Government initiatives like the PLI scheme are driving EV manufacturing growth and significantly boosting EV adoption across India.
Measures taken by the Indian government such as the Production-Linked Incentive (PLI) scheme have provided a strong boost to local EV manufacturing. The PLI scheme has received the nod for ₹25,938 crore in outlay out of which 50 out of 74 applications of automakers have been approved and 24 applications are still under consideration. To encourage manufacturers of EVs, the government provides a grant that ranges between 13% and 15% of the annual sales value of these vehicles, which will help them mitigate their higher costs for implementing new technologies while also increasing their sales.
The investments under the main PLI scheme have touched ₹17,896 crore till March 31 and incremental sales have crossed ₹3,370 crore. The government has launched other major measures including the PLI Advanced Chemistry Cell (ACC) with ₹18,100 crores for 50 GWh, the Electric Mobility Promotion Scheme (EMPS) with ₹778 crores and the SMEC initiative targeting global electric vehicle investments with a minimum commitment of ₹4,150 crore.
Increase in the uptake of EVs in India
India is a market that has recently seen huge growth, especially in the usage of Electric Vehicles especially in the two and three wheelers category. Further, the government has extended the EMPS subsidy till September 30 which has again speeded up this process. In a report by BNP Paribas India, sales of electric two-wheelers reached over 1,00,000 units in the prior month while electric three-wheelers sold as many as 63,000 units.
Some changes are also occurring in the market, especially within the scope of the EV sector. This was true, especially in regards to the electric passenger vehicle market share; BYD gained a higher percentage, while MG deteriorated. As for Tata Motors, they were able to stay stable. In the electric three-wheeler segment, the market share of Mahindra & Mahindra and Bajaj Auto has improved & Bajaj Auto empowered its position in the electric two-wheeler segment.
Growing EV Registrations
Current statistics from the Centre reveal that EV registrations for FY24 are 42.06% higher than those for FY23, indicating that the shift towards EV use continues to gain traction in the country.
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