Department of commerce with Information

technology
A Study on Consumer Perception and
Purchase Intention of Electric Vehicles in
Coimbatore

Submitted by
Balaji S
20121011

UNDER THE GUIDANCE OF

DR.D.Sasikaladevi
Associative professor
Head of the department
ABSTRACT
The primary purpose of this study is to analyse the consumer
perception and purchase intention of electric vehicles in India.
As India is facing environmental problems, the government is
producing positive policies to stimulate the sales of electric
vehicles through which the country can meet the UN climate
goals of reducing greenhouse gas emissions. In addition, India
is one of the largest vehicle markets in the world, and the
electric vehicles market has promising growth potential. This
study adopts a quantitative approach and surveys to explore
the problem statement. The influence of factors affecting the
consumers’ willingness to purchase electric vehicles and the
level of consumer perception about electric vehicles in India,
is empirically tested in this research. It provides insights for
EV manufacturers and the government on the expectations of
the consumers on Electric vehicles in India.
INTRODUCTION
In the global vehicle market, battery electric vehicles (BEVs) have
been considered as new alternatives to gasoline-based vehicles,
leading to an increase in BEV sales in many countries. From 2005 to
2020, global sales of new BEVs increased from 1,890 to 2.1 million
vehicles globally in 2019 (Virta Global, [WR 6] 2021). In line with
this global trend, BEV sales in India have also increased enormously.
Since 2010, when BEVs were first introduced with 600 vehicles, the
sales of new BEVs increased to approximately 1.56 lakhs vehicles in
2019. However, the market share for BEVs in India was 0.7% in
2019, revealing that BEVs have not yet effectively penetrated the
Indian vehicle market, unlike BEVs’ market penetration in other
countries. Compared to conventional gasoline vehicles, BEVs
produce zero emissions and reduced noise while driving, and require
smaller operating costs. Despite their higher vehicle price, shorter
driving range, and longer charging time, BEVs show great potential
as new alternatives for transportation.

Present-day environmental concerns are pushing the manufacturing

and sales of Electric vehicles. It is a push factor for the country to
achieve the Paris climate agreement (UNFCC [WR 7]). The year 2018
has revolutionized the Indian manufacturer’s conception of Electric
vehicles as the best alternatives to fuel cars. The mixture of Indian
skilled and semiskilled technological base, a platform of large
customer base, and relatively cheaper production and labour cost, has
fascinated almost all global electric vehicle manufacturers and
component suppliers, to start operations from India — and the result
would give thrust to infrastructural development. Accordingly,
analyzing the factors that influence consumers' intention to adopt
BEVs becomes necessary to create well-organised policies that will
encourage BEV sales.

There is a need to study the factors controlling the consumer

acceptance of these vehicles. Various factors that influence the
purchase decision of car buyers are situations like regulatory
environment, personal current psychological factors, like attitude,
perception, the cost to be bared, social acceptance, and trust levels.
Although some factual studies of the consumer acceptance of hybrid
vehicles have been conducted, there is little research that considers
the perception and buying intention of full-electric vehicles. From an
environmental perspective, climatic change, increase in high CO2
emissions, and depletion of Fossil reserves, the roll-out of the electric
vehicle can be perceived as a safety measure and future security .

Problem Statement
The transport sector is the biggest consumer of oil in India. Since
India imports, more than three fourth of its oil request, the oil imports
have genuine consequences for national vitality security. Because of
high oil dependency transport part likewise represents about 10% of
CO2 outflows and is a significant hotspot for air poisons. The study
investigates the impact of various co-advantages of EVs as CO2
outflows decrease air contamination, social acceptance, and the trust
of consumers over the technology and the present infrastructure
influence the purchase intention of consumers. Other than the co-
benefits, EVs can have co-expenses and dangers, for example, from
the vast scale interest for batteries. This paper aims to scrutinize the
importance of e-vehicles in the minds of Consumers in maintaining
sustainability in the environment.

Scope of the Study

The study focuses on the consumer perception and purchase intention
of electric vehicles in India. Many studies and researches happened to
analyze the technology, benefits, environmental impact, and social
acceptance related to evehicle. Here, the study conducted by
considering those works of literature and the inferences from a sample
survey from the individuals owning vehicles, to address the issue of
lack of knowledge with the public regarding EVs, Further this study
throws light upon the expectation about these vehicles in the minds of
the buyers. To suppress the problem of Air pollution and
environmental Hazards to the maximum extent while using EV.

Need and Significance of the Study

The need for the study is to understand the consumer perception and
the purchase intention of e-vehicles in India. The significance of the
study is that EVs can cause remarkable impacts on the environment,
the country's economy, power system, and other related sectors. There
are possibilities of enormous environmental benefits as well, as EVs
can extensively reduce the greenhouse gas emission from the
transportation sector. However, there are some major obstacles for
EVs to overcome before replacing conventional internal combustion
engine vehicles. This study is focused on reviewing all the useful data
available on factors that influence the consumers, technology,
charging techniques, impacts, trends, and possible directions of future
developments. Its objective is to provide an overall picture of the
current consumer trend and expectation on EV technology and ways
of future development to assist in future researches in this sector

Electric vehicle
Electric vehicles came into existence in the mid of 19th century, when
electric power was one of the preferred modes for motor vehicle
propulsion, providing a level of comfort and ease of operation that
could not be attained by the fuel cars of the time. The internal
combustion engine (ICE) is the presiding propulsion method for
motor vehicles but electric power persists commonplace in other
vehicle types, such as trains and smaller vehicles of all types.

