Asia Pacific Electr
How government policies in Asia Pacific are promoting the use of electric two and three wheelers?
The need to convert to less-polluting modes of transportation from carbon-emitting vehicles has never been greater. The lofty goals for the any country's electric mobility while also upholding global commitments. However, it is local and state governments that are tasked with the implement of policies to enable the change. Readers will find out how the policies promote the adoption of electric two and three-wheelers in Asia Pacific.
A rise in public support through tax reduction and incentives for eco-friendly commuting. These elements encourage market growth. In addition, according to a research report by Astute Analytica, Asia Pacific Electric Two & Three-Wheeler Market increasing at a compound annual growth rate (CAGR) of 14.1% throughout the projection period from 2022 to 2030.
Here are several policies which promote the of electric two and three-wheelers in Asia Pacific regions
Reductions in road tax: Despite the requirement for a road tax exemption in EV regulations, the majority of states have not yet implemented the tax exemption. India has lowered its road tax rate by half for EVs, while they now impose a reduced 4% road tax on electric two and three-wheelers.
Commercial vehicles, which are subject to annual or semi-annual road tax, are anticipated to gain from longer tax exemption periods. India grants road tax exemptions for a specific number of vehicles in each vehicle segment.
Retrofit and scrapping incentives: Incentives for scrapping and retrofitting current vehicles are intended to hasten the fleet's conversion to electric vehicles while removing older, highly polluting ICE vehicles from the road.
Scrapping incentives in vehicles in favor of EVs is effective, with no net increase in the number of vehicles on the road. Purchasing subsidies can be gradually reduced as the cost differential between ICE and EVs narrows while scrapping incentives can rise proportionately.
FAME and FAME II: The Indian government offers incentives to encourage the adoption of electric and hybrid vehicles through the FAME India (Faster Adoption and Production of EV scheme.
Incentives are offered to infrastructure providers and electric vehicle manufacturers to encourage the production of electric vehicles and the construction of an infrastructure for electric transportation.
FAME scheme concentrates on four key areas: technological development, demand generation, pilot programs, and charging infrastructure. These categories cover a range of electric and hybrid vehicle technologies, including mild, strong, plug-in, and battery-electric vehicles.
Phased Manufacturing Programme (PMP): A phased production plan has been created to increase mobility and encourage the development of electric two-three vehicles. Given the existing state of the nation's manufacturing ecosystem, local production of vehicles, their assemblies, sub-assemblies, components, sub-parts, and inputs will be elevated over time through a tiered duty structure. The objective is to significantly boost the nation's capacity building and value addition.
The national scheme on storage and transformative mobility: The scheme's objective is to develop phased manufacturing programs and disruptive mobility plans for batteries, electric vehicle parts, and electric vehicle automobiles. It covers phased production programs for batteries, vehicle parts, and revolutionary mobility drive projects. establishing a Phased Manufacturing Programme (PMP) to localize vehicle manufacture throughout the whole value chain.
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