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Government schemes to propel domestic EV manufacturing
Industry News- Aug 26,24
The adoption of electric vehicles in India has surged, particularly in the two-wheeler and three-wheeler segments, following the government's decision to extend the EMPS subsidy until September 30.
The government's initiatives, including the production-linked incentive (PLI) scheme with an approved outlay of Rs 259.38 billion, have significantly bolstered the domestic electric vehicle (EV) manufacturing industry. Out of 74 applications received from automakers for the PLI scheme in the EV sector, the Centre has approved 50, while the remaining 24 are under review.
The PLI scheme offers automakers a government grant of 13-15% of the annual sales value of EVs, which has helped boost sales and offset the higher costs associated with investing in new technologies. As of March 31, approved applicants under the main PLI scheme reported investments totalling Rs 178.96 billion, with incremental sales surpassing Rs 33.7 billion.
In addition to the PLI scheme, the government has launched several other key initiatives, including the PLI Advanced Chemistry Cell (ACC) scheme with an approved outlay of Rs 181 billion for 50 GWh, the Electric Mobility Promotion Scheme (EMPS) with an outlay of Rs 7.78 billion, and the SMEC initiative, which aims to attract global EV investments with a minimum commitment of Rs 41.5 billion.
The adoption of electric vehicles in India has surged, particularly in the two-wheeler and three-wheeler segments, following the government's decision to extend the EMPS subsidy until September 30. A report by BNP Paribas India noted that electric two-wheeler volumes exceeded 100,000 units last month, while electric three-wheeler volumes hit a new peak of 63,000 units.
In the electric passenger vehicle (EPV) segment, BYD's market share increased, while MG's declined, and Tata Motors maintained a relatively stable position. The electric three-wheeler (E3W) segment also saw shifts, with Mahindra & Mahindra and Bajaj Auto increasing their market shares. Bajaj Auto also expanded its market share in the electric two-wheeler segment.
According to recent government data, EV registrations in FY24 increased by 42.06% compared to FY23, highlighting the growing trend of EV adoption across the country.
(TOI)
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