Govt offered incentives to boost EV growth in India: Moody’s

New Delhi, Apr 12 (KNN) Government incentives, including those to consumers, local battery manufacturing, state-level subsidies, and cuts in GST rates would help drive EV penetration in India, said Moody's.

Electric Vehicle (EV) penetration in India is currently only around one per cent despite being the fourth-largest car market globally, said Moody's Investors Service in a report.

The country's charging infrastructure, and consumers' readiness to switch to EVs from traditional ICE vehicles, or those traditional engines powered by petrol, diesel, or natural gas will also defined the pace of increase in EV sales and towards the government's target of 30 per cent by 2030.

“We expect various government incentives will drive an increase in EV penetration. These include consumer incentives, production-linked incentives for advanced battery storage to drive local cell manufacturing, goods and services tax (GST) rate cuts, and other state-level subsidies,” Moody's said.

In 2022 to become the third-largest vehicle market India outpaced Japan after China and the USA.

Last month, Union Minister Nitin Gadkari said that if India can use the lithium reserves recently discovered in Jammu and Kashmir, it can become the world's number one automobile manufacturer in the electric vehicle segment.  (KNN Bureau)