The Indian government is actively pushing its automobile market towards electric vehicles with comprehensive policy decisions for its ‘EV Mission.’ The Government of India (GoI) has allocated a budget worth Rs. 5171.97 billion for 2023-24 to accelerate electric vehicle (EV) adoption and manufacturing. Additionally, the FAME India Scheme Phase II offered a subsidy of Rs. 5790 crore to electric vehicle manufacturers on selling 13,41,459 units, as per data shared by the Press Information Bureau (PIB). The Ministry of Heavy Industries has also allocated Rs. 800 crore as a capital subsidy to three Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas (MoPNG) to set up 7,432 public charging stations for electric vehicles.
Three innovative financial models are fueling India’s EV mission:
Financing for EV-Specific Parts and Components
Financial assistance can be obtained for specific EV parts and components. EV batteries, a major cost factor, account for 60-65% of the entire vehicle price, posing a challenge for OEMs and manufacturers. Financing just the battery makes manufacturing more cost-effective, benefiting OEMs and the government’s sustainable mobility initiative.
Also Read | EV incentive scheme FAME-III to be launched soon with 10,000 crore outlay
EV-Specific Financial Products
While EVs receive special attention, they also need tailored financial solutions. Specific financial products designed exclusively for EVs, such as battery leasing options, warranties covering battery degradation, or insurance plans addressing EV-related concerns, can significantly drive EV adoption among consumers.
Community-Based Funding
Community-based funding pools resources from local communities to support a specific mission. In this case, the community can fund the EV mission. This approach has a dual benefit:
- Investment can be gathered at a massive level.
- Awareness regarding EVs automatically spreads as the community funds the mission.
Numerous such innovative models can facilitate the wider adoption of EVs in the Indian automobile market.
To learn more about this booming market, join the Elets National EV Summit 2024, an initiative by Elets Technomedia with Elets eGovernance, on 3rd July in New Delhi.
Grab your passes now. For more details, visit: https://events.eletsonline.com/evs/
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