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Electric vehicle (EV) players on Friday welcomed the launch of the 'Electric Mobility Promotion Scheme 2024' by the Union Ministry of Heavy Industries, saying that the new scheme is a significant step forward in incentivising the adoption of electric mobility.

The policy fixes a minimum investment of Rs 4,150 crore for foreign companies who want to set up electric vehicle manufacturing facilities in the country.

"With an outlay of Rs 500 crore, the scheme demonstrates the government's continued commitment to promoting sustainable transportation solutions," Akshit Bansal, Founder and CEO of EV charging infrastructure provider Statiq, told IANS.

"The provision of subsidies, including Rs 10,000 per electric two-wheeler, Rs 25,000 per e-rickshaw and e-cart, and Rs 50,000 per heavy electric three-wheeler, will undoubtedly make EVs more accessible and affordable for consumers across various segments," he added.

The scheme also stipulates a 3-year timeline for setting up manufacturing facilities in India and starting commercial production of EVs. It lays down that 50 per cent domestic value addition in manufacturing must be reached within five years at the maximum.

Bansal said that the timely introduction of this scheme, just before the conclusion of the Rs 10,000 crore FAME II scheme, ensures continuity in government support for the EV industry.

According to Himanshu Arora, CEO and co-founder of GoMechanic, in