Electric Vehicle Scheme: In the Interim budget of this year, finance minister has allocated INR 2671.33 crore for FAME III scheme but details of it is likely to be announced by the new government in the main budget in July 2024. It is almost 44% cut from the allocation of FY 2023-24, but Industry expects government will hike this amount in the main budget.
A comparable shift is currently underway with electric vehicles, according to a Bloomberg Green analysis of adoption rates around the world. By the end of last year, 31 countries had surpassed what s become a pivotal EV tipping point: when 5% of new car sales are purely electric. This threshold signals the start of mass adoption, after which technological preferences rapidly flip.
EV Batteries: Indigenization won’t help the country at this stage as the manufacturing scalability is not fully achieved. For India to gain efficiency in terms of scale and the supply chain will take some more time. “We have to go beyond the threshold level to see the benefits of localization. I don t think localization by itself is going to benefit, unless we get to that kind of threshold scale, Vijayanand Samudrala, President, Amara Raja, said.
Electric Two Wheeler Demand: The e2w OEMs have to contend with lower financial support from the government in the next fiscal. They also have to face increasing competition from the petrol counterparts of the companies which have distribution and brand strength. These factors drive the e2w OEMs to launch products more affordable to prospective customers.
Electric Two Wheeler: Six focus areas can help manufacturers differentiate their product on upfront cost, maintenance cost, features and time to market to win consumer demand for E2Ws. The key to success in the E2W market is in striking a balance between cutting-edge technology, affordability, and product features that resonate with consumers.