INDIA SCENARIO

• The Indian automobile industry is the 5th largest in the world and is expected to become the third largest by 2030, with a total of 8.7 lakh active EVs on Indian roads (December 2021). As the population rises and demand for vehicles grows, dependence on conventional energy resources is not a sustainable option as India imports close to 80% of its crude oil requirements.
• According to information aggregated by India Energy Storage Alliance (IESA), the consumption of batteries is expected to be more than 36 GWh by 2025. During the 2020-2027 period, the EV sector is assessed to consume around 250 GWh of batteries.
• Over the last three years, 0.52 million EVs were registered in India. NITI Aayog further aims to achieve EV sales penetration of 70% for all commercial cars, 30% for private cars, 40% for buses, and 80% for two- and three-wheelers by 2030. This is in line to achieve net zero carbon emission by 2070. As per IESA, the Indian EV industry is expected to expand at a CAGR of 36%. The electric vehicle market is estimated to be INR 50,000 crores (US$ 7.09 billion) opportunity in India by 2025. Total charging stations in India increased by 285% YoY in FY22.
• The number of EVs operating in the medium and heavy passenger vehicle category increased from 124 in 2018 to 1,356 as of 6 August 2021. With battery costs declining faster than anticipated, EV economics become favorable. Total charging stations in India increased by 285% YoY in FY22. NITI Aayog aims to achieve EV sales penetration of 70% for all commercial cars, 30% for private cars, 40% for buses, and 80% for two- and three-wheelers by 2030.
• The EV industry in India is likely to create 5 crore jobs by 2030. Investment flow into EV start-ups in 2021 touched an all-time high, increasing nearly 255% to reach INR 3,307 crore (US$ 444 million). In 2021, spending on electrical architecture development, such as battery development, electrification, e-motors, and power electronics, came up to INR 48,215 crores (US$ 6.39 billion).
• The Government of India has launched several schemes to promote faster EV adoption, creation of charging infrastructure, and manufacturing ecosystem. The key schemes/initiatives include:
  
  1. FAME India Scheme : Faster Adoption & Manufacturing of (Hybrid &) Electric Vehicles (FAME) India was launched in 2015 for promoting growth and early adoption of hybrid and electric vehicles in the country.
  2. Production Linked Scheme for Advanced Chemistry Cell Battery Storage (PLI-ACC) : The Government introduced PLI for Advanced Chemistry Cell Battery Storage (PLI-ACC) in 2021. The scheme is expected to bring down the prices of batteries in the country, which will reduce the cost of EVs as well.
  3. Production Linked Incentive (PLI) Scheme for Automobile & Auto Components : The Government launched the Production Linked Incentive (PLI) Scheme for Automobile & Auto Components in September 2021, which includes promotion of indigenizing manufacturing of Battery Electric Vehicle & Hydrogen Fuel Cell Vehicle Components. The scheme provides incentive on sales to Original Equipment Manufacturers (OEMs).
  4. Battery Swapping Policy : In April 2022, NITI Aayog released a draft battery swapping policy which will be valid until March 31, 2025. The policy will allow drained batteries to be swapped with charged ones at designated charging stations, this making EVs more viable for potential customers, etc.

UTTAR PRADESH SCENARIO

• Uttar Pradesh leads with most electric vehicles in India as the state joins the nation's effort to curb pollution to transition away from fossil fuel-powered vehicles. Uttar Pradesh, the most populous state in the country, accounts for the bulk of EVs registered in India. Uttar Pradesh had a market share of over 14% in 2023 and the state has dominated the three-wheeler segment, with (> 40%) of electric three-wheelers in the country.
• The State has been one of the largest beneficiaries under FAME1&2 schemes of Government of India. With regards to creation of charging infrastructure, Uttar Pradesh has been sanctioned 207 charging stations under FAME II, which are being installed in 9-cities of the State, viz. Noida, Lucknow, Varanasi, Prayagraj, Kanpur, Aligarh, Saharanpur, Bareilly & Jhansi through REIL & EESL. More charging stations are expected along the Expressways in the State. 700 EV public buses in major cities on routes identified by Urban Development Deptt.