Import of Chinese auto components are likely to go up in India as the government pushes for electric vehicles. In the financial year 2018 alone, Chinese exports to India touched $4.3 billion. India is the world’s third-largest automobile market. India imports 10 times more auto components from China than it exports. The ever growing import of auto components from China pose a threat to domestic auto components manufacturers and will increase India’s already huge trade deficit with China in the coming years.
To counter increasing air pollution levels and boost e-mobility, the Delhi government has approved to deploy 1,000 low-floor electric buses in the National capital. Delhi CM Arvind Kejriwal, in a tweet said the national capital became the first Indian city to have such a large number of electric buses. Delhi, one of the most polluted Indian cities, aims to make 25% of all vehicles to electric vehicles by 2023. The central government has also recently allocated Rs 10,000 crore under the second phase of FAME policy.
The Cabinet Committee of Economic Affairs (CCEA) approved Rs 10,000 crore package for the second phase of Faster Adoption & Manufacturing of Electric (and hybrid) vehicles (FAME) scheme. Starting from 1st April 2019, the second package will continue for three years till 31st March, 2022, FM Arun Jaitley said. FAME II will focus on providing incentives for 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 electric four-wheelers and 7,000 e-buses. The incentives will be applicable only for three and four-wheelers plying as commercial vehicles and public transport.
The government is likely to discuss a proposal on Thursday to provide a subsidy of up to Rs 2.5 lakh for 60,000 electric vehicles (EV) that are bought over the next three years. The funds would mostly be used for subsiding electric two and three-wheelers and buses used for public transport. E-rickshaws will also be eligible for the subsidy. The government has doubled the fund allocation for the scheme, Faster Adoption and Manufacturing of (Hybrid & Electric Vehicles) India (FAME), to Rs 10,000 crore. The second phase of the scheme will come into effect from April.