Latest news with #PhasedManufacturingProgramme
&w=3840&q=100)
Business Standard
6 hours ago
- Automotive
- Business Standard
PM E-drive subsidy scheme extended for 2 years for certain segments
The Ministry of Heavy Industries (MHI) has extended the PM E-drive scheme—a programme aimed at accelerating electric vehicle (EV) adoption and charging infrastructure—for a period of two years for certain segments, including e-trucks, e-ambulances, e-buses and public charging infrastructure. These categories will continue to receive subsidies under the scheme till 31 March 2028. However, subsidies for electric two-wheelers (e-2Ws), electric rickshaws, electric three-wheelers (e-3Ws) and electric carts will end on 31 March 2026, according to a government notification dated 7 August 2025. 'This is a fund-limited scheme. Total payout under the scheme shall be limited to the scheme outlay of ₹10,900 crore... The terminal date for registered e-2W, registered e-rickshaws and e-carts, and registered e-3W (L5) shall be 31 March 2026,' the notification stated. The government's decision to extend the EV incentive scheme offers much-needed relief to slower-moving segments like e-trucks, e-buses, e-ambulances and public charging infrastructure, said Saket Mehra, Partner (Auto & EV Leader), Grant Thornton Bharat. He noted that public charging stations require considerable time for project implementation, particularly after proposals are received from state governments and ministries. He also highlighted that limited manufacturing capacity and slow progress under the Phased Manufacturing Programme (PMP)—which mandates certain localisation thresholds—have held back the rollout of electric trucks. Electric buses face a different bottleneck. Mehra explained that under the PM E-drive scheme, the deployment of e-buses depends on a Payment Security Mechanism (PSM), which is still under formulation. The extension till March 2028 is necessary to accommodate this mechanism's implementation and the subsequent rollout of buses. As for e-ambulances, he noted that India currently lacks hybrid or electric models in the market, requiring additional time for development and procurement. Launched in October 2024 with an outlay of ₹10,900 crore, the PM E-drive scheme aims to provide subsidies for 2.48 million electric two-wheelers, 3.15 lakh three-wheelers, 5,643 trucks, 14,028 buses and 88,500 charging stations. Saurabh Agarwal, Partner and Automotive Tax Leader, EY India, explained the rationale for the extension. 'The adoption in the case of e-trucks and e-ambulances was very limited. The government wanted to give clarity to this segment that subsidies will continue in the long term. Since localisation and adoption in this segment are expected to progress gradually, the industry was hesitant to invest without a clear timeline. This is why the deadline has now been extended.' The PM E-drive scheme offers demand incentives of approximately ₹3,679 crore to support the purchase of electric two-wheelers (₹1,772 crore), three-wheelers (₹907 crore), ambulances (₹500 crore) and trucks (₹500 crore). Additionally, ₹7,171 crore has been allocated for electric buses (₹4,391 crore), charging infrastructure (₹2,000 crore) and testing facilities (₹780 crore).
Time of India
20 hours ago
- Business
- Time of India
India's electronics exports up 47% to $12.4 billion in Q1 FY26
Academy Empower your mind, elevate your skills India's electronics exports are expected to grow around 30% on-year to breach the $46-50 billion mark by the end of FY26, having grown 47% in the first quarter of this fiscal, an industry association said, adding that mobile phones were the main growth the projection doesn't take into account potential impact of US tariffs, an official said. Nearly half of India's electronics exports—of which smartphones account for over 70%—are to the US, said industry country's total electronics exports grew to $38.6 billion in FY25 from $29.1 billion in FY24, according to data released by India Cellular and Electronics Association (ICEA) on Thursday. ICEA represents the likes of Apple, Xiaomi, Oppo and Vivo in the Q1FY26, total electronics exports surged 47% on-year to $12.4 billion (around Rs 1.09 lakh crore), driven by smartphones, with a bulk going to the US as companies such as Apple scaled up outward shipments to beat imposition of US tariffs. Thus, mobile phone exports jumped 55% on-year to approximately $7.6 non-mobile segment, comprising solar modules, switching and routing gear, charger adapters and parts, and components, also rose 36% on-year in shipments to $4.8 billion in Q1FY26, according to said India now needs a major thrust to scale up non-mobile categories to broaden India's electronics exports to tap into the massive global opportunity.'It is more important than ever to build an indigenous supply chain. We need globally competitive Indian brands and Indian champions across the entire value chain from components and sub-assemblies to final products,' said Pankaj Mohindroo, chairman, ICEA. 'The real challenge begins now.'Mohindroo said other product segments in electronics have also shown significant growth, and solar modules, networking equipment, chargers and components are gaining traction. 'We must now accelerate their expansion. We need IT hardware, wearables, hearables and consumer electronics exports to rise sharply'.ICEA said India's electronics manufacturing sector has undergone a massive transformation over the last 10 electronics production rose from $31 billion in FY15 to $133 billion in FY25, driven by a targeted industrial strategy and supported by well-calibrated policy interventions such as the Phased Manufacturing Programme (PMP), PLI schemes and strong state-industry collaboration.'The real challenge begins now, which is building resilience, deepening value addition and strengthening our supply chain,' Mohindroo said. 'The global opportunity is massive, but it demands staying power, not just momentum.'
