Latest news with #FAMEII
Time of India
13 hours ago
- Automotive
- Time of India
EV sales in India projected to grow 40% to 1.38 lakh units in 2025: Report
New Delhi: Passenger electric vehicle (EV) sales in India are expected to grow by around 40 per cent in 2025 to reach 1,38,606 units, up from 99,004 units in 2024, according to estimates released by market research and consulting firm Frost & Sullivan. Battery electric vehicles (BEVs) are expected to continue dominating the Indian EV market in 2025, while plug-in hybrid electric vehicles (PHEVs) are projected to account for only 0.1 per cent of sales. The report indicates that fuel cell electric vehicles (FCEVs) have not yet entered the Indian market and BEVs will continue to lead in the near term. 'SUVs and sub-compact SUVs drive the growth of EV sales in India ,' the report noted. As per 2024 data, Tata Punch, Tata Tiago, Tata Nexon, MG Comet, and MG Windsor were the top five EV models in terms of unit sales. Tata Motors led OEM sales in 2024, followed by JSW MG Motor India, Mahindra & Mahindra, BYD India, and PCA India (Citroen). The forecast for 2030 shows that EV sales could reach close to 7 lakh units under a baseline scenario. The report identifies Tata Motors, Mahindra & Mahindra, and MG Motor as the leading competitors in the space, operating with different business models. 'EV models will have driver-assist features in premium segments in the near term, however, in the long-term autonomous fleets will operate in gated communities,' the report stated. It further noted that original equipment manufacturers (OEMs) will have to be flexible in their strategies depending on market conditions and charging infrastructure. The report highlights that the Indian EV ecosystem has evolved with the support of various government initiatives such as FAME I, FAME II, Production-Linked Incentive (PLI) scheme, PM eBus Sewa, and PM eDrive. The FAME I scheme launched in April 2015 with a budget of ₹795 crore focused on early adoption, followed by FAME II in April 2019 with a budget of ₹11,500 crore to support mass adoption. The PLI scheme introduced in 2021 aims at manufacturing localisation with a ₹44,000 crore outlay. 'Government support is not limited to EV sales but is also focusing on all type of applications such as e2W, e3W, eBuses and charging infrastructure,' the report said. According to the report, India currently has over 25,500 public charging stations hosting about 60,000 connectors. Karnataka, Maharashtra, Delhi, and Tamil Nadu account for the highest number of installed EV chargers. To support future EV penetration, the country will require one charging connector for every five EVs by 2030. On the manufacturing side, the report lists critical challenges such as dependence on imported raw materials for batteries including lithium, nickel and cobalt, limited domestic cell manufacturing capability, and high reliance on battery management systems and power electronics from Chinese, Japanese, and Korean firms. The report also outlines that battery recycling, advanced power electronics, 800V architecture, vehicle-to-grid integration, battery swapping systems, and inductive charging are among the next set of technologies to watch in India's EV transition. The EV market in India is also expected to see the introduction of new technologies such as range extenders and hybrid fuel solutions combining ethanol and battery. The report cites strong indications of the introduction of PHEVs and extended range EVs (eREVs) in the Indian market.
