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News: As per media sources, total EV registrations domestically for FY24 is pegged at ~17 lakh units (6.8% penetration levels). It stood at 9.1 lakh units in the 2-W space (5.4% penetration), ~90,000 units in the PV category (2.3% penetration), ~3.5k units in Buses domain (penetration at 6.1%).
Views: Volumes for FY24 came in healthy. With lowering of subsidy per vehicle in the new transitory EV policy (with an outlay of ~₹ 500 crore for Apr-July’24 period) we expect the growth to taper for the industry in the near term and eventually gain momentum amidst technology edged product offerings by OEM’s and rationalisation of vehicle prices (led by falling battery prices). Much larger FAME-3 scheme is awaited by the new government post union elections.
Impact: Neutral