Ampere Maker Greaves Electric CEO Foresees EV Sales Boom Despite Subsidy Hit
India is already reaching the inflection point of about 5% penetration of electric mobility in two-wheelers, says Sanjay Behl.
Greaves Electric Mobility Pvt., the maker of Ampere electric scooter, expects the EV sales boom in India will continue even as incentives dried up after allegations of subsidy misappropriation by some companies.
"I expect this growth to continue. I don't see the slowdown of the growth," Sanjay Behl, chief executive officer at Greaves Electric Mobility, told BQ Prime at Auto Expo 2023. "I think we're already reaching the inflection point of about 5% penetration of electric mobility at least in two-wheelers segment."
Once that level of penetration is achieved, the industry will see accelerated growth and has potential to continue to double not in one year but many years forward, he said.
The Society of Manufacturers of Electric Vehicles has said that withholding of around Rs 1,100 crore subsidy by the government may adversely affect volumes in FY24.
"In April 2022, the Indian electric two-wheeler market was dominated by start-ups that held 70% of the market. Today half of them are staring at possible closure," SMEV wrote to the Parliamentary Standing Committee on Electric & Hybrid Mobility earlier this month.
According to the letter, the Ministry of Heavy Industries cut off the subsidy to the top two producers of e-scooters in India without following its usual pattern of consultations. The step was followed up by blocking subsidy of three more manufacturers, which was then extended to a total of 12 such companies.
Greaves Electric Mobility is also among the companies against whom complaints have been received.
The complaints are mainly related to the violation of Phased Manufacturing Programme guidelines under FAME India Scheme Phase-II.
All the complaints have been referred to the testing agencies for re-verification, Union Heavy Industries Minister Mahendra Nath Pandey informed Lok Sabha last month.
After examination of reports against two companies, their models have been suspended from the FAME scheme. The processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to PMP timelines.