Central Schemes Boost Domestic EV Manufacturing and Sales: Industry Players This comes after the government approved around 50 of the 74 applications it received for the production-linked inventive (PLI), under which the manufacturers can get a grant from government of 13 to 15 per cent of the annual sales value of EVs.
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With central government coming up with new incentives and schemes to up-lift the Electric Vehicles (EVs) industry, the EV manufacturers are hopeful that these measures will further boost the sector for the betterment.
As government initiatives and EV subsidies continue to roll out, we're witnessing both direct and indirect benefits, driving a significant boost in market share for EV automakers, Kunal Gupta, CEO and Co-founder, EMotorad said on Tuesday.
This comes after the government approved around 50 of the 74 applications it received for the production-linked inventive (PLI), under which the manufacturers can get a grant from government of 13 to 15 per cent of the annual sales value of EVs.
This will in turn increase the sales of EVs and offset the higher cost incurred by the companies by investing in the new technologies.
"The results speak for themselves—EV adoption has surged by 42 per cent this fiscal year, and this momentum is reflected in our sales growth of 3.8x annually. Approving 50 out of 74 applications for the PLI scheme is a monumental achievement for India's EV industry, solidifying our place on the global manufacturing map," Gupta said.
"We're proud to be at the forefront of the booming electric cycle market, where we've established ourselves as the biggest player in India with a significant market share of more than 60 per cent. Our manufacturing hub has already reaped considerable benefits from these initiatives, and we are not just optimistic, but confident about the future of manufacturing in this rapidly evolving landscape," he added.
According to the media reports, Bajaj Auto has received a nod for all 13 applications for its EV Chetak and three-wheelers.
Meanwhile, Ola Electric secured approval for four of its electric scooter models and now expected to receive an incentive of 13-15 per cent of the sales value.
Ayush Lohia, CEO, Lohia said that The PLI scheme will offer financial incentives to automobile OEMs and component manufacturers, which will help offset the higher costs of investing in new technologies and will narrow the margin gap between internal combustion engine (ICE) vehicles and EVs.
"The government's approval of 50 applications for PLI schemes is a significant step and will give boost to the Indian EV industry. The PLI scheme will offer financial incentives to automobile OEMs and component manufacturers, which will help offset the higher costs of investing in new technologies and will narrow the margin gap between internal combustion engine (ICE) vehicles and EVs. in addition, the scheme is designed to attract investment in the automotive manufacturing sector, which will help increase the production capacity of EVs in India.Overall, the approval of PLI schemes is a positive step towards increasing the adoption of electric vehicles in India and reducing the country's dependence on fossil fuels," Lohia added.
Meanwhile, Amit Raj Singh, Founder and MD, Gemopai said that PLI scheme will boost the country's local manufacturing capacity while further enhancing the production capacity of electric vehicles, making them feasible for consumers. This, paired with lower production costs due to increased production, will make electric vehicles more affordable and competitive in the market.
"This strong R&D focus of the scheme will result in technological advancements in vehicle performance, range, and safety, making EVs more appealing to buyers. Aside from that, localizing key components such as batteries and powertrains will result in a more robust supply chain with fewer imports and shift production to peripheral industries that could be used for battery production and charging infrastructure. This will help to create jobs, boost consumer confidence, and align with India's clean energy goals, ultimately driving sales and positioning India as a potential EV exporting hub," Singh said.
Among other key initiatives of the ministry are PLI Advanced Chemistry Cell (ACC) scheme with an approved outlay of INR 18,100 crore for 50 GWh, the Electric Mobility Promotion Scheme (EMPS) scheme with an outlay of INR 778 crore and the SMEC initiative is aimed at attracting global EV investments with a minimum commitment of INR 4,150 crore.