Time of India
21 hours ago
- Automotive
- Time of India
EV sales in India projected to grow 40% to 1.38 lakh units in 2025: Report
New Delhi: Passenger electric vehicle (EV) sales in India are expected to grow by around 40 per cent in 2025 to reach 1,38,606 units, up from 99,004 units in 2024, according to estimates released by market research and consulting firm Frost & Sullivan. Battery electric vehicles (BEVs) are expected to continue dominating the Indian EV market in 2025, while plug-in hybrid electric vehicles (PHEVs) are projected to account for only 0.1 per cent of sales. The report indicates that fuel cell electric vehicles (FCEVs) have not yet entered the Indian market and BEVs will continue to lead in the near term. 'SUVs and sub-compact SUVs drive the growth of EV sales in India ,' the report noted. As per 2024 data, Tata Punch, Tata Tiago, Tata Nexon, MG Comet, and MG Windsor were the top five EV models in terms of unit sales. Tata Motors led OEM sales in 2024, followed by JSW MG Motor India, Mahindra & Mahindra, BYD India, and PCA India (Citroen). The forecast for 2030 shows that EV sales could reach close to 7 lakh units under a baseline scenario. The report identifies Tata Motors, Mahindra & Mahindra, and MG Motor as the leading competitors in the space, operating with different business models. 'EV models will have driver-assist features in premium segments in the near term, however, in the long-term autonomous fleets will operate in gated communities,' the report stated. It further noted that original equipment manufacturers (OEMs) will have to be flexible in their strategies depending on market conditions and charging infrastructure. The report highlights that the Indian EV ecosystem has evolved with the support of various government initiatives such as FAME I, FAME II, Production-Linked Incentive (PLI) scheme, PM eBus Sewa, and PM eDrive. The FAME I scheme launched in April 2015 with a budget of ₹795 crore focused on early adoption, followed by FAME II in April 2019 with a budget of ₹11,500 crore to support mass adoption. The PLI scheme introduced in 2021 aims at manufacturing localisation with a ₹44,000 crore outlay. 'Government support is not limited to EV sales but is also focusing on all type of applications such as e2W, e3W, eBuses and charging infrastructure,' the report said. According to the report, India currently has over 25,500 public charging stations hosting about 60,000 connectors. Karnataka, Maharashtra, Delhi, and Tamil Nadu account for the highest number of installed EV chargers. To support future EV penetration, the country will require one charging connector for every five EVs by 2030. On the manufacturing side, the report lists critical challenges such as dependence on imported raw materials for batteries including lithium, nickel and cobalt, limited domestic cell manufacturing capability, and high reliance on battery management systems and power electronics from Chinese, Japanese, and Korean firms. The report also outlines that battery recycling, advanced power electronics, 800V architecture, vehicle-to-grid integration, battery swapping systems, and inductive charging are among the next set of technologies to watch in India's EV transition. The EV market in India is also expected to see the introduction of new technologies such as range extenders and hybrid fuel solutions combining ethanol and battery. The report cites strong indications of the introduction of PHEVs and extended range EVs (eREVs) in the Indian market.
Scroll.in
2 days ago
- Automotive
- Scroll.in
Where does India's EV policy stand in global green energy push?
Electric vehicles are now mainstream, accounting for one in five cars sold globally in 2023. In the first quarter of 2024, global EV sales rose by 25% year-over-year, sustaining a growth rate similar to 2022. The International Energy Agency estimated that electric cars would represent 45% of new car sales in China, 25% in Europe, and over 11% in the US in 2024. From January-November 2024, China led the global EV market, with 9.7 million of the 15.2 million EVs sold. Vietnam and Thailand have also seen substantial EV adoption, reaching 15% and 10% of sales, respectively, in 2023. Emerging markets like Brazil (3%), Indonesia (2%), and Malaysia (2%) show potential due to favorable policies. However, the discontinuation of purchase incentives poses a potential risk to the industry's growth. India, with a modest 2% market share, has relied on the Production Linked Incentive Scheme to support domestic EV and battery manufacturing. Unlike most countries, India's EV transition is led by two-wheelers – motorbikes and scooters. Here, we examine the role of policy in shaping India's electric mobility landscape while drawing lessons from countries like China, the US, and others. Although significant progress has been made, the effectiveness of these policies in fully developing the EV ecosystem and addressing existing gaps warrants further examination. India's policies India's national level EV framework under the aegis of the National Mission for Electric Mobility promotes the development of sustainable automotive technologies. This includes the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) schemes. FAME I (2015) aimed to promote EV adoption through subsidies for electric two-wheelers, three-wheelers (such as auto-rickshaws), buses and hybrid vehicles, while FAME II (2019) shifted focus toward infrastructure development by incentivising the establishment of charging stations and mandating higher localisation requirements for subsidised EVs. Another cornerstone is the Production Linked Incentive Scheme, which aims to boost domestic manufacturing of Advanced Cell Chemistry batteries and EV components through subsidies, thereby reducing import dependence. FAME I and FAME II were considered successful by the government and observers. FAME III was expected to be launched in 2024 while addressing FAME II's shortcomings. The PLI Scheme, on the other hand, is unlikely to be extended beyond the 14 sectors currently included and is expected to be modified. Complementing these