India's E-2W market shows resilience, registers growth amid reduced EV subsidies, ET Auto
India's E-2W market shows resilience, registers growth amid reduced EV subsidies, ET Auto

India’s E-2W market shows resilience, registers growth amid reduced EV subsidies, ET Auto

February 20, 2024
0 Comments

[ad_1]


<p>To further boost the EV ecosystem, the government has also rolled out two Production Linked Incentive (PLI) schemes.</p>
To further boost the EV ecosystem, the government has also rolled out two Production Linked Incentive (PLI) schemes.

New Delhi: The sales of electric two-wheelers (e-2Ws) in India have witnessed an uptick, registering at 734,760 units for the financial year 2023-24 up to February 6, 2024, compared to 728,271 units in the previous financial year 2022-23, despite the reduction of the EV subsidy from 40% to 15% of the ex-factory price under the FAME India Scheme Phase-II, the ministry of heavy industries said.

This adjustment in subsidy, announced following consultations with e-2W Original Equipment Manufacturers (OEMs) on May 16, 2023, and the approval by the Project Implementation and Sanctioning Committee (PISC), aims to reflect the growing penetration of the EV market in India.

“The reduction in subsidy has not deterred the sales of electric two-wheelers, indicating a robust and resilient market,” Minister of state for heavy industries, Krishan Pal Gurjar, said in a written reply in Rajya Sabha.

To further boost the EV ecosystem, the government has also rolled out two Production Linked Incentive (PLI) schemes. The ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage‘ with a budgetary outlay of INR 18,100 crore, aims to amplify ACC battery manufacturing capacity to 50 GWh.

Another scheme focuses on the Automobile and Auto Component Industry with an outlay of INR 25,938 crore to enhance domestic manufacturing of Advanced Automotive Technologies (AAT) products, including EVs and their components.

“These initiatives are part of the government’s broader strategy to encourage the adoption of electric vehicles and support the transition to a greener economy,” added Gurjar, highlighting the government’s commitment to advancing India’s EV manufacturing capabilities and reducing dependency on fossil fuels.

  • Published On Feb 12, 2024 at 09:41 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETAuto App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


[ad_2]

Source link

Add a comment

Your email address will not be published. Required fields are marked *

Award-winning, family owned dealership of new and pre-owned vehicles with several locations across the city. Lowest prices and the best customer service guaranteed.
Copyright © 2024 SearchMyCar. All rights reserved.