Investors remain optimistic about the growths potential of India electrics vehicle EV industry, adding billions of dollar worth of investment to tap into this market despite the fact that the two key state of Maharashtra & Goa have withdrawn incentives to green vehicle consumers, based on multiple EV. startups sponsor & founder.
India is a price sensitive market. Therefore, there may be an impact on sales of electrics two wheelers due to the withdrawal of subsidies. But eventually, the industry will learn to live withouts incentives, and to that extent the long-term EV story remains intact, said Arpit Agarwal, director of Blume Ventures. ElectricPe and Battery Smart.
Last month, following in Goa footstep, Maharashtra removed subsidies on electric scooters and motorcycles, making them more expensive by up to Rs 10,000 per vehicle. Goa removed its incentive policy in July 2022. Maharashtra comprised the highest two wheeler registration in India with nearly 40,000 registration in the first six months of 2022. The state offered a subsidy of Rs 5,000 per kilowatt. hour kWh of battery. capacity, with an upper cap of ₹10,000. Initially, the subsidy was for 100,000 vehicles, but some 64,000 buyers benefited, according to the BikeDekho two-wheeler platform. (Investors)
Sales of electric vehicles in August showed that demand has not been affected by the decisions. According to information from the government vehicle registration portal Vahan, electric two wheeler registrations crossed the 50,000 mark for the second time since March.
With 10,476 electric two wheeler registered in August, Hero Electric topped the chart, with Okinawa & Ampere coming in second and third with 8,554 and 6,396 units, respectively.
Okinawa Autotech, one of the country best selling electric two wheeler makers, doesn’t see any slowdown in demand for its vehicles, founder and managing director Jeetender Sharma said.
While we would have expected state subsidies to continue for customers to speed up EV adoption in India, the reversal should not affect overall sales,” Sharma added.
In addition to states, the Center also offers incentives to purchase electric vehicles under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles FAME II policy. With an outlay of Rs 10,000 crore, the scheme offers a subsidy of Rs 15,000 per kWh on electric bicycles and aims to promote the sale of electric vehicles in the country. The scheme is valid until March 31, 2024.