The electric vehicle (EV) market for the month of August witnessed a jump of 11 percent growth as EV sales stood at 28,919 units across all categories. This was reported to have been the highest ever monthly sales of Electric Vehicle driven by 92 percent from sales of two and three-wheelers.
In the current fiscal year, more than 80,000 units of Electric Vehicle were sold in India, and the majority of the market was dominated by the three and two-wheelers category. More than 40,000 units were sold in the three-wheeler category and over 38,000 units were sold in two-wheelers, whereas four-wheelers could just make 3,150 sales.
During July 2021, total registered EV sales stood at 26,127 units, while in July 2020, total EV sales were at 7,512.
Before the pandemic outbreak, Finance Minister Nirmala Sitharaman in the 2019 fiscal budget outlined various opportunities for boosting the use of EVs in India. To enhance the affordable purchase of electric vehicles the union government has provided an additional Income Tax deduction of Rs 1.5 lakh on the interest paid on loans to purchase EVs. Furthermore, custom duties on certain parts of E-vehicles are exempted. GST is curbed from 12 to 5 percent. The government has sanctioned a pilot project wherein, 2,636 charging stations in 62 cities across 24 states/UTs will be implanted.