EVs have to rely completely on the energy stored in their battery

packs; therefore the driving range of such vehicles depends directly
on the battery capacity. The ranges of the battery here are depending
on the vehicle configurations, driving condition and style, road
conditions, climate, battery type, and age. Once exhausted, charging
the battery pack takes quite a long time compared to refuelling a
conventional ICE vehicle. Charging time depends on the operating
power level, charger configuration, and infrastructure. The advantages
of EVs are their simple construction, operation, and convenience.
These do not create any noise, do not produce any greenhouse gas
(GHG), and therefore beneficial to the environment.

The potentials of electric vehicles have been studied in many research

from a technical (Werther [1], Frischknecht [2], labeye [3] economic
(Kley et al. [4]), environmental (Sourkounis et al. [5], consumer
attitude (Roger Bennett [6]) and purchase intention (Kenan
Degirmenci [7]) point of view. The researchers also manifested that
there is a substantial struggle for electric vehicles to create
appropriate markets, at least public Perception and Acceptance of
Electric Vehicles in India. There is a changing trend from acceptance
of fuel cars to EV requires an enormous propagation and trustbuilding
on the electric vehicle segment. Still, however, there is strong
negativity in acceptance of EV (Hoffmann [8]).

Electric vehicle industry

The use of electric vehicles was in existence before 1918 but it
virtually fades away with the development of gasoline-powered
internal combustion engine vehicles. These fuel-led cars put the
demand for electric vehicle manufacturing on to a sleep mode. But the
year 2017 has again revived the demand, with the concept of making
EV for longer distance drives too and upliftment in a vehicle
maintenance support system by the Government. Technology
perception and adoptions have two features first is the attribute of
technology and the second is the adopter. In management outlook, it
can be explained through “innovation diffusion theory (IDT) (Rogers,
1962) and following extensions such as the TOE (Technology
organization environmental) framework, Tornatzky, and Fleischer,
1990). These are associated with the adoption of new technology
based on usefulness (performance expectancy), ease of use (effort
expectancy) Social influence, and facilitating conditions (Venkatesh
and Davis [9]; Venkatesh et al. [10])”. These parameters also play a
very crucial role in the adoption of Electric Vehicles.

The commercial vehicle segment is expected to be the fastest-growing

market in the EV industry. India and China are the major contributors
to the growth of the electric commercial segment particularly due to
the increasing adoption of electric buses. Many countries are expected
to replace their present fuel-based bus fleet with electric buses. The
continuing trend of replacing the fossil fuel-based public transport
fleet with electric buses will drive the growth of electric commercial
vehicles. Additionally, the evolution of e-commerce, logistics, and
shared mobility has driven the growth of electric commercial vehicles
during the forecast period.

Presently the electric vehicle market is controlled by globally

established players such as Tesla (US), BYD (China), BMW
(Germany), Volkswagen (Germany), and Nissan (Japan). These
companies are mainly focused on developing new products, adopt
expansion strategies, and undertake collaborations, partnerships, and
mergers & acquisitions to gain traction in this high-growth electric
vehicle market. The Asia Pacific market is expected to spot the fastest
growth, followed by Europe and North America. Some country's
automotive industry inclined toward innovation, technology, and the
development of advanced electric vehicles in the countries such as
China, Japan, and South Korea .

Awareness about the EV for consumers

As a relatively new technology that has only begun to become a
mainstream product, it is important to understand the levels of
awareness consumers have towards HEVs and PEVs, and more
importantly what aspects affect consumer decisions. To understand
and gain some insight into green marketing, the research study from
Lan et al. [11] drive directly on HEV and PEV awareness.

Taking a microeconomic approach Zhang et al. [12] analyzed

consumer awareness towards EVs and examined the factors that affect
consumers’ choices in China. The study uses survey data collected
from 299 respondents in the region of Nanjing China. Zhang et al.
(2011) utilize three binary regression models to determine the factors
that contribute to the acceptance of EVs, purchase time frame, and
purchase price. Additional factors that influence purchasing and price
acceptance are academic degree, age, annual income, the number of
family members, maintenance cost, and the opinion of peers. The
findings from this study essentially set separately the criteria for
consumers in China and what motivates their purchasing behaviour of
EVs.
Many studies and finding suggest that a high level of environmental
awareness exerts a positive effect on the use of more environmentally
friendly transport modes (Kumagai and Managi [13]; Xu et al., 2020;
Zhou et al. [14]). Many studies have found that there is a general lack
of knowledge and awareness about electric vehicles among
consumers. For example, less than 50% of U.S. consumers can name
a specific plug-in electric vehicle make and model (Singer [15]), and
less than 35% of California consumers are aware of incentives and
subsidies available for the purchase of electric vehicles (Kurani [16]
& Tal, 2014). In a survey that happened within U.S. cities (Krause
[17]), about two-thirds of the respondents had a wrong understanding
of the basic characteristics of plug-in electric vehicles, and about 95%
of them were not aware of available incentives. An IBM consumer
survey (Gyimesi & Viswanathan [18], 2011) closely found that 45%
of the surveyed drivers had little to no understanding of electric
vehicles. Consumers who have exposure to electric vehicles are more
aware of the usefulness more highly and consider them as a choice for
future purchases (Kurani et al., 2016; Larson, 2014; Gyimesi &
Viswanathan, 2011).