initiatives, the government has introduced measures like reducing Goods and Services Tax on EVs from 12% to 5%, exempting EVs from permit requirements, and allowing electricity to be sold as a service for EV charging. Budget provisions such as additional income tax deductions on loans for EV purchases further incentivise adoption. Charging infrastructure development, such as charging stations at 25 km intervals on highways encouraged by offering tax rebates, is also a priority. State governments have also played a critical role by creating tailored policies that include demand-side incentives, research and development (R&D) support, labour incentives, and infrastructure development. States such as Karnataka, Maharashtra, and Tamil Nadu, which lead in EV registrations, have introduced comprehensive policies to attract investments and foster local EV ecosystems. Policies in other countries The global push toward EV adoption is evident in policies implemented by major economies like the US, China, and the European Union. The US Inflation Reduction Act, China's New Energy Vehicles Act, and the EU's Net-Zero Industry Act reflected a global shift toward clean energy and electric mobility while showcasing varied strategies and implications for international trade and competition. Each region's approach corresponds to its unique priorities, yet common themes include financial incentives, infrastructure development and strategic trade policies. The US has leveraged policies such as Corporate Average Fuel Economy standards and a national subsidy programme to promote EV adoption. The IRA allocated $370 billion toward climate and clean energy investments, emphasising domestic EV production. Protectionist measures, such as raising import tariffs on Chinese EVs to 100% as of May 2024, underscore efforts to bolster the US's competitive position in global EV markets. However, the administration of US President Donald Trump has set out to dismantle the IRA. The Net-Zero Industry Act aims to enhance the competitiveness of its net-zero industrial base, particularly in battery and storage technologies. Complemented by the European Critical Raw Materials Act, the Net-Zero Industry Act secures supply chains and diversifies partnerships to mitigate reliance on non-EU resources. The EU has also imposed tariffs on Chinese EVs, citing concerns over unfair subsidies and competitive practices in 2024. China's New Energy Vehicles policy is integral to its leadership in electrification. Characterised by extensive subsidies, investments in battery technology, and regulatory mandates, it captures significant portions of the lithium-based battery supply chain. China's dominance in EV production aligns with its strategic priorities to upgrade its automotive industry and combat air pollution. China is now the leader in batteries for electric vehicles and solar panels. It has capitalised on expertise in lithium-ion battery manufacturing, gained from producing consumer electronics, to solidify its position in the EV market. Policy support in other countries includes support for the purchase of EVs and the roll-out of charging infrastructure, while others try to disincentivise the use of internal combustion engine cars. Direct support measures include purchase subsidies, import tax exemptions, and purchase and operational tax exemptions for electric vehicles. Other G20 countries, except Saudi Arabia and South Africa, have implemented mechanisms to support EV adoption. For instance, France and Italy employ indirect measures like the 'malus' system, which imposes higher taxes on vehicles with high CO₂ emissions. Policy effectiveness and challenges Can countries like Brazil, India, or South Africa replicate China's green industrial policy? These three emerging economies have structurally different automotive industries, domestic preconditions, policy and enterprise responses, and preliminary industrial development outcomes. In India, national policies like FAME and local initiatives have supported charging infrastructure and facilitated the emergence of domestic EV manufacturers like Tata Motors. Since India has homegrown automobile brands, the level of investment in the EV supply chain is higher than in Brazil and especially South Africa. The Indian EV market is still tiny compared to the Chinese: 250 million units were sold in China instead of 0.6 million in India in 2019. While the Indian initiatives outlined above have spurred growth, critical questions remain about their sufficiency in fully developing the EV ecosystem. While India has established R&D centers to advance EV technologies, its academic output and patenting activities remain low compared to China and the US. The typical lifecycle of a disruptive industry involves innovators, early adopters, and subsequent scaling. In India, the EV sector has reached a critical inflection point, with scaled manufacturing expected within the next few years. Government measures, such as customs duty cuts on lithium-ion batteries and capital goods for EV manufacturing, are poised to accelerate this transition. This year's budget provided customs duty exemptions to 25 critical minerals, and the Critical Minerals Mission has been established, which is likely to help in battery development. India's coal-dependent electricity mix also hampers EVs' environmental benefits. Addressing these challenges will require substantial investment in renewable energy and the decarbonisation of India's power sector. Similarly, enhancing R&D capabilities and expanding affordable charging infrastructure are necessary to sustain momentum. Globally, competition in the EV market has led to geopolitical tensions. The US and EU's tariff hikes on Chinese EVs and China's export restrictions on critical minerals illustrate the intersection of industrial policy with international trade dynamics. Conclusion In the first eleven months of 2024, 70% of global EV and hybrid sales took place in China. At the same time, China's trade surplus was at a record high of nearly $1 trillion. The new US administration's tariffs, imposed on China, among others, as well as on