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Mint
4 days ago
- Automotive
- Mint
Government supports all green mobility, says heavy industries minister Kumaraswamy
New Delhi: Union heavy industries and steel minister H.D. Kumaraswamy has weighed in on the automotive industry's concerns about state governments equating hybrid and electric car incentives, stating that the government continues to support all clean fuel for automobiles. He said the government has incentivized hybrid cars under subsidy schemes such as FAME II, and hybrid ambulances under PM E-drive. In addition, under the PLI-Auto scheme, the government supports all kinds of fuels besides EVs, including CNG, LNG and biofuels. "Under the FAME-II Scheme, EV (electric vehicles) and hybrid version of e-4W was allowed for incentivization. Similarly, in case of PM E-drive scheme, a hybrid version of e-ambulances, that is, electric plug-in hybrid & strong hybrid shall be incentivized," said Kumaraswamy in an email interview with Mint. Also read: Ola Electric's founder Bhavish Aggarwal pays ₹20 crore to top up collateral as shares slide "Further, besides EV, the government supports all kind of fuels viz. CNG, LNG, and bio-fuels under the PLI Auto Scheme," he added. FAME, or Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles scheme, ran for two iterations from FY15 to FY19, and from FY20 to FY24. Currently, the PM E-drive scheme has replaced the FAME schemes. Under all these schemes, consumers could purchase electric vehicles at a subsidized price. The government then reimbursed manufacturers the difference. PLI-Auto is a ₹25,938-crore production-linked incentive scheme for automobiles and automotive components, announced in 2021. It provides incentives to automakers to manufacture vehicles that run on green fuel. Mint reported on 29 May that leading electric car makers Tata Motors Ltd, Mahindra and Mahindra Ltd and Hyundai Motor India Ltd are up in arms over the Delhi government's draft paper proposing equal incentives for hybrid cars and electric vehicles. On the issue of supply disruptions of rare earth magnets from China, the minister said the automotive industry has sought help from MHI, and that "MHI and the government of India" are actively working with industry stakeholders to understand the issue and find solutions. Kumaraswamy also said battery makers in the country have faced hurdles in meeting timelines under the production-linked incentive scheme for advanced chemical cells (PLI-ACC) due to unavailability of technology, skilled manpower, and upstream components, besides challenges in importing essential equipment and machinery. He clarified however, that by 2030, India will have indigenous ACC capacity of over 100 gigawatt-hours. Also read: Rahul Jacob: Manufacturing is crying out for a reality check "However, with support and hand holding M/s Ola Cell Technologies Private Limited (OCTPL) has reported successful installation of 1.4 GWh capacity," said the union minister. "Apart from the PLI beneficiary firms more than 10 companies have already started setting up cell manufacturing unit for more than 100 GWh capacity," he added. The problem echoes similar challenges faced by India's PLI scheme for solar modules, as Mint reported on Monday. The ₹18,100-crore PLI-ACC scheme was introduced in May 2021 to incentivize setting up of 50 gigawatt-hours of battery storage capacity. Three companies -- Rajesh Exports Ltd, Ola Electric Mobility Ltd, and Reliance Industries Ltd -- have been awarded 40 gigawatt-hour of storage capacity till date. This means the companies will receive benefits to set up every unit of battery capacity. Indian manufacturers are capitalizing on the heightened demand for cell components like Cathode active materials, Anode active material, aluminium and copper foils, with many companies setting up component manufacturing units in India to achieve higher value addition and strengthen supply chains. The ministry of heavy industries, which is also the nodal ministry for the PLI-Auto scheme, is expecting claims worth about ₹2,000 crore from the industry in FY26. Under the scheme, manufacturers have to claim incentives for the sales of zero-emission vehicles or other eligible components achieved in a fiscal year, in the following year. For instance, benefits for FY25 sales under the PLI-Auto scheme will be claimed and disbursed in FY26. Also read: India bulks up its drugs PLI scheme in renewed pushback against Chinese imports The expectation for FY26 claims come after a disbursal of ₹322 crore in FY25 to four manufacturers. This time, the minister said the government was expecting nine manufacturers to claim incentives under the PLI-Auto scheme. "Disbursal of incentive under PLI Auto is expected to increase over the years as the number of applicants achieving DVA certification increases as applicants are able to achieve localization as per scheme guidelines. Further, the applicants are expected to achieve DVA certification for more number of AAT products and variants. As more number of OEMs are likely to achieve DVA under the scheme in the coming years, the disbursal will rise in coming years," said Kumaraswamy. In FY26, state-run Bharat Heavy Electricals Ltd (BHEL) will aim to increase its revenue by 20-25% and double it's profits on the back of its existing orderbook of Vande Bharat trains, navy gun mounts, transmission lines, coal gasification projects, and boilers, the minister said. "In the current fiscal, BHEL is focused on consolidating project execution before expanding into newer domains," said the minister. 'We want BHEL to focus on delivery discipline first. Diversification into non-power sectors rail transport, defence systems, transmission and coal gasification will continue, and in some years, will contribute significant percentage of revenue." BHEL is also set to become the nodal agency for demand aggregation of electric vehicle charging infrastructure, and will develop an application to facilitate charging services, Mint reported on 21 May. On 2 June, the ministry notified the guidelines for the scheme to promote the manufacturing of electric passenger cars in India (SPMEPCI), which was launched in March 2024. The scheme allows foreign electric carmakers to import completely built-up units of their vehicles at a reduced import duty, in exchange for investing at least ₹4,150 crore towards manufacturing electric cars in India. They will be allowed to import 8,000 cars every year for five years at an import duty of 15%, as opposed to the 70% levy on imports otherwise. But electric carmakers have to achieve localization of 25% in three years, and 50% localization in five years to qualify for benefits under the scheme. Investments also have to be made in plant and machinery, electric vehicle charging systems, or research and development. American electric vehicle maker Tesla Inc. has not shown interest in the scheme yet, Kumaraswamy had said on 2 June in a press conference. But other manufacturers including Mercedes Benz, Hyundai, Kia, and Skoda-Volkswagen had shown interest in the scheme, he said.
