For the electric vehicles (EVs) to grow faster in the country, there should be a virtuous cycle and the industry should reach 1,000 vehicles per month in the next few months or else it will be worrisome for the companies.

Speaking on the sidelines of the SIAM annual convention, Pawan Goenka, Managing Director, Mahindra & Mahindra, said he expects EVs to account for 30 per cent of the overall auto market in the country by 2030.

“If we are not reaching 1,000 units a month by fourth quarter this year or first quarter next year, I’ll be worried. That should be the first milestone… 25,000 vehicles a year in 2020, then by 2023-24 we should be around 20,000 a month. If we can reach these milestones, we can think of 30 per cent by 2030,” he told reporters here. He said the company expects the EV segment to stabilise in India over the next five years with vehicle prices coming down due to reduction in battery cost and the FAME scheme, after which the scheme will also not be required. The FAME scheme is a government support to encourage sales and manufacture of EVs.

“I expect another 20-25 per cent reduction from over the next two years. I think we would not require FAME and that according to my estimates will take four years. After this scheme of five years we should not require FAME for electric vehicles,” Goenka said.

MOVE summit today

The second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme is expected to be kicked off on Friday by the Prime Minister Narendra Modi at the MOVE Summit.

The scheme was introduced to incentivise sales and manufacturing of EVS in the country. Under Phase II of the initiative, the government has earmarked a budget of ₹5,500 crore to be used over the next five years and will be used to provide subsidies to all types of e-vehicles.

Goenka added that the FAME scheme is the most important ingredient for the EV market to grow.

comment COMMENT NOW