Environmental impact of electric vehicle

Electric vehicles have the potential for notable contributions towards
achieving the UN’s climate protection goals in the transport sector.
Although, it is still unknown what will be the environmental impacts
of the large-scale introduction of electric vehicles. Many countries
have taken this primary goal and responsibility towards the
environment and sustainable development. This project has developed
scenarios for the increased dissemination of electric vehicles in the
market until 2050 and formulated policy recommendations from these
findings.

When an electric vehicle is running on electricity, it emits no tailpipe

emissions. EVs are a lot more eco-friendly than conventional
gasoline-powered vehicles on the market today when the assessment
is based on that factor alone. However, when evaluating the eco-
friendliness of an electric vehicle, then need to consider the “well-to-
wheel" emissions. This is a comprehensive term that considers
greenhouse gas and air pollutants that are emitted during the act to
produce and distribute the energy to power the car. Electricity
production leads to a varying amount of emissions depending on the
resource. While “being green” in the act of driving the electric vehicle
is a start, if the supreme goal in purchasing an electric vehicle is to
reduce greenhouse gas and pollutants emissions, then should prioritize
using zero-emissions electricity wherever possible. Rezvani et al. [19]
identify that consumers with a higher perception regarding the
environmental impacts of the EVs have a higher choice probability
for EVs. Natural gas provides the majority of electricity, followed
closely by coal. It is often considered to be the “cleanest” fossil fuel
because it emits 50 to 60 %less carbon dioxide than coal. Coal is the
main source for around 65 %of carbon dioxide emissions by the
electric power sector. If the primary motive in purchasing an electric
vehicle is to be green, they should consider powering the vehicle with
a renewable energy source that can generate at your home (such as
solar, wind, or geothermal energy).

Consumer acceptance on EV technology

The distinction of environmental entrepreneurship is the focus on
acting in the economic and ecological needs of society, thereby
emphasizing a ‘double bottom line’ of fusing sustainable objectives
and profit-driven models (Belz & Binder [20]). More recently,
technological innovation has been capitalized upon to improve the
natural environment (Walsh [21]). In this space, stakeholders act
under the pretence that successful market potential to support and
foster innovation requires knowledge and sophistication for
consumers to adequately recognize the value proposition of the
explored product or service. User perception and market acceptance
are therefore interrelated items that can dictate the direction of future
policy and action. A renewable energy technology (RET)
commercialization environment framework highlights market-pull
(the eco-sophistication of the market) and technology-push (demand
for renewable energy technology products) forces to determine more
appropriate choice commercialization strategies based on the nature
of the market.

The literature surrounding innovation implies that individuals who

embody certain descriptive characteristics will adopt innovations
before their peers. Such characteristics include the perception of the
individual adopters, the communication channels, time scale, and
social systems of influence (Rogers, 2003). Rogers’ modelled the
diffusion of innovation theory which suggests that members of a
given society will fall into one of five predetermined adopter groups
based on their willingness to accept a new technology. Rogers’ (2003)
findings suggest that of the five adopter groups, distinct marketing
tactics are necessary to captivate and persuade potential consumers to
adopt an innovative product or service. The degree of support
generated as a result of the initial ‘innovators’ and ‘early adopters’
dictates a predictive pathway to understanding the rate at which
adoption amongst the ‘early majority, ‘late majority, and ‘laggard’
groups may occur. With the intention of better understanding EV
marketing modelling, Peters and Dütschke [22] applied preceding
theories on user adoption trends towards innovation to specifically
query for the intention to purchase and use an EV by consumers. For
the study, he adapted the variables from Rogers’ (2003) work on the
diffusion of innovation theory. However, there was a decision to
substitute the ‘complexity’ variable with the ‘ease of use’ for a more
positive specification of the construct. For this research, since the
intent is to maintain a neutral stance on the matter, the variables will
not be interchanged. According to Intention to purchase and use an
electric vehicle model (Peters & Dütschke, 2014), there are six
variables to play a major impact on the Intention to purchase and use
an EV.
Research Methodology

Conceptual model of the study

The structural model describes how the different variables in the
study are related to each other. It generally shows the relationships.

Research design
The study attempts to identify the consumer perception and purchase
intention of electric vehicles in India and also to examines the
possibility of suggestions for improvement and procedures in the
electric vehicle industry. For carrying out this research study, a
descriptive research design has been employed.

Population
The population for this survey would be people above the age of 18
in India. This is because only people above the age of 18 would have
a vehicle and a significant role in purchasing decisions of valuable
possession like a vehicle. It is highly difficult to reach out to the entire
population and even not possible due to the present pandemic COVID
19 situation.

Sample method
The framework used for the survey sample is purposive sampling and
will collect the responses from a sample size of 144 respondents. This
sampling technique is used because of time constraints and to have a
fair spread of data when demography is considered. The sample
includes a proportionate representation of male and female consumers
of different age groups above 18years. These respondents are helping
the study in gathering the data related to the awareness and buying
intention of electric vehicles in India. This process of gathering the
data has been carried out for accomplishing the study objectives.

