When it comes to the future of EV adoption in Karnataka, the current statistics show a promising future in the state. According to data from the Ministry of Road Transport and Highways (MoRTH), over one lakh EVs were registered in the state in less than 8 months (between Jan 2023 to Sep 2023). As a reference point, 95,000+ EVs, including electric scooters, were registered in the whole of last year. This immense traction for e-mobility and the EV subsidy on offer in Karnataka has put it among the top 3 states in EV adoption along with Maharashtra and Uttar Pradesh.
Current EV Policy of Karnataka
The auto industry saw the first glimpse of exemptions from the Centre back in 2015; its overall aim is to achieve the country’s common carbon-neutral goal. The criteria set for pan-India and Karnataka EV subsidy incentives are calculated based on the capacity of the Li-Ion battery pack. Initially, it was ₹ 10,000/kWh. With growing belief in EVs on a day-to-day basis, that has been tweaked now. Furthermore, there’s a maximum cap of 15% for incentives of the total EV value. This component has remained constant.
Back in 2017, Karnataka was the first state to introduce its own EV policy to transform Bengaluru into India’s EV capital. The initiative has helped the state gain the required traction for this transition. Despite a recent cut in the EV subsidy in Karnataka, there was just a marginal decline in sales. Experts believe it to be only a short-term aberration and might also be due to the price-sensitive and reactive nature of Indian buyers.
However, EV policies are just a part of the bigger picture. Multiple aspects play a role in Karnataka’s massive EV adoption growth such as mushrooming of new manufacturing facilities, improving charging infrastructure as well as awareness of the cheaper maintenance costs. Apart from a higher upfront cost, the long-term ownership of EVs is relatively cheaper.
The Future of EV Adoption in Karnataka
As of April ’23, Karnataka has the third highest number of EV chargers in the country with 753 charging stations, 1419 EV chargers and 1680 charging points. Furthermore, to expand the state’s charging infra, the govt. of Karnataka has proposed a subsidy of 20% (FAME 2) or ₹ 10 lakh (whichever is higher) to individuals willing to set up public charging stations. These will cost between ₹ 30 lakh and ₹ 40 lakh.
Apart from the urban charging infra, the Indian Government is also planning to establish charging stations at Toll plazas in the state and national highways in the jurisdiction of Karnataka. This will ease charging worries in vehicles in isolated areas and also eliminate range anxiety while traveling long distances.
As of June 2023, Karnataka has secured an investment of $3.2 billion which is 8% of pan-India ($28.8 billion) investment for expanding the EV manufacturing ecosystem. Lastly, the auto industry awaits the third phase of FAME with positive expectations. According to sources, the Central Government has prepared the draft for FAME III and is considering an outlay of ₹ 40,000 – 50,000 crore.
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Also Read:
Electric Vehicles FAME II subsidy: All you need to know
