India’s Car Sales Drop in August, But Electric Vehicle Schemes Bring Hope
In August, passenger vehicle sales in India fell by 1.8% to 352,921 units compared to the same month last year, according to data from the Society of Indian Automobile Manufacturers (SIAM). The decline is believed to be due to heavy monsoon rains and customers delaying purchases for the festive season. However, sales of three-wheelers and two-wheelers increased by 7.7% and 9.3%, respectively.
Rajesh Menon, Director General of SIAM, expressed optimism for the upcoming festive season, expecting vehicle demand to grow. This growth is anticipated to be supported by the Indian government’s recent announcements of the PM E-Drive and PM-eBus Sewa schemes.
On Wednesday, the Union Cabinet approved the PM E-Drive scheme to promote electric mobility in India, with a budget of Rs 10,900 crore over two years. The scheme includes Rs 3,679 crore in subsidies to incentivize the purchase of various electric vehicles, including e-2Ws, e-3Ws, e-ambulances, and e-trucks. It aims to support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
The Union Cabinet also approved the PM-eBus Sewa scheme, which allocates Rs 3,435.33 crore for the procurement and operation of over 38,000 electric buses by Public Transport Authorities from 2024-25 to 2028-29. This initiative aims to reduce the environmental impact of diesel/CNG buses currently in use.
Doubts Revealed
passenger vehicle -: A passenger vehicle is a car or other vehicle that is used to transport people rather than goods. It includes cars, vans, and SUVs.
units -: Units refer to the number of individual cars sold. So, 352,921 units mean 352,921 cars were sold.
monsoon rains -: Monsoon rains are heavy seasonal rains that occur in India, usually from June to September. They can cause flooding and make it difficult for people to go out and buy cars.
festive season -: The festive season in India includes important holidays like Diwali and Dussehra, when people often buy new things, including cars.
three-wheelers -: Three-wheelers are small vehicles with three wheels, often used as auto-rickshaws or tuk-tuks for short-distance travel.
two-wheelers -: Two-wheelers are vehicles like motorcycles and scooters that have two wheels and are commonly used for personal transport.
PM E-Drive -: PM E-Drive is a scheme by the Indian government to promote the use of electric vehicles by providing incentives and support.
PM-eBus Sewa -: PM-eBus Sewa is another government scheme aimed at increasing the use of electric buses in public transport.
incentives -: Incentives are benefits or rewards given to encourage people to do something, like buying electric vehicles.