Method of data collection

The primary data gathering process is carried out with the help of
structured survey questionnaires. The survey questionnaire was
constructed, to gather appropriate information on the consumer
perception, degree of positive attitude towards electric vehicles, and
their buying intention. The questionnaire consists of 10 questions and
all of them are closed-ended, referring to previous researches and
similar studies contributed to the secondary data.

History of electric vehicles in India

The history of electric vehicles in India began in the 19th century,

even before the REVA electric car came into the market. REVA was
the first electric car to make a big splash in the market. Before that,
there were electric three-wheeler, electric buses and a small two-
seater electric car that was launched before REVA but was
discontinued by the companies due to poor sales and too many
technical problems.

In 1993, India’s first electric car got launched

In 1996, India’s first electric three-wheeler got launched

In 2000, India’s first electric bus got launched

India’s first electric vehicle was an electric car named ‘Lovebird’. The
Lovebird was manufactured by Eddy Current Controls, a company
founded by MD Jose and based in Chalakkudy, Kerala.

It was a cute little two-seater car that was popular even among car
enthusiasts of the time. It had a DC electric motor and a four-speed
gearbox. And you will not believe that it had a range of 60km at that
time when electric car was not even a thing. The battery took 6 to 8
hours to fully charge. By the way, there was a limitation: the car could
not climb steep slopes, as the slope limit was 15 degrees.

The car was first introduced at the Delhi Auto Expo, in 1993, after
which the government allowed commercial sales of the Lovebird.
However, they managed to sell only 25 cars, to institutional and
private buyers combined. Moreover, the government stopped the
subsidy of Rs 80,000, which eventually led to the end of the
production of the Lovebird. So this was the end of the Lovebird.
The year 1996 & 2000

In 1996, India’s first electric three-wheeler got launched, developed

by Scooter’s India Pvt Ltd. The three-wheeler was named ‘Vikram
Safa’. About 400 vehicles were manufactured and sold, but since they
were powered by lead-acid batteries, the batteries ran out after every
41,250 kilometres, driving up the cost of ownership. Then in 2000,
the first electric bus was developed by BHEL. It was an 18-seater
electric bus powered by the same lead acid battery. About 200 of
these buses were built and deployed in Delhi, with the support of the
Ministry Non-Conventional Energy Sources. However, the problem
with the bus was the high cost of the battery, short life and poor
consistency.

Finally it was 2001, when RECC launched India’s first successful

electric car which we all know, REVA. The Reva Electric Car
Company (RECC) was founded in 1994 by Chetan Maini (Co-founder
and Vice Chairman of Sun Mobility), as a joint venture between the
Maini Group of Bangalore and Amerigon Electric Vehicle
Technologies (AEVT Inc.) of the USA. The company’s sole aim was
to develop and produce an affordable compact electric car.

RECC joined up with several automotive experts to develop

components for REVA. Curtis Instruments, Inc. of USA developed a
Motor Controller specifically for the car. The car had a power pack
for which Tudor India Limited supplied customized Prestolite
batteries. The Charger for Reva was developed by Modular Power
Systems of USA (a division of TDI Power). Later, RECC started
manufacturing the charger themselves through a technical
collaboration agreement between MPS and the Maini Group.

In 2009, Reva unveiled its upcoming Reva NXR and Reva NXG
models at the Frankfurt Motor Show. During the event, Reva and
General Motors India declared a technical collaboration to develop
affordable electric vehicles for the Indian market. As a result, at the
Auto Expo 2010 in New Delhi, General Motors India announced an
electric version of its hatchback: the e-Spark, for which Reva would
supply the battery technology.

The acquisition of RECC by M&M

On May 26, 2010, India’s largest manufacturer of SUVs and tractors,

Mahindra & Mahindra, acquired a 55.2% majority stake in Reva.
After the acquisition, the company was renamed Mahindra Reva
Electric Vehicles Private Limited. The president of Mahindra’s
automotive division, Pawan Goenka, became the chairman of the new
company. As a result of the change in ownership, General Motors
withdrew from its collaboration with Reva to produce the e-spark.

In 2016, the company was rebranded as Mahindra Electric Mobility

Ltd. With the intention to reflect not just the business line of
producing vehicles, but also developing powertrains and integrated
mobility solutions.
Towards EV mission 2030

Electric car getting charged illustration

Our Prime Minister Shri Narendra Modi has a vision for converting
all vehicles in India to electric by 2030. Under the government’s new
plans, every car sold in India will be electric by 2030.

EV manufacturers have announced a significant increase in

production, large companies are opting for electric vehicles for their
last mile delivery fleets, consumers are slowly adopting and
preferring electric and hybrid variants as evidenced by rising demand,
and state and central governments are taking steps to improve
charging infrastructure, provide subsidies and convert public
transportation to all-EV.

The entire EV ecosystem in India seems to have gained momentum

and is ready to be a notable contender in the global EV race. India is
well on its way to becoming the hub of battery production and an all-
EV environment is definitely on the right track.

Compared to the past, many new players have now entered the
electric vehicle market such as Ola, Simple Energy, Pravaig
Dynamics, Ather Energy, Hyundai, MG, and even Tesla will soon
have a presence in India. Central Government has also extended the
deadline for FAME -II subsidy till March 2024, which was earlier
2022, and as we know states like Maharashtra, Gujarat, Delhi, Goa etc
are also offering subsidies.
All these things will definitely drive the electric vehicle revolution,
but what do you think, will we be EV ready by 2030?

