Funding Doubled for India’s Electric Vehicle Industry in 2022

Funding for India’s growing electric vehicle (EV) sector doubled last year. Led by government subsidy initiatives such as the FAME II programme, the investment boost drove India’s total EV funding to US$1.66 billion.

The push has seen the Indian EV market move into position as the third-largest EV market in the world. The total funding in the EV segment increased by 117%, from US$766mn in 2021 to $1.66 billion in 2022.

According to Indian publication the Business Standard, beneficial government initiatives like FAME II, a programme to speed up the electrification of public transportation, as well as other elements like growing environmental awareness and rising oil prices, contributed to the sector’s expansion.

The country’s new budget exemption for customs duty on capital goods and machinery for manufacture of EV batteries, and the duty cut on lithium batteries from 21% to 13% is also expected to lower prices and boost investment in the industry.

Meanwhile Swedish car manufacturer Volvo is said to be exploring the option of setting up an electric vehicle manufacturing facility outside China and India is a potential candidate.

Chief executive officer of Volvo Cars Global, Jim Rowan said that the final decision on location is yet to be taken but India as well as Southeast Asian countries are among the top contenders.

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