GST on electric vehicles has also been reduced from 12 percent to 5 percent; GST on chargers/ charging stations for electric vehicles has been reduced from 18 percent to 5 percent
Looking to EV manufacturing in the country, the Ministry of Heavy Industries has notified a Phased Manufacturing Programme (PMP). The PMP envisaged a graded duty structure to promote indigenous manufacturing over a period of time.
As per an official statement, it is to promote indigenous manufacturing of Electric Vehicles, its assemblies / sub-assemblies and parts / sub-parts / inputs of the sub-assemblies.
Another PMP for Electric/ Hybrid (xEV) Parts defines the effective date of indigenization of xEV parts to avail incentives under FAME Phase-II.
Since Automobile is a liberalized sector and 100% Foreign Direct Investment (FDI) by automatic route is permitted in this sector, the Ministry of Heavy Industries said that it is not mandated to maintain the data related to the percentage of total electric two wheeler vehicles with a minimum range lesser than 80 kilometres per charge.
GST on electric vehicles has also been reduced from 12 percent to 5 percent; GST on chargers/ charging stations for electric vehicles has been reduced from 18 percent to 5 percent.
Under Phase-II of FAME India Scheme, 2.31 lakhs Electric Vehicles have been supported till 01.02.2022 since 01st April, 2019 by way of Demand Incentive amounting to Rs. 827 Cr. (approximately).
