The EV segment in India is continuing to grow with additional government support. In July of this year, the government partially modified the Faster Adoption and Manufacturing of Electric Vehicles (FAME) in India Phase II. It has included an additional demand incentive for electric two-wheelers to ₹15,000 per KWh from an earlier uniform subsidy of ₹10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids except buses.
This decision will increase the subsidy for such vehicles by 50% under the FAME II scheme and be a game-changer in adopting EVs.
Such moves from the government will boost faster adoption of EVs. Furthermore, with this kind of solid support, OEMs will also take a step forward to accelerate the mass adoption of EV.
With the ecosystem development now at a certain level of maturity, customers are now ready to move to electric vehicles. Considering all these encouraging signs, all stakeholders of this segment are adopting aggressive strategy.
EV Station Providers. Hindustan Petroleum Corp (HPCL) plans to build 5,000 EV charging stations in 3 years. The company has 19,000 fuel retail outlets and 85 EV charging stations across the country.
HPCL is one of the early players to bet heavily on EVs. In the last few years, HPCL has piloted battery-swapping facilities and charging stations and partnered with multiple players to prepare itself for a larger rollout of EV charging stations.
The company is planning to leverage its country-wide network of fuel stations, brand loyalty, and experience to maximize the pie in the EV industry. The company is moving ahead with its clustering approach. This will allow it to have a stronger presence in cities or routes that have higher EV potential rather than spread itself thin across the country.
OEMs and Customers. Post achieving success with Nexon EV, Tata Motors has launched a new EV in the sedan segment – Tigor. The company is focusing on customers who are looking for optimal range at an affordable and accessible price. This represents the majority of the market.
Ola Electric, the EV arm of ride-hailing firm’s Ola, sold e-scooters worth over Rs 1,100 crore in just two days. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