Time of India
a day ago
- Business
- Time of India
India's electronics exports surge by 47% on-year to ₹1.09 lakh crore in Q1FY26: ICEA
NEW DELHI: India's electronics exports surged by 47% year-on-year to $12.4 billion (~₹1.09 lakh crore) in Q1FY26, driven by strong exports of mobile phones, according to the latest industry data released by the India Cellular and Electronics Association ( ICEA ) on Thursday. India, in the corresponding quarter last year, had exported electronics worth $8.43 billion, as per the Delhi-based association which represents Xiaomi, Oppo and Vivo, as well as Apple and Corning in the country. The mobile phone segment emerged as the standout segment, with exports skyrocketing by 55% year-on-year to approximately $7.6 billion. The non-mobile segment, comprising solar modules, switching and routing gear, charger adapters and parts, and components, saw a 36% year-on-year growth in shipments to $4.8 billion in Q1FY26, according to ICEA. The association had earlier said that India's mobile phone exports are being supported by the production-linked incentive (PLI) scheme for handset manufacturing, and further driven by premium brands Apple and Samsung . ICEA, however, suggested that a major thrust is now needed to scale up non-mobile categories to broaden India's electronics exports. 'This is a strategic national achievement. Now begins the real climb towards global competitiveness, sustainability, and deeper value addition,' said Pankaj Mohindroo , chairman, ICEA. Mohindroo said other product segments in electronics have also shown significant growth, and solar modules, networking equipment, chargers, and components are gaining traction. 'We must now accelerate their expansion. We need IT hardware, wearables, hearables, and consumer electronics exports to rise sharply,' he said. READ MORE | Apple, Samsung drive India's mobile phone exports to ₹2 lakh crore in FY25: ICEA Rise in total electronics exports, production India's total electronics exports grew from $29.1 billion in FY24 to $38.6 billion in FY25, and are expected to breach the $46-50 billion mark by the end of FY26, the association said. 'It is more important than ever to build an indigenous supply chain. We need globally competitive Indian brands and Indian champions across the entire value chain, from components and sub-assemblies to final products. This is the path to long-term sovereignty in electronics,' Mohindroo stated. ICEA said that India's electronics manufacturing sector has undergone a massive transformation over the last 10 years, with the total production rising from $31 billion in FY15 to $133 billion in FY25, driven by a targeted industrial strategy, and supported by well-calibrated policy interventions such as the Phased Manufacturing Programme (PMP), PLI schemes, and strong state-industry collaboration. 'The real challenge begins now, which is building resilience, deepening value addition, and strengthening our supply chain. We must stay focused, sharpen our competitive edge, and push forward with consistency. The global opportunity is massive, but it demands staying power, not just momentum,' Mohindroo said.