There’s an electric buzz around the north-western districts of Tamil

Nadu. The sizzle is caused by the number of new-age EV companies
such as Ola Electric, Simple Energy and Ather Energy, among others,
which have set up electric vehicle manufacturing plants in and around
the Hosur, Dharmapuri and Krishnagiri (HDK) belt, just across the
Karnataka border from Bengaluru.

A combination of factors has helped the HDK belt zoom: key players
in the investor ecosystem that have backed these companies; a
competent ancillary supplier network; and the proximity to
Bengaluru, which first gave Hosur the impetus as an industrial belt.
These three districts are located within 150 km of Bengaluru, the
headquarters for these new-age EV companies. If the cards are played
right, this belt could emerge as a global player given the fast adoption
of EVs, especially in the two-wheeler segment.

Sanjay Swamy, Managing Partner, Prime Venture Partners, says,

“Amongst destinations near Bengaluru, the Hosur area has historically
been very strong in the two-wheeler and automotive and electronics
sectors, so it’s natural that this would be the first choice since
consistent access to power, land and trained labour would be logical
criteria, in addition to proximity.”

The growth in EV sales is due to government incentives, growing

awareness and spiralling petrol prices. In January 2022, overall high-
speed EV two-wheeler registrations rose to 27,563 units as compared
to 24,725 units in December 2021, a 11 per cent growth month-on-
month and five times the January 2021 volumes. Rising demand has
been matched by the manufacturers also upping capacity. Ather
Energy recently commissioned its second facility in Hosur to increase
its capacity from 120,000 units to 400,000 units. Ola Electric has set
out to build the world’s largest EV facility with an initial annual
capacity of two million units.

Hosur has developed as a major auto cluster with multiple auto

component manufacturers having plants. In turn, TN has a ready-
made EV ecosystem that attracts new players and also enables
existing manufacturers of fossil-fuel vehicles to transition to EV
manufacturing,” explains Praneet Gupta, Partner, Bain & Co India.
Also, TN also has a skilled labour pool, with over 800 engineering
colleges ensuring a steady stream for the workforce.

In 2018, Ather Energy began manufacturing from its facility located

at Whitefield, Bengaluru. At that time, given the early phase of the
company’s design and product development, the key requirement for
the company was to have its manufacturing very close to the product
and engineering teams. Hence, Bengaluru was an obvious choice,
says Ravneet Phokela, Chief Business Officer.
But, as the company entered a high growth phase, one of the key
factors driving choice of location for Ather’s second manufacturing
facility was proximity to suppliers.

“After considering several options, we set up our plant in Hosur.

Apart from proximity to suppliers, the location allowed us to be close
to our HQ, a huge advantage,” elaborates Phokela.

Rich supplier ecosystem

Around 60 per cent of Ather’s supplier base is in and around Hosur.

Other than cells, 99 per cent of Ather’s components are locally
sourced, and that includes the battery pack which the company
manufactures in its Hosur facility.

“We work very closely with our partners in their journey of taking a
component from prototype to mass-production and to that end, having
a partner located in Bengaluru would be an advantage,” says Phokela.

Ather had signed an MoU with the TN government for a 400,000 sq.
ft. manufacturing facility in Hosur and started operation in January
2021. Ather also recently commissioned its second facility at Hosur
that will take the company’s capacity of 400,000 units from the
existing 120,000 units. Apart from the initial investment that Ather
made while setting up the plant in 2021, the company has now
committed to invest ₹650 crore in the next five years to enhance
operational efficiency and capacity.
In December 2020, Ola Electric also signed an MoU with the TN
government for an investment of ₹2,400 crore in setting up its first
factory in the state. To be run entirely by women, Ola Future Factory,
upon completion, is expected to create almost 10,000 jobs and have
an annual capacity of two million units. In September 2021, Ola
Electric raised over $200 million funding with plans to accelerate
development of its other vehicle platforms including electric
motorbike, mass market scooter and its electric car.

While several have gravitated to TN’s western belt, Ultraviolette has

chosen to set up its plant in Electronics City, Bengaluru. Niraj
Rajmohan, Founder and CTO, Ultraviolette, says the location is in
close proximity to the company’s R&D facility so Electronics City
became a natural choice for them.

“The region is equipped with a strong supply-chain ecosystem,

making it easier for us to locally source components necessary for
manufacturing and assembly. This, in turn, would help us in
improving cost and time efficiencies,” he explains.

EV policy benefits

Analysing the policy benefits available to EV companies in various

states, Rajmohan says that in Karnataka the tangible benefits include
road tax exemption and no registration fees for EVs. Beyond these,
the EV policy talks about more long-term focused measures such as
capital subsidy for EV manufacturers and production-linked
subsidies.

“While these are beneficial in the long run, the more competitive
states offer further upfront benefits — for consumers in the form of
financial subsidies for purchase of EVs; and for EV makers in the
form of additional upfront capital and low-interest bearing long-term
debt with repayment via SGST. This is one of the reasons we see
many companies moving out of Bengaluru when it comes to setting
up manufacturing,” he added.

