an integrated unit to
l delivering exceptional advice and services.
provide the best for our clients. Client care is a cornerstone of our practice, and we leave no
l
Clients and our people are at the heart of everything we do.
l stone unturned to attend to client requirements.
As trusted advisors, we pursue the right opportunities
l Creating empowered and thorough practitioners with the
l
building reputation and confidence with our clients. ability to innovate and a passion for the law.
To be the employer of choice for legal professionals in this
l
Team country.
Core Values
Our culture Inventive, Solution- Synergy Committed to Synergy

adaptable and oriented approach for excellence
open-minded efficiency
PRACTICE AREAS OF INDUSLAW
Anti-Bribery & Anti-Corruption including

Joint Ventures & Collaborations including cross-border
investigations and compliance in the context of Indian
partnerships and strategic alliances
and global anti-corruption law
Banking & Finance including project finance,

Litigation & Dispute Resolution including arbitration
cross-border financing and structured financing
and conciliation
Capital Markets & International Offerings including

PIPEs, IPOs, QIPs, ADRs and GDRs Mergers & Acquisitions including structuring and
negotiating transactions
Competition Law including merger control and

anti-trust risk analyses and representation before
regulatory bodies Private Equity, Venture Capital & Fund Investment
including sector specific funds, seed stage to late stage
Corporate Advisory including securities law

Projects & Project Financing including bankability
reviews, EPC, O&M, Concession Agreements, PPAs and
finance documentation
Employment Law including investigations and

employee management
Real Estate including title opinions, acquisition, sale,
lease and development of real estate
Energy, Infrastructure & Natural Resources including
M&A, regulatory, EPC, project financing and private
equity investments
Technology, Media & Telecom including SaaS
agreements, privacy, data protection and regulatory
advice relating to telecommunications, products and
Fund Formation including venture capital, private services
equity and hedge funds
Taxes including transaction / investment structuring, tax

litigation, exchange control regulations, fund structures,
Intellectual Property including protection,
AIF & NBFC regulations, succession planning and
enforcement and licensing
international tax matters
99
ABOUT IVCA
Established since more than two decades, by industry professionals, the Indian Venture
& Alternate Capital Association (IVCA) is a not-for-profit body and the apex Industry
association for Alternate asset investors in India.
We represent the interests of PE/VC industry, Real estate, Infrastructure and Credit funds,
Limited Partners, Family offices & Corporate VC’s investing in India.
With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants,
lawyers and other knowledge partners as members, it serves as a powerful platform for all
stakeholders to interact with each other. Being the face of the Industry, it helps establish
high standards of governance, ethics, business conduct and professional competence.
IVCA promotes stable and long-term capital flow in India. With a prime motive to support
the alternative investments into startups and growth companies, IVCA facilitates advocacy
with policy makers, research institutions, universities, trade associations and other
relevant organizations.
With a prime motive to support the ecosystem, it facilitates contact with policy makers,
research institutions, universities, trade associations and other relevant organizations.
Thus, support entrepreneurial activity, innovation and job creation.
NOTES
101

Ey Electrifying Indian Mobility Report

Uploaded by

Copyright:

Available Formats

Ey Electrifying Indian Mobility Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ey Electrifying Indian Mobility Report

Uploaded by

Copyright:

Available Formats

INDIAN VENTURE AND ALTERNATE CAPITAL ASSOCIATION

1 Secondary Research, Secondary Reports, EY-P analysis

2.1 Global Framework For

Vehicle sales in India (in Million units)

CY20 CY21 CY22E CY23E CY24E CY25E CY26E CY27E

Source: Secondary research, secondary reports, EY-P analysis

High EV adoption by CY27 can decrease particulate matter by ~39%*.

2.3 Impact of EVs on Economic

Source: Secondary research, secondary reports, EY-P analysis

VEHICLE COMPONENTS AND TECHNICAL DIFFERENCE IN ICE VS. EV:

TOTAL COST OF OWNERSHIP (TCO) AND ITS EVOLUTION:

4.1 Total EV Sales

e2W (no. of units sold)

40,000 26,261 27,271

2015 2016 2017 2018 2019 2020 2021 Q12022

e3W Auto (no. of units sold)

e4W (no. of units sold)

2015 2016 2017 2018 2019 2020 2021 Q12022

Source: Secondary research, secondary reports, EY-P analysis

2017 2018 2019 2020 2021 Q12022

Source: Secondary research, secondary reports, EY-P analysis

State-wise EV Registrations - 2021

Two-wheelers Three-wheelers Passenger vehicles Others

Source: Secondary research, secondary reports, EY-P analysis

6 Secondary reports referring to Vahan website and Telangana Regional Transport

Total EV Sales (no. of units sold)

EV as total % of Automobiles – Current and Projections

EV as percentage of total vehicle sales

CY20 CY21 CY22E CY23E CY24E CY25E CY26E CY27E

Source: Secondary research, secondary reports, EY-P analysis

Global EV sales in million units - CY21 (segmented by regions)

Hybrid EVs Battery operated EVs

Source: Secondary research, secondary reports, EY-P analysis

- Padmanabh Sinha, ED & CIO, Growth Equity, National Investment

Government/Policy Makers (MoP, MHI, MoRTH etc.)

5.1 OEMS/ Start-ups

OEM Market share in high speed segment

Hero electric Okinawa Ather Ampere

OEM Market share, 2021 Model-wise Market share, 2021

Tata MG Hyundai Mahindra Tata Nexon EV MG EZS Tata Tigor Others

Joint venture between

Joint venture between Exide

Plans to invest INR 4,000 Cr

India-based energy storage

Other battery technology manufacturers in India include:

One of the leading suppliers

MAHLE GmbH is a German

Global tier-1 automotive

Lucas TVS is a part of TVS

One of the leading auto

1st Q 2022 2022E 2023E 2024E 2025E 2026E 2027E

Other fleet operators in India are:

Alt Mobility MoEVing Prakriti E-mobility

- Caitlin Walsh, Managing Director, Growth Equity, CPP Investments

- Nikhil Khattau, Managing Partner, Mayfield India

6.1 EV Penetration by Segment

e2W (no. of units sold)

e3W (no. of units sold)

The present low penetration of e4Ws is due to various factors.

4W eV (no. of units sold)