Time of India
14-07-2025
- Automotive
- Time of India
Smaller e-bike cos slip after FAME red flag
Electric two-wheeler makers penalised for violating Faster Adoption and Manufacturing of Electric Vehicles-II ( FAME-II ) subsidy norms have seen a collapse in sales, with several smaller players nearly vanishing from the market. The government's crackdown has consolidated market share among a few players. Gurugram-based Okinawa Autotech saw its annual sales nosedive from 31,618 units in 2023 to 4,855 in 2024. In the first half of 2025, it has managed to sell just 1,422 vehicles, according to data from the government's Vahan portal. Ampere Vehicles , owned by Greaves Electric Mobility, also recorded a drop in volumes. Combined sales reported on Vahan under both Ampere and Greaves fell to 26,963 units in 2025 so far, down from 36,148 units in 2024 and 66,958 in 2023. Other manufacturers such as AMO Mobility and Benling India have almost disappeared from the market, selling just 25 and 95 vehicles, respectively, in 2025. Launched in 2019, FAME-II aimed to promote domestic manufacturing by mandating that a fixed percentage of components be sourced locally to qualify for demand incentives. However, between late 2022 and early 2023, the government began investigating multiple companies after receiving complaints of non-compliance. 'The market has been a bit slow but is likely to improve… We are finding our own ways to sell our vehicles,' said Sushant Kumar, founder of AMO Mobility, without elaborating. Hero Electric , once a market leader, is now undergoing insolvency proceedings. The resolution professional has invited bids for the bankrupt company. Hero had 29,965 vehicle registrations in 2023, which plunged to 2,916 units in 2024 and 382 units so far in 2025. 'This is a case of regulatory action that essentially took the wind out of these companies,' said V G Ramakrishnan, managing partner at Avanteum Advisors LLP. 'They benefited from the subsidies without following the rules and ultimately paid the price. They had a business model but failed to invest in localisation or comply with government directives, yet continued to claim incentives.' The decline in registrations follows the Ministry of Heavy Industries' decision to suspend subsidy disbursals after several electric two-wheeler makers were found violating Phased Manufacturing Programme (PMP) localisation norms under FAME-II. A total of 13 companies came under scrutiny. Six including Hero Electric, Okinawa Autotech, Benling India, AMO Mobility, Greaves Electric Mobility and Revolt Motors were found to have violated the norms. Following detailed audits and vendor invoice checks, these companies were directed to return subsidies, with the total clawback estimated at ₹469 crore. Among these, Revolt, Greaves, and AMO Mobility returned a combined ₹170 crore to the government. Hero Electric, Okinawa Autotech, and Benling India contested the claims and approached the courts. 'The temporary dip in numbers during 2024 was primarily due to a voluntary business pause we undertook while seeking regulatory clarity around the FAME-II subsidy criteria. Like several players in the industry, we faced challenges, which significantly impacted operations across the sector,' said a spokesperson for Greaves Electric Mobility. 'However, following the resolution and payment of dues, we have resumed normal business operations and are witnessing a steady recovery in registrations and market momentum.' Benling India declined to comment on the matter, while Hero Electric's Naveen Munjal, Okinawa, and Revolt Motors and did not respond to queries. In December 2024, the Serious Fraud Investigation Office (SFIO) launched inquiries into Hero Electric, Benling India and Okinawa Autotech for allegedly falsifying documents to show compliance. Raids and document seizures were carried out as part of the probe into the fraudulent availing of subsidies worth ₹297 crore. The loss of subsidies led to sharp price increases across models, denting consumer demand and leading to a collapse in sales at these firms. 'Some companies deliberately ignored the policy, which had commercial consequences,' Ramakrishnan said. 'When the government enforced localisation norms strictly, these firms lost out. But this did not mean the entire market collapsed. In fact, new players entered, and existing compliant players expanded.' While smaller, non-compliant players crumbled, the market share of large, compliant players such as TVS Motor, Bajaj Auto, Ola Electric, and Ather Energy has grown. TVS and Bajaj, leveraging strong supply chains and brand credibility, are now leading the electric two-wheeler segment. Ola Electric, though facing increased regulatory scrutiny and a decline in market share, continues to scale production and remains among the top players. Ather Energy has also benefited from the shake-up, with a steady rise in registrations and continued investments in new models and charging infrastructure. The government, meanwhile, is working on a successor programme, referred to as FAME-III , aimed at promoting electric mobility while ensuring stricter compliance and a stronger focus on domestic manufacturing. The new policy is expected to further support the transition to cleaner mobility and reduce the country's dependence on fossil fuels.
