Registrations for e-2W soar before new subsidy norms lead to price hike

On account of pre-buying before price rise from 1st June, the electric 2-wheeler high-speed scooter registrations in May 2023 surged 148% year-on-year and 57% month-on-month to 1,04,771 units while overall e-2W grew 11%  year-on-year and 21% month-on-month. According to the Economic Times, compared to April 2023, when EV 2W penetration stood at 5.4%, the figure rose to 7% in May. The newspaper further reported that Ola Electric kept the top rank with 28,438 registrations in May 2023, holding a 27.1% market share. TVS Motors came in second with 19.3%, Ather Energy third with 14.6%, Bajaj Auto fourth with 9.5%, and Ampere fifth with 9.2%.

With new lowered subsidy standards set to take effect on June 1, 2023, the majority of EV OEMs anticipate raising prices by between ₹15,000 – ₹30,000 (about 10-15%). According to a statement from TVS Motor Company, depending on the model, the price of the iQube has increased by between ₹17,000 – ₹22,000. Numerous other businesses, including Ather, Ola, and Ampere, have also raised their pricing, but Hero Electric has made it clear that it will not do so.

Auto industry awaits clarity on PLI subsidy launched over a year ago

Auto players in the country are awaiting information on whether they would receive incentive funds for the first year of the ₹25,938 crore production-linked incentive (PLI) scheme, the Economic Times reported. Even though the scheme has been in effect for over a year, the delayed release of the standard operating procedure (SOP) for the scheme on April 27, 2023, which is required for products to be certified, has caused the issue. It’s only after the manufacturers get their products certified for the scheme after calculating the domestic value addition (DVA) as per the SOP,  they will receive the incentive. Businesses are concerned that key changes agreed upon by the industry and government have not been incorporated into the final draft of the SOP. 

Kerala to have special zone for EV industry 

In Kerala, a special economic zone will be established for the electric vehicle (EV) industry. Minister for Law, Industries and Coir for the state, P Rajeeve, stated that the special zone will accommodate enterprises related to battery manufacture, technology development, and other related fields when he opened the annual summit of Electric Vehicle Owners Kerala (EVOK) in Kochi. Initially, there are 30 charging stations included in the first phase and eventually, there will be 100. He added that the government supports the establishment of more fast charging stations in the state by the Kerala State Electricity Board (KSEB) and private businesses. 30 fast charging stations will be installed by EVOK at various locations around Kerala. To ensure that EV owners may easily access the charging stations, a mobile application was also launched during the event. 

Tata Group to build a lithium-ion cell factory in Gujarat

One of the biggest EV makers in the country, the Tata Group signed a deal to build a lithium-ion cell factory in Ahmedabad, Gujarat, with an estimated investment of about ₹130 billion ($1.58 billion). A joint statement on the MOU between Tata’s unit Agratas Energy Storage Solutions and Gujarat govt said that work on the plant could start in less than three years. The plant will be based in Sanand, a municipality in Ahmedabad. Initially, the manufacturing capacity will be 20 Gigawatt hours (GWh), which could be doubled in a second phase of expansion, the statement said.

Delhi highest electricity consumer at EV charging stations 

According to data provided by the Central Electricity Authority (CEA), Delhi NCR accounted for over 55% of the country’s electricity consumption at the electricity vehicle charging stations. In 2022–2023, the NCR used 113.43 million kWhr of electricity, or more over half of the 205 million units (mu) used nationwide. Over 96% of India’s electricity consumption at EV charging stations happens at three regions —Delhi (NCR), Rajasthan (57.28 mu) and Gujarat (24.10 mu). Apart from Delhi, Rajasthan, and Gujarat, only two other states crossed 1 million units in consumption at EV stations, with West Bengal consuming 3 mu and Bihar, 2.55 mu. 

US: EPA to scrap planned EV volumes from biofuel blending rule

According to Reuters, the Biden administration will drop a plan to include the electric vehicle industry in the U.S. biofuel blending programme and withdraw trade credits that could have been worth billions of dollars. The Environmental Protection Agency (EPA) — an independent executive agency of the US govt tasked with environmental protection matters — was earlier considering delaying the EV program. The White House is yet to release a final rule on the matter, slated for later this month. By abandoning the proposal, the administration moves further away from the goal that businesses like Tesla Inc. have advocated for, which would have permitted electric vehicles to earn approximately 2 billion credits under the U.S. Renewable Fuel Standard over the next two years. The EV programme would have helped President Joe Biden achieve his objective of electrifying the automotive sector in order to combat climate change.

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