- 10 Sep 2024
- ICICI Securities
GREAVES COTTON INFORMED THAT MINISTRY OF HEAVY INDUSTRIES APPROVED THE REGISTRATION OF TWO-WHEELER MODELS
News: Greaves Cotton has informed that Ministry of Heavy Industries has approved the registration of two-wheeler models—Nexus, Primus, Magnus, and Zeal of Greaves Electric Mobility Private Limited (‘GEMPL’) making it eligible for the Government of India’s demand incentives under the EMPS Scheme. GEMPL’s three-wheeler business through its subsidiary is already eligible for demand incentives under the EMPS Scheme. With the latest approval, all eligible two-wheeler models are now included, positioning the company to further drive accessible and sustainable mobility across India.
Views: The approval for the incentive scheme will help the company to resurrect its EV 2W business which has earlier witnessed major volume decline on account of disqualification from the FAME Scheme. We believe, the EV business is the most critical cog in the business wheel of Greaves which can lead to rerating if the growth in volumes recover.
Impact: Positive