Time of India
14-07-2025
- Automotive
- Time of India
Smaller EV players nearly wiped out as FAME-II crackdown triggers sales collapse
Academy Empower your mind, elevate your skills ETtech Electric two-wheeler makers penalised for violating Faster Adoption and Manufacturing of Electric Vehicles-II ( FAME-II ) subsidy norms have seen a collapse in sales, with several smaller players nearly vanishing from the market. The government's crackdown has consolidated market share among a few Okinawa Autotech saw its annual sales nosedive from 31,618 units in 2023 to 4,855 in 2024. In the first half of 2025, it has managed to sell just 1,422 vehicles, according to data from the government's Vahan portal. Ampere Vehicles , owned by Greaves Electric Mobility , also recorded a drop in volumes. Combined sales reported on Vahan under both Ampere and Greaves fell to 26,963 units in 2025 so far, down from 36,148 units in 2024 and 66,958 in manufacturers such as AMO Mobility and Benling India have almost disappeared from the market, selling just 25 and 95 vehicles, respectively, in 2025. Launched in 2019, FAME-II aimed to promote domestic manufacturing by mandating that a fixed percentage of components be sourced locally to qualify for demand incentives. However, between late 2022 and early 2023, the government began investigating multiple companies after receiving complaints of non-compliance.'The market has been a bit slow but is likely to improve… We are finding our own ways to sell our vehicles,' said Sushant Kumar, founder of AMO Mobility, without elaborating. Hero Electric , once a market leader, is now undergoing insolvency proceedings . The resolution professional has invited bids for the bankrupt company. Hero had 29,965 vehicle registrations in 2023, which plunged to 2,916 units in 2024 and 382 units so far in 2025.'This is a case of regulatory action that essentially took the wind out of these companies,' said VG Ramakrishnan, managing partner at Avanteum Advisors LLP. 'They benefited from the subsidies without following the rules and ultimately paid the price. They had a business model but failed to invest in localisation or comply with government directives, yet continued to claim incentives.'The decline in registrations follows the Ministry of Heavy Industries' decision to suspend subsidy disbursals after several electric two-wheeler makers were found violating Phased Manufacturing Programme (PMP) localisation norms under FAME-II.A total of 13 companies came under scrutiny. Six, including Hero Electric, Okinawa Autotech, Benling India, AMO Mobility, Greaves Electric Mobility and Revolt Motors, were found to have violated the norms. Following detailed audits and vendor invoice checks, these companies were directed to return subsidies , with the total clawback estimated at Rs 469 these, Revolt, Greaves, and AMO Mobility returned a combined Rs 170 crore to the government. Hero Electric, Okinawa Autotech, and Benling India contested the claims and approached the courts.'The temporary dip in numbers during 2024 was primarily due to a voluntary business pause we undertook while seeking regulatory clarity around the FAME-II subsidy criteria. Like several players in the industry, we faced challenges, which significantly impacted operations across the sector,' said a spokesperson for Greaves Electric Mobility. 'However, following the resolution and payment of dues, we have resumed normal business operations and are witnessing a steady recovery in registrations and market momentum.'Benling India declined to comment on the matter, while Hero Electric's Naveen Munjal, Okinawa, and Revolt Motors and did not respond to December 2024, the Serious Fraud Investigation Office (SFIO) launched inquiries into Hero Electric, Benling India and Okinawa Autotech for allegedly falsifying documents to show compliance. Raids and document seizures were carried out as part of the probe into the fraudulent availing of subsidies worth Rs 297 loss of subsidies led to sharp price increases across models, denting consumer demand and leading to a collapse in sales at these firms.'Some companies deliberately ignored the policy, which had commercial consequences,' Ramakrishnan said. 'When the government enforced localisation norms strictly, these firms lost out. But this did not mean the entire market collapsed. In fact, new players entered, and existing compliant players expanded.'While smaller, non-compliant players crumbled, the market share of large, compliant players such as TVS Motor Bajaj Auto , Ola Electric, and Ather Energy has grown. TVS and Bajaj, leveraging strong supply chains and brand credibility, are now leading the electric two-wheeler Electric, though facing increased regulatory scrutiny and a decline in market share, continues to scale production and remains among the top players. Ather Energy has also benefited from the shake-up, with a steady rise in registrations and continued investments in new models and charging government, meanwhile, is working on a successor programme, referred to as FAME-III, aimed at promoting electric mobility while ensuring stricter compliance and a stronger focus on domestic manufacturing. The new policy is expected to further support the transition to cleaner mobility and reduce the country's dependence on fossil fuels.
