The Indian EV sector ended FY2024 on a strong platform, setting record sales across vehicle types. Sales rose by 41% annually, reaching 1.66 million EVs sold.
Under the Electric Mobility Promotion Scheme 2024, significant incentives under the budget of Rs 500 Crore, are offered for electric two-wheelers and three-wheelers, to boost the adoption of green vehicles.
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.
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.
The Electric Mobility Promotion Scheme 2024 aims at increasing the sale of electric two- and three-wheelers. The four-month scheme is valid until July 2024.