Agreeing to this, Bain & Co’s Gupta said there exists a supportive and
generous state policy for EV manufacturing. “TN has been an early
mover, announcing an EV policy in 2019 with a target investment of
about ₹50,000 crore. The policy offers significant incentives
including full reimbursement of GST paid on the sale of vehicles, 100
per cent exemption on electricity tax and a subsidy on the cost of
land,” said Gupta.

Another player, Simple Energy, has entered the fray and signed an
MoU with the TN Government in December 2021 for an investment
up to ₹2,500 crore for its EV two-wheeler plant in Dharmapuri. Suhas
Rajkumar, CEO, says, “TN’s advanced infrastructure, manufacturing-
centred policies and locational advantages facilitate its manufacturing
ecosystem and easy exports.” Also, as he adds, TN is one of India’s
fastest-growing automobile hubs that keep working on various EV
policies that can further benefit the EV start-up industry. Clearly,
TN’s policies have powered up the EV manufacturing ecosystem.

Increase in registration of electric

vehicles in Coimbatore
The increasing fuel price is pushing the residents of Coimbatore to go
for electric vehicle usage as the number of electric vehicles registered
in the district has increased in three-fold with in a year.

The number of electric two-wheelers registered in the Regional

Transport Offices (RTO) at Coimbatore North, South, West, Central,
Mettupalayam and Pollachi has increased twice. The electric car
registration has seen a three-fold increase.

In the financial year 2020-21, nearly 2,242 electric two-wheelers and

554 electric cars were registered. Meanwhile, in 2021-22, the electric
two-wheeler registration has gone up to 5,044 and electric cars to
1,556.

This is the result of a push-pull effect, as the Union and State

governments are giving a lot of incentives for buying electric
vehicles, and increase in the prices of petrol and diesel, in the recent
times.

Through the Union Government’s Faster Adaptation and

Manufacturing of Electric Vehicles (FAME) scheme, a subsidy of Rs
15,000 per for kWh is given to purchase electric two-wheelers. The
cap on subsidy would be 40 per cent of the cost of the electric two-
wheeler.

On an average, 5 to 10% of the total vehicles registered in the

Regional Transport Office are electric vehicles, said an official from
the Transport Department. Both the Union and State governments
had given exemption of road tax, road safety cess, registration fee
and service tax for electric vehicles.

India Top Electric Vehicle Companies and

Manufacturers:

Ampere Vehicles Private Limited (Greaves Cotton

Limited)

Establishment: 2008
Headquarters: Bengaluru, Karnataka, India
Website: https://amperevehicles.com/

Ampere Vehicles Private Limited designs electric vehicles to power

India through New Age Energy. It offers a wide range of energy-
efficient products and solutions for clean last mile. In 2019, Ampere
Vehicles was acquired by Greaves Cotton Limited. Backed by state-
of-the-art technology and comprehensive EV ecosystem support, the
company has transformed the affordable mobility landscape over the
last 14 years.
Ather Energy Pvt Ltd

Establishment: 2013
Headquarters: Bangalore, Karnataka, India
Website: https://www.atherenergy.com/

Ather Energy Pvt Ltd is a start-up that designs, manufactures, and

sells premium electric two-wheelers for the Indian market. Its product
offerings include the Ather 450X and Ather 450 Plus, Ather Grid
public & private charging infrastructure, and innovative ownership
plans. The company also built India’s first smart and connected
electric scooters, the Ather 450 product line. It is focused on building
a complete ecosystem for electric vehicles in India, powered by
indigenous design and all locally manufactured. It is currently
expanding its footprint across the country and aims to be in over 50
cities in the coming months.

Atul Auto Limited

Establishment: 1986
Headquarters: Rajkot, Gujarat, India
Website: https://atulauto.co.in/

Atul Auto Limited is one of the youngest and fastest-growing three-

wheeler commercial vehicle companies in India. It offers a complete
range of three-wheelers across the fuel range - Diesel, Petrol,
CNG, LPG, and Electric. With 200 primary and 130 secondary
networks, it has an extensive presence across 21 states. The
company’s dealership, sales, service, and spare parts network consists
of more than 600 touch points across the globe.

Bajaj Auto Limited (Bajaj Group)

Establishment: 1945
Headquarters: Pune, Maharashtra, India
Website: https://www.bajajauto.com/

Bajaj Auto Limited is an Indian multinational automotive

manufacturing company. It is India’s No.1 motorcycle exporter and a
leading two and three-wheeler manufacturer in the world. The
company mainly offers motorcycles, sports bikes, scooters, and auto
rickshaws. Its products are sold in over 70 countries globally.

Electrotherm (India) Ltd.

Establishment: 1983
Headquarters: Gujarat, India
Website: https://www.electrotherm.com/

Electrotherm (India) Ltd. is a leading conglomerate mainly engaged

in electrical and electronics engineering. The company’s line of
businesses includes engineering & technologies, steel &
pipes, electric vehicles, renewables, transformers, and transmission
line towers. Its electric vehicles division manufactures battery-
operated two-wheelers and three-wheelers for passenger and cargo
applications. It was the first company to introduce e-bikes in India in
an organized manner under the brand name YObykes.
Hero Electric Vehicles Pvt. Ltd. (Hero Eco Group)

Establishment: 1993
Headquarters: Gurugram, Haryana, India
Website: https://heroelectric.in/

Hero Electric is the leading manufacturer of electric two-wheelers in

India. Its diverse product line-up includes a wide range of electric
bikes, e-cycle, and scooters worldwide. It also offers a wide range of
high-range and high-speed electric two-wheelers produced in its state-
of-the-art manufacturing facility at Ludhiana. Each product
manufactured by the company is closely inspected, rigorously tested
by quality engineers, and put through 46 stringent quality checks
before reaching the customers. The company has a wide network of
exclusive sales and service outlets across the country.