specific sectors like iron, steel, and aluminium, are an attempt to reshape these markets. Earlier, the EU has imposed tariffs on Chinese EVs, citing unfair subsidies and competitive practices. Other concerns regarding Chinese EVs exist in the EU, the US, and elsewhere. Brazil, Turkey, India, and Indonesia have imposed larger barriers on China's exports, fearing their nascent industries might wither against the Chinese onslaught. China, too, retaliated by banning the export of critical minerals and now restricting exports of machinery for electronics, solar panels, and EVs. India's EV policies reflect a sustained effort to transition to green energy, with initiatives like FAME II, PLI schemes, and state-level incentives forming the backbone of its strategy. However, challenges such as a nascent battery industry, inadequate charging infrastructure, and coal-intensive electricity generation must be addressed to realise the full potential of EV adoption. Moreover, Indian consumers are price sensitive, and electric cars are more expensive. Small and Medium Enterprise support will be vital for realising the full potential of the EV transition. Small and Medium Enterprises, which form a significant portion of India's automotive sector, require tailored incentives to strengthen the EV component supply chain. Replicating China's green industrial policies poses challenges for emerging economies like Brazil, India, and South Africa due to structural differences in their automotive industries and policy environments. Brazil has a large auto industry dominated by foreign original equipment manufacturers, serving as South America's assembly hub. South Africa's smaller industry focuses on exports to Europe, relying heavily on imported components with minimal domestic innovation. India has the strongest automotive component sector (primarily ICE) among the three countries, with domestic firms generating 70% of revenue. India's EV transition trajectory also depends on geopolitics, including access to critical minerals, technology, and financing. Ensuring this transition aligns with broader decarbonisation goals will require coordinated efforts across policy, industry, and academia and international cooperation to secure resources and technology. By addressing these challenges, India can position itself as a leader in the global shift toward sustainable mobility. As the global EV landscape evolves, India's industrial policy must balance immediate incentives and long-term sustainability goals. Drawing lessons from China's market strategies, the US's incentive structures, and the EU's regulatory frameworks, India can refine its policies to create a competitive and environmentally sustainable EV ecosystem. Strategic investments in infrastructure, partnerships with global original equipment manufacturers, and fostering local innovation will be crucial in shaping India's electric mobility future. As India continues refining its policies, these lessons can guide effective implementation that supports economic growth and environmental sustainability. (Springer, 2024).
Express Tribune
19-06-2025
- Automotive
- Express Tribune
EVs 30% target by 2030 ambitious but daunting, say automakers
Listen to article Local auto industry has termed the government's target of having at least 30% electric vehicles (EVs) by 2030 both ambitious and daunting for a financially constrained country like Pakistan. The industry also mentions that when India could not do it in 10 years despite significant financial interventions, how can Pakistan realise this in the next five years? Jamil Asghar, who has been associated with the motorcycle industry for around 35 years, said that India introduced FAME I (Faster Adoption and Manufacturing of Electric Vehicles) scheme in 2015 with an initial outlay of INR895 crore (INR8.95 billion), followed it up with FAME II in 2019 with an outlay of INR10,000 crore (INR100 billion). Then after the end of FAME II in March 2024 came Electric Mobility Promotion Scheme from April till September 2024, with INR500 crore (INR5 billion) and more recently the FAME scheme has been replaced with PM-EDRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) with effect from October 2024 with a total outlay of INR10,900 crore (INR109 billion). Despite spending billions of rupees, the results, however, are not that promising so far. In October 2024, the sale of two-wheelers in India was recorded at 2.1 million. Of these, only 80,850 units were electric bikes. This translates into penetration of only 3.7% for E2Ws (electric two-wheelers). During the same period, E4Ws (electric four-wheelers) constituted only 1.5% of total market as per the Federation of Automobile Dealers Association and the Society of Manufacturers of Electric Vehicles in India. In Pakistan, according to Jamil, there is an industry-wide excitement that automakers are flexing their muscles with the introduction of New Energy Vehicles (NEVs) as the industry is going through a transition phase with the induction of new entrants. "Unlike ICE (internal combustion engine) vehicles, where localisation is more than 95% for two-wheelers and around 65% for four-wheelers, the NEVs are typically being imported into Pakistan as completely knocked down (CKD) units at best and being assembled here only," he said, adding that prices of these vehicles run into tens of millions of rupees, rendering them very expensive for an average Pakistani customer. "Moreover, globally, wherever NEV uptake was recorded, it has come as a result of a hefty supply and demand-side incentives and subsidies and it immediately dips when the incentives are removed or suspended," he pointed out. Jamil said that considering exorbitant prices of NEVs and in the absence of any significant incentives from the government, which is already financially strained and resource starved, what possible fraction of masses will opt for these fancy vehicles remains to be seen. He feared that the government will direct and allocate already scarce resources for a fraction of society and to a sector whose contribution to air pollution is still unclear.
