[bijims]

The Ministry of Heavy Industries has unveiled a new scheme named Electric Mobility Promotion Scheme 2024 with effect from April 2024 to continue subsidies for electric two and three-wheelers.

The scheme comes with a total outlay of Rs 500 crore and is valid for four months from April 1 2024 to July 31 2024.

The Electric Mobility Promotion Scheme targets to support 3.72 lakh electric vehicles, which includes 3.33 lakh two-wheelers and 38,828 three-wheelers. The targeted three-wheelers include 13,590 rickshaws and e-carts, and 25,238 electric three-wheelers in the L5 category.

Electric two-wheelers will get a subsidy of Rs 5,000 per kilowatt-hour (kWh) with a maximum limit of Rs 10,000 per vehicle under the new scheme, and the segment has of total outlay of Rs 333.39 crore.

Rickshaws and carts will get a subsidy of Rs 5,000 per kWh with a limit of Rs 25,000 per vehicle, and the segment’s total outlay is Rs 33.97 crore. The per-kWh subsidy for L5 electric three-wheelers is also set at Rs 5,000 but is capped at Rs 50,000 per vehicle with a total outlay of Rs 126.19 crore.

The government noted that the Electric Mobility Promotion Scheme is a “fund-limited scheme.” The new scheme, however, has no mention of electric buses and four-wheelers. An extension of the coverage under the scheme or a launch of the third phase of FAME is likely when the newly formed government presents the full budget for the financial year 2025 in July.

So, with the maximum subsidy on Electric Two-Wheelers being reduced to Rs.10,000 from Rs.22,500 in the Current FAME-II scheme, which expires on 31st March 2024, Price hikes across the board are expected from April 2024.



https://pib.gov.in/PressReleaseIfram...x?PRID=2014366

[antz.bin]

The subsidy itself is quite generous considering that BYD and CATL have dropped the prices of LFP cells down to $56.47 per kWh

$56.47 = Rs. 4694. So, in a bulk import scenario, they are effectively getting up to 2kWh battery for free for all 2 wheelers and 5kWh/10kWh for free on small/large 3 wheelers. I assume there must be some restrictions regarding fully imported batteries so the full price of the battery should be enough incentive for some to start manufacturing the battery here. They breakeven even if the marginal manufacturing cost in India is 2x.

Coupled with PLI incentives, this should be enough to make commuter E-2-wheelers mainstream. E-3-wheeler penetration will also improve all over the country as metro networks all over the country take shape. Bajaj have a task on their hands to keep their monopoly in the 3-wheeler segment going in the face of incoming competition from Ola.

The only personal transportation market that EVs are yet to crack is the mid/high performance 2-wheeler market. Those recreation devices (AFAI am concerned ) will help keep the ICE legacy alive for the longest.

[aim120]

The 3 wheeler market is using LFP but the 2 wheeler market is mainly using cylindrical NMC batteries. These are priced about $70 to $80 in bulk.

Add 5% import duties and 5% GST.

Also Ola, Ather, Tvs, Vida, Bajaj all use electric motors that are even though made or assembled in India are still made by non Indian companies. So there is a mark up there. I think only Greaves scooter is using their own motor for a few models with Hub motor.

[TusharK]

Rs 500 crore EV Promotion Scheme comes into effect from April 1

The government’s new Electric Mobility Promotion Scheme 2024 (EMPS 2024) has come into effect from April 1, as the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) program ends on March 31, 2024.



The EMPS 2024 scheme was introduced earlier this year, with the aim of accelerating the adoption of EVs in the country. Under the new scheme, the government will provide subsidies for electric 2-wheelers and 3-wheelers.

Under the new scheme, the government will support up to 3.33 lakh electric 2-wheeler buyers with a subsidy of up to Rs 10,000. 41,000 e-rickshaw and e-cart customers will get a subsidy of up to Rs 25,000. The government will also provide financial support of up to Rs 50,000 for large 3-wheelers.

With the EMPS 2024 scheme, the government aims to support 3,72,215 EVs. The budget outlay for the scheme is Rs 500 crore and will be effective until July 31, 2024.

Source: ET

Link to Team-BHP News

[Neo18]

Will this scheme lead to an increase/decrease of 2 wheeler EVs?