New Delhi, August 25: To bolster the domestic electric vehicle (EV) manufacturing, the government’s production-linked incentive (PLI) scheme with an approved outlay of Rs 25,938 crore, along with some other key initiatives, have brought a significant change for the industry. The Centre has already approved 50 of the 74 applications it received from automakers for the PLI schemes in the EV sector, and remaining 24 applications are under review.

According to approved applicants under the main PLI scheme, investments reached Rs 17,896 crore and incremental sales crossed Rs 3,370 crore (up to March 31). Under the PLI scheme, automakers can receive a government grant of 13-15 per cent of the annual sales value of EVs, which helps increase the company’s sales and offsets the higher costs of investing in new technologies. EV Safety Ratings: Hyundai Motor and Kia Receive Top Ratings in Major Global Car Crash Safety Tests.

The government has repeatedly said it is committed to advancing India's EV ecosystem and fostering local manufacturing. Among other key initiatives of the ministry are 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 is aimed at attracting global EV investments with a minimum commitment of Rs 4,150 crore.

Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, said last week that the government has launched key initiatives such as PLI, FAME, EMPS, and advanced capital goods schemes to accelerate India’s journey towards greater self-reliance. Meanwhile, the electric vehicle (EV) penetration has improved sharply in the two-wheeler and three-wheeler segment in India, as the government extended the Electric Mobility Promotion Scheme (EMPS) subsidy till September 30.

Electric 2W volumes crossed the 1,00,000 mark last month while E3W volumes reached a new peak of 63,000, according to the report by BNP Paribas India. In the E2W, Bajaj Auto gained the most market share while Ola lost the most. In the electric passenger vehicle (EPV) segment, BYD gained market share while MG lost. Ola Electric Rapidly Losing Market Share in India Amid Rising Competition, Market Experts Caution Investors About Its Volatile Stock.

Tata Motors market share was largely unchanged. In the electric three-wheeler (E3W) segment, Mahindra & Mahindra and Bajaj Auto gained market share. The Centre recently informed that the number of EVs registered in FY24 increased significantly by 42.06 per cent as compared to FY23.

(The above story first appeared on LatestLY on Aug 25, 2024 12:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).