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Business Standard
06-06-2025
- Business
- Business Standard
Boson Cell leads India's march towards sustainable energy storage solutions
Boson Cell, which claims to be the first indigenous lithium cell manufacturing company, has officially launched two new variants—high-performance, cost-effective energy cells: 18350 B-30A and 21700 B-50A. This supports the Prime Minister's clarion call towards making India an Atmanirbhar destination for multiple industries, ensuring that the country's journey towards energy self-reliance and sustainable use of renewable energy is no longer a distant reality. Boson Cell is now at the forefront of the country's rapidly evolving lithium ecosystem, which is set to redefine the way India is perceived by the global audience. With India's lithium-ion battery market projected to skyrocket to $9.56 billion by 2030, Boson Cell is expected to become a critical enabler in key industries—especially clean mobility, consumer electronics, renewable energy, and the rapidly expanding drone market. Supported by forward-looking government initiatives such as FAME II, the PLI Scheme, and the Drone Shakti programme, the demand for reliable, affordable, and locally sourced battery technology is at an all-time high. 'Boson is not just another cell manufacturer—it's a symbol of India's technological prowess in powering sustainable solutions to address the requirements of the burgeoning futuristic industry that are banking on renewable energy,' said Guru Punghavan, Chief Executive Officer, Boson Cell. 'We're not only replacing imports but building smarter, cleaner, and more scalable energy solutions that can power the future of every Indian household, enterprise, and innovation. The cells, manufactured in three variants—Economy, Advanced, and Extreme—can aid the multi-dimensional requirements of battery manufacturers as well as individuals with smaller-scale needs. Quality is at the heart of Boson's promise, with each lithium cell undergoing rigorous multi-stage testing to guarantee safety and superior performance. These cells are designed for wide compatibility, powering a diverse range of applications including electric vehicles, drones, solar energy systems, power tools, and more.' Boson Cell's expansion is timed to capitalise on India's drone sector boom, fuelled by applications in agriculture, defence, logistics, and infrastructure. The Indian drone market is expected to reach $13 billion by 2030, creating a surge in demand for lightweight, high-density, and durable lithium storage solutions. With increasing government support for local drone manufacturing and operational adoption across sectors, Boson's high-performance cells are uniquely positioned to become the backbone of this unmanned aerial revolution. Manufactured through a sustainable, eco-conscious process, each cell embodies the company's steadfast commitment to sustainability, safety, and scalability—ensuring products that are both reliable and responsible. Boson offers cells at a lower cost compared to imported alternatives. Alongside affordability, the company provides faster turnaround times, shorter lead times, and lower minimum order quantities (MOQs) for distributors, enhancing operational flexibility and supply chain efficiency. Currently, Boson's products are available across Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh, distributed through electronics retailers, supermarkets, and local kirana stores. Online accessibility is ensured via partnerships with Amazon, Flipkart, and Boson's own direct-to-consumer e-commerce platform. Looking ahead, Boson Cell is targeting a pan-India presence through modern trade and organised retail channels by the end of 2025. The company also plans to deepen its engagement in strategic sectors such as drone technology, electric vehicle manufacturing, and clean energy integration. With its cutting-edge technology, commitment to local manufacturing, and industry-focused approach, Boson Cell is not only powering India today—it is shaping the country's energy future.