Hyundai Motor India Limited (Hyundai Motor Company)

Establishment: 1996
Headquarters: Gurugram, Haryana, India
Website: https://www.hyundai.com/in/en

Hyundai Motor India Limited (HMIL) is a wholly-owned subsidiary

of Hyundai Motor Company (HMC) and India’s first smart mobility
solutions provider. It is also the number one car exporter since its
inception in India. Its broad product portfolio comprises SUVs,
sedans, hatchback cars, and electric vehicles. The company operates a
fully integrated state-of-the-art manufacturing plant near Chennai
with advanced production, quality, and testing capabilities. It also
owns a modern multi-million-dollar R&D facility in Hyderabad.
Currently, it has 555 dealers and more than 1414 service points in
India and exports to around 85 countries across Africa, the Middle
East, Latin America, Australia, and the Asia Pacific.

JBM Auto Limited (JBM Group)

Establishment: 1983
Headquarters: Gurugram, Haryana, India
Website: https://www.jbmgroup.com/

JBM Auto Limited is a global conglomerate that operates in

automotive, EV charging infrastructure, renewable energy,
environment management, and artificial intelligence. Its buses and
electric vehicles division has redefined public transportation through
its best-in-class, modern, and technologically superior low-emission
and electric buses that have established benchmarks in passenger
comfort, safety, affordability, and innovation. With around 25,000
employees worldwide, the company has a presence in more than ten
countries.

Mahindra Electric Mobility Limited (Mahindra &

Mahindra Ltd)

Establishment: 1994
Headquarters: Bangalore, Karnataka, India
Website: https://www.mahindraelectric.com/
Mahindra Electric Mobility Limited is the pioneer of electric vehicles
and related technologies in India. Its broad product portfolio includes
electric sedans, three-wheelers, passenger and cargo vans, e-
rickshaws, and cars. It also develops EV-related technologies and
mobility solutions to create an ecosystem that encourages the
adoption of EV technology.

MG Motor India Pvt Ltd (SAIC Motor Corporation

Limited)

Establishment: 2017
Headquarters: Gurugram, Haryana, India
Website: http://mgmotor.co.in/

MG Motor India Pvt Ltd is a leading automobile company in India

and a subsidiary of Chinese automotive manufacturer SAIC Motor. It
offers a wide range of luxury SUV cars and electric vehicles in India.

Okinawa Autotech International Pvt Ltd

Establishment: 2015
Headquarters: Gurugram, Haryana, India
Website: https://okinawascooters.com/

Okinawa Autotech Internationall Pvt Ltd is a 100% Indian electric

two-wheeler manufacturing company that aims to create two-wheelers
that can drive our present towards a sustainable future. The company
has entered into a joint venture with TACITA, an Italian electric and
performance motorcycle manufacturer. The new company, born from
this joint venture, will be based in India and begin production in 2023.

Olectra Greentech Ltd.

Establishment: 2000
Headquarters: Hyderabad, Telangana, India
Website: https://olectra.com/

Olectra Greentech Ltd. is a subsidiary of MEIL Group and a leader in

electric bus manufacturing and insulators in India. It is one of India’s
largest manufacturers of composite polymer insulators and offers a
complete solution, including charging infrastructure and maintenance.
After leading in the commercial run of electric buses, the company is
expanding its product line in the e-mobility segment for three-wheeler
electric autos and trucks.

Piaggio Vehicles Pvt. Ltd. (PIAGGIO & C. SPA)

Establishment: 1999
Headquarters: Pune, Maharashtra, India
Website: https://piaggio-cv.co.in/

Piaggio Vehicles Pvt. Ltd. (PVPL) is the pioneer of 3-wheeler goods

transportation in India and a part of Piaggio & C. SpA, one of the
leading motor vehicle manufacturers in the world. The company
transformed the three-wheeler cargo vehicle segment in the country
with its fuel efficiency, rugged performance, and outstanding load-
carrying capability. It provides three-wheeler autos, electric
rickshaws, tempos, and four-wheeler commercial vehicles.

Tata Motors Limited (Tata Group)

Establishment: 1945
Headquarters: Mumbai, Maharashtra, India
Website: https://www.tatamotors.com/

Tata Motors Limited is an Indian multinational automotive

manufacturing company and a part of the Tata Group. It has an
extensive portfolio covering a wide array of cars, sports utility
vehicles, trucks, buses, defense vehicles, and a range of integrated,
smart, and e-mobility solutions. The company also offers leading-
edge powertrains, electric solutions, and connected & autonomous
vehicles. Currently, the company operates R&D centers in the UK,
Italy, India, and South Korea. Tata Motors is present in more than 125
countries, with a worldwide network of over 8,800 touch points.

