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Best time to invest with government fully supportive of industry, says EV manufacturers

S Ronendra Singh New Delhi | Updated on September 11, 2021

‘Introduction of Fame-II and additional subsidies by the States have helped EV players introduce more innovative products’

As the automobile industry across the globe celebrates ‘World Electric Vehicle (EV) Day’ last week, the Indian manufacturers said this is the best time to expand the market because of the support from the government.

They said the government’s policies and plans are in sync for the first time in many years, which can lead to a long-term growth in the future.

“The biggest change happening right now is that the government is singing in one tune…it never happened earlier. There were many agencies, and they were going in opposite directions. But, in the last six months we are believing now that the government has one objective, and making it happen,” Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV), told BusinessLine.

The government is coming out with various policies that are dynamic like EV policies in different States, Faster Adoption and Manufacturing of Hybrid Electric vehicles (FAME) scheme and production- linked incentive (PLI) for batteries and parts for the EVs, he said.

“Earlier the policies or schemes were just inked and left, but now every three months, the government is reviewing and doing changes/ additions which are closed to the demand of the industry and involving the industry also in those discussions,” Gill said.

Agreed Tarun Mehta, CEO and Co-founder, Ather Energy, and said that introduction of policies like Fame-II and additional subsidies by the State governments have helped EVs go mainstream and encouraged the EV industry introduce more innovative products for consumers.

“Several Indian automakers are now offering high-performance electric two-wheelers and are investing heavily in the development of the EV ecosystem. Consumer awareness has increased remarkably, and the demand is strong right now. The Indian EV industry is finally taking off,” he said.

Rise of e-vehicles

In the next five years, India will see a significant increase in electric vehicles, with EVs accounting for the majority of vehicles sold, he added.

Not only the two-wheeler companies like Hero MotoCorp or TVS Motor or Bajaj are also working on their EVs, there are many companies in the battery manufacturing or components or charging infrastructure also now making investments in this sector. Companies like LML are also re-entering the two-wheeler market with a new electric scooter now.

However, Gill also added that there is a lot of awareness programmes still needed from the government on the adoption of EVs in the country, especially in the B2C segments.

According to the SMEV, the EV industry sold 2,36,802 units, including electric two-wheelers, three-wheelers and four-wheelers in the fiscal year 2020-21, and this year it has registered sales of 26,313 units between January and June.

Published on September 11, 2021

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