Mint
28-05-2025
- Automotive
- Mint
MHI allocates 11,000 e-buses to five of nine cities under PM E-drive scheme
New Delhi: The Centre will give subsidies to Delhi, Gujarat, Karnataka and Telangana to press 10,900 electric buses into service. These buses will hit the streets of Ahmedabad, Bengaluru, Delhi, Hyderabad and Surat, the heavy industries ministry said on Thursday. 'From Bengaluru to Delhi, cities are actively embracing electric buses to make public transport cleaner, smarter, and more efficient," said heavy industries minister H.D. Kumaraswamy, who chaired a meeting with ministry officials on the rollout. The government has allocated 4,500 electric buses to Bengaluru, 2,000 to Hyderabad, 2,800 to Delhi, 1,000 to Ahmedabad, and 600 to Surat under the PM E-drive scheme. 'We are not merely allocating electric buses—we are shaping the future of India's transport system with innovation and environmental consciousness. With close coordination between the Centre and states like Telangana, Karnataka, Delhi, and Gujarat, we are determined to deliver on the PM e-Drive promise," the union minister added. Under the PM e-Drive scheme, the Centre plans to provide subsidies for 14,028 buses with an allocation of about ₹ 4,391 crore, forming nearly 40% of the scheme's outlay. This allocation—to be spent till FY26—is aimed at bolstering intra-city green mobility in nine cities with populations above four million. These are: New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Surat and Pune. Mint reported on 5 May that due to overwhelming demand for electric buses from states, they may have to settle for fewer than what they had asked for. The approximate cost of an electric bus is about ₹ 1 crore, of which the government subsidizes ₹ 20-35 lakh, as per the scheme notification. Buses longer than 6m upto 8m will get a maximum subsidy of ₹ 20 lakh; ones over 8m upto 10m, the subsidy is capped at ₹ 25 lakh; while those above 10m upto 12m will get a maximum incentive of ₹ 35 lakh. After the memorandum of understanding is signed between the state transport utility and the selected bidder, the ministry of heavy industries will provide 20% of the agreed subsidy amount as an advance. This will be followed by the disbursal of another 30% of the subsidy once operations begin, while a quarter will be provided after six months of successful operations. The remaining quarter will be given after 18 successful months of commercial operations. After granting electric buses to these states, a competitive bidding process will be conducted by state-run Convergence Energy Services Ltd for state transport utilities to purchase these buses, as per the scheme guidelines. The government's approval for electric buses in five out of nine cities under PM e-Drive came after a moderate FY25. The number of electric buses sold in the country fell 5.7% on-year to 3,314 in FY25, compared with 3,516 in FY24, the Vahan portal data showed. Mint reported on 16 March 2025 that the adoption of electric buses in FY25 at 4.72% was the lowest since 9.34% in FY22. 'The PM e-Drive initiative is a defining move in India's journey toward sustainable public transport. As cities like Delhi, Bengaluru, and Hyderabad grow their electric bus networks, we're proud to provide dependable, advanced technology tailored to modern urban needs. This progress highlights a strong collective push for cleaner, smarter mobility," said Aanchal Jain, chief executive officer, PMI Electro Mobility, which had an orderbook of 2,845 electric buses in February 2025.
Mint
25-05-2025
- Automotive
- Mint
E-buses under PM E-drive to be used now for intercity, tourist travel
Inter-city routes and tourist trails may open up for electric buses which are now confined to cities under a central scheme, two people familiar with the plans said. The ₹10,900-crore PM E-Drive scheme rolled out in September 2024 to expand city transport may soon be expanded for this purpose, the people said on the condition of anonymity. On Friday, the government allotted 10,900 buses under the scheme, which aims at a total of 14,028 buses. 'The allotment announced on 22 May will first be tendered, followed by demand generation and tendering of more electric buses to remaining cities," one of the two people cited above said. 'Then more buses will be deployed for intercity purposes, and for some tourist destinations, for instance, hilly areas." The plan to permit electric buses for intercity travel and tourism purposes will be implemented after the competitive bidding for all cities is completed, the officials mentioned above said. Also read | Govt rushes to find demand for electric trucks under PM E-Drive after bare FY25 Under the scheme, nine cities with over 40 million people are eligible to receive subsidized e-buses, including New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, Surat and Pune. On 22 May, heavy industries minister H.D. Kumaraswamy said Bengaluru will get 4500 electric buses, Hyderabad 2,000, Delhi 2,800, Ahmedabad 1,000, and Surat 600, in the first phase. Tendering of the first phase of buses allotted on 22 May will begin in 4-6 weeks, the second official said. Competitive bidding for the supply of the first phase of buses allotted on 22 May will begin in 4-6 weeks, the second official said. Incentives for each bus sold Typically, the cost of an electric bus is approximately ₹1 crore. Under the PM E-drive scheme, the Centre is planning to dole out a ₹20-35 lakh incentive for every electric bus sold. The development assumes importance as nearly 40% of the scheme is set aside for the rollout of 14,028 electric buses till FY26. Transport-related emissions in cities and along highways currently account for 10-15% of the pollution in our cities, said Viral Thakker, partner & leader - sustainability & climate, Deloitte South Asia. Also read | ARAI likely to plan division of auto testing agencies allocation 'There are several advantages of using buses for intercity travel - a large and efficient network of buses can replace cars and provide alternative transportation options to passengers. Electric buses are also a good addition to tourism locations as India looks to develop a number of sustainable tourism destinations," said Thakker. Subsuming schemes The PM E-drive scheme, announced in September 2024, subsumed the Electric Mobility Promotion Scheme (EMPS), which ran from April 2024 to September 2024. The EMPS and PM E-drive scheme came after a decade of electric mobility incentivization under two iterations of the FAME scheme. FAME stands for Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles. The PM E-drive scheme, set to run for two years till the end of FY26, marked a change in the focus of incentivisation of electric mobility, as it focused on incentivising public transportation to become electric, along with a focus on sunrise sectors such as electric trucks and ambulances. It also incentivised electric two-wheelers and three-wheelers. The scheme mandates manufacturers to provide electric vehicles to consumers at a lower price. The government then reimburses manufacturers. Also read | More than 6 lakh electric 2, 3-wheelers sold under PM E-Drive scheme since April While electric two- and three-wheelers under the scheme are given direct incentives on purchase, the procedure to incentivize electric buses is little more complex. First, the government gathered demand for electric buses from state governments. After this, it finalized allocation to each city mentioned in the scheme. The next step is to conduct competitive bidding for such buses, where state transport utilities would bid for such buses and secure them at affordable rates.
Mint
21-05-2025
- Automotive
- Mint
BHEL to be nodal agency for EV charging infrastructure deployment, demand aggregation
New Delhi: Bharat Heavy Electricals Ltd (BHEL), a public sector unit under the heavy industries ministry, is being considered to be made the nodal agency for gauging and aggregating demand for electric vehicle (EV) chargers. It will also develop an application for streamlining the EV charging infrastructure, according to a press statement by the heavy industries ministry on Wednesday. The app will allow real-time slot booking, payment integration, charger availability status and progress dashboards for tracking national deployment under the PM E-Drive scheme, the statement said. Under this scheme, the government aims to install 72,000 EV public chargers with an outlay of ₹ 2,000 crore till the end of FY26. These stations will be strategically deployed along 50 national highway corridors, and within high-traffic destinations such as metro cities, toll plazas, railway stations, airports, fuel outlets and state highways. Heavy industries minister H.D. Kumaraswamy on Wednesday consulted representatives of the ministries of petroleum and natural gas (MoPNG) and road transport and highways (MoRTH) to review and accelerate the deployment of EV charging infrastructure in the country, the statement said. Kumaraswamy said, 'Under the visionary leadership of Prime Minister Shri Narendra Modi, India is on the path to becoming a global model for sustainable transport. The PM E-Drive scheme is a transformative initiative aimed at giving our citizens access to clean, affordable, and convenient mobility options. We are not just building infrastructure; we are building the foundation for energy security and green economic growth.' He added that collaborative federalism is integral to India's clean energy missions. 'The clean energy transition cannot succeed in silos. This meeting reflects our commitment to working as one government. Ministries, public sector enterprises, and states are all aligned to deliver results on ground. We are confident that PM E-Drive will catalyse new industries, generate green jobs, and offer seamless electric mobility to every Indian,' he said. As on 1 April, there were 26,367 EV public charging stations in the country, as per data gathered by the Bureau of Energy Efficiency (BEE), stated in a Rajya Sabha disclosure dated 4 April. In the first three months of calendar year 2025, there were 1,165 new EV public charging stations deployed by the government, the disclosure showed. EV charging infrastructure is a crucial element in incentivizing green mobility in the country. A wider network of EV chargers reduced range anxiety among potential buyers. Range anxiety refers to the reluctance of buyers to shift to zero-emission electric vehicles due to the limited range they cover in a single full charge. Mint reported earlier on 1 May that the government was planning to revise the costs of setting up EV public charging stations under the PM E-drive scheme, as the cost of raw material as well as components had fluctuated over the last two years. The government has also aimed to set up EV public charging stations on national highways to incentivize public transportation between cities and allow the introduction of electric trucks in key logistical ecosystems. Under the PM E-Drive scheme, nearly 40% of the total ₹ 10,900 crore outlay was allocated towards incentivising electric buses in public transportation. Also, ₹ 500 crore was allocated towards incentivizing electric trucks. Under the scheme, manufacturers have to sell electric vehicles to buyers at a subsidized price. The government then reimburses the manufacturers. Previous schemes, such as the two iterations of FAME schemes also had a similar operation model. FAME stands for Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles. The two iterations of the FAME schemes ran continuously for a decade from FY15 to FY24.
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Business Standard
06-05-2025
- Automotive
- Business Standard
Electric vehicle sales down 17.6% at 167,455 units in April: Fada
Sales of electric vehicles (EVs) dropped 17.6 per cent month-on-month (m-o-m) to 167,455 units in April, dragged down due to stagnant sales in all segments, barring three wheelers (e3w), according to data from the Federation of Automobile Dealers Association (Fada). However, sales were 44.4 per cent more than the corresponding period last year. While TVS Motor and Ola Electric topped the electric two wheeler (e2w) sales with 39,445 units against 53,912 in March, the total e2w sold last month was 91,791. The e2w sales fell nearly 30 per cent m-o-m, but increased 40 per cent year-on-year (Y-o-Y). Bajaj Auto, Ather Energy, Hero also recorded a double digit decline in their monthly sales. With 55.1 per cent, only Kinetic Green Energy and Power Solutions saw a rise in their m-o-m e2w sales. The decline in e2w sales can be attributed to the government halving subsidy on e2w to ₹5,000 from April 1. The guidelines of PM E-drive scheme, operational till the financial year 2025-26 (FY26), outline that the government will provide a maximum of ₹10,000 subsidy per electric two-wheeler sold in FY25, and a maximum of ₹5,000 per unit in FY26. E2w has been the dominant segment within EV sales because of affordability and ease of use in congested urban areas. However, with diminishing incentives, the industry anticipates that sales growth will largely depend on technological advancements, cost reductions through localised manufacturing, and state-level incentives that may supplement the shrinking central subsidies. However, e2w is not alone, other segments are also set to face changes. E3w, which received incentives up to ₹10,000 per kWh under FAME II, will see this drop to ₹2,500 per kWh by 2026. E3w sales last month rose to 62,531, 5 per cent up from a month ago and 48.7 per cent more than a year ago. Though Mahindra Group sold 11, 264 units compared to 13,352 in March, Bajaj Auto and TVS Motor recorded 4.1 per cent and 63.8 per cent more monthly sales in April. In the case of passenger vehicles (PVs) and commercial vehicles (CVs), a total of 12,233 and 900 units respectively were sold in April, down from 12,356 and 961 units in March, but up from 7,798 and 513 units in April 2024. Tata Motors recorded a single-digit decline in its monthly sales, while MG Motor India, Hyundai Motor India, BYD India and BMW India had a double-digit drop. The EV market is expected to grow at a compound annual growth rate (CAGR) of 43 per cent, reaching 932,000 units by 2030. Of this, 61 per cent of demand is projected to come from electric SUVs. The manufacturers anticipate e2w sales to reach pre-pandemic levels in FY26, due to factors like lower EMIs, increased disposable income, and favourable monsoons. The industry expects continued growth, supported by rising EV sales and improved entry-level demand. However, the passenger vehicle segment faces challenges because of weak demand for entry-level cars, with utility vehicles dominating sales.