TVS Motor Company (Sundaram - Clayton Limited)

Establishment: 1979
Headquarters: Chennai, Tamil Nadu, India
Website: https://www.tvsmotor.com/

TVS Motor Company is an Indian multinational motorcycle

manufacturer and one of the largest two-wheeler companies in the
world. It manufactures an extensive range of two-wheelers, including
mopeds, scooters, commuter motorcycles, racing-inspired bikes, three-
wheelers, and electric vehicles. Its subsidiaries in the personal e-
mobility space, Swiss E-Mobility Group (SEMG) and EGO
Movement, have a leading position in the e-bike market in Switzerland.
The company operates four manufacturing plants, three located in India
(Hosur in Tamil Nadu, Mysore in Karnataka, and Nalagarh in Himachal
Pradesh) and one in Indonesia at Karawang. TVS Motors has a
presence in over 80 countries across the globe, including the Middle
East, Africa, SE Asia, the Indian subcontinent, and Latin & Central
America.

VE Commercial Vehicles Limited

Establishment: 2008
Headquarters: Gurugram, Haryana, India
Website: https://www.vecv.in/

VE Commercial Vehicles Limited (VECV) is a joint venture between

the Volvo Group and Eicher Motors Limited. It is a multi-brand,
multi-division company comprising a complete range of Eicher
Trucks and Buses, Volvo Buses, exclusive distribution of Volvo
Trucks in India, engine manufacturing and export hub for Volvo
Group, non-automotive engines, powertrain, and Eicher component
business. It owns and operates nine manufacturing facilities spread
across India, supported by a strong dealership network of over 500
outlets. Currently, the company exports to over 34 countries and is
recognized as an industry leader in commercial vehicles in India and
the developing world.
List of Electric Vehicle Manufacturers in Tamilnadu
 Irrigation Products International Private Limited
 Dharmasai Motors
 Tri Electric Private Limited
 Kalaiavanan Equipment Hiring Agencies
 Agini TVS

Electric vehicle subsidy in India 2022

We have already talked about the but surely the prices of fuel are
prompting people to make the switch in the country. While it seems to
be working for most buyers, owning an EV is generally a costly
affair. You might feel that running on electric power means saving up
on petrol/diesel running costs. But there is a big difference in what
you pay for a regular car and EV right now. Thankfully, the states
have released the importance of EVs, which is why they have doled
out special subsidies for people buying an electric vehicle across
different parts of the country. So, here we are going to look at
incentives state and centre governments are offering to buyers
switching to EV.
Electric scooter and car subsidy in India by the central government

Before we get down to state subsidies on electric vehicles, let’s

quickly take a look at the central government incentives. The union
government under FAME-II aka Faster Adoption and Manufacturing
of Hybrid and Electric vehicles is offering

 A direct incentive of Rs 15,000 per kWh of battery capacity

(maximum 40 percent of the vehicle cost) on electric scooter/
bike
 A direct incentive of Rs 10,000 per kWh of battery capacity
(maximum Rs 1.5 lakh) on four-wheelers or electric cars and
up to Rs 13,000 per e4W (plug-in hybrid, strong hybrid)
capped at 20 percent of vehicle cost.
In addition to them, there are schemes by the Ministry of Finance that
offer a lower rate of GST at 5 percent on all EVs and tax benefits of
up to Rs 1.5 lakh for first-time buyers. Having said that, these EV
subsidies/ incentives are over and above the state incentives and are
applicable throughout India. They only apply to the first 10 lakh
electric two-wheelers and 55,000 electric four-wheelers, priced under
Rs 1.5 lakh and 15 lakh respectively.

State-wise electric scooter/ bike subsidies in India

Most industry reports highlight the demand for electric two-wheelers

being more than four-wheelers. So, it’s obvious that states have
segregated the subsidies based on that. The benefits have been
calculated as per the battery capacity which is measured in kWh. Here
is a detailed look at state-wise subsidies offered on electric scooters
and bikes:

BATTERY
MAX OTHER
STATE CAPACITY
SUBSIDY BENEFITS
COST

REGISTRATION
TAMIL FEE WAIVER
N/A N/A
NADU UNTIL 2024, NO
ROAD TAX

State-wise electric car subsidies in India

It’s not just the electric scooters that are getting subsidies from
various states. Even buying an electric car such as Tata Nexon EV
and Hyundai Kona Electric gets you special benefits. Here is a state-
wise breakup of where you get the best subsidy on your EV purchase.

BATTERY
MAX OTHER
STATE CAPACITY
SUBSIDY BENEFITS
COST

NO ROAD TAX,
TAMIL
N/A N/A REGISTRATION
NADU
FEES
National Incentives:

FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric

vehicles, is currently India’s flagship scheme for promoting electric
mobility. Currently in its 2nd phase of implementation, FAME-II is
being implemented for a period of 3 years, eff. 1st April 2019 with a
budget allocation of 10,000 Cr. The incentives offered in the scheme
are:

Approximate Size of
Total Approximate Incentives
Battery

Two wheelers:
Two wheelers:
Rs 15000/- per kWh upto 40% of the cost of
2 kWh
Vehicles

Three wheelers: Three wheelers:

Rs 10000/- per kWh 5 kWh

Four wheelers: Four wheelers:

Rs 10000/- per kWh 15 kWh

E Buses: E Buses:

Rs 20000/- per kWh 250 kWh

E Trucks:

Rs 20000/- per kWh