Government’s schemes boost domestic electric vehicle manufacturing – Times of India

NEW DELHI: The government‘s initiatives, including the production-linked incentive (PLI) scheme with an approved outlay of Rs 25,938 crore, have boosted the domestic electric vehicle (EV) manufacturing industry.
The Centre has has approved 50 out of the 74 applications received from automakers for the PLI schemes in the EV sector while the remaining 24 are under review.
The PLI scheme offers automakers a government grant of 13-15 per cent of the annual sales value of EVs, helping to increase sales and offset the higher costs of investing in new technologies.
Investments reached Rs 17,896 crore and incremental sales crossed Rs 3,370 crore (up to March 31) according to the approved applicants under the main PLI scheme.
The government has also launched other key initiatives, such as the PLI Advanced Chemistry Cell (ACC) scheme with an approved outlay of Rs 18,100 crore for 50 GWh, the Electric Mobility Promotion Scheme (EMPS) scheme with an outlay of Rs 778 crore, and the SMEC initiative aimed at attracting global EV investments with a minimum commitment of Rs 4,150 crore.
The adoption of electric vehicles (EVs) in India has seen a significant surge, particularly in the two-wheeler and three-wheeler segments, following the government’s decision to extend the Electric Mobility Promotion Scheme (EMPS) subsidy until September 30. A report by BNP Paribas India highlighted that electric two-wheeler volumes crossed the 1,00,000 mark last month while electric three-wheeler volumes reached a new peak of 63,000.
BYD market share in the electric passenger vehicle (EPV) segment increased while MG’s declined, while Tata Motors maintained a relatively stable position. The electric three-wheeler (E3W) segment also witnessed changes, as Mahindra & Mahindra and Bajaj Auto increased their market share. Bajaj Auto also increased its market share in electric two-wheeler segment.
According to recent data provided by the Centre, the number of EVs registered in FY24 increase by 42.06 per cent compared to the previous fiscal year, FY23, indicating a growing trend in EV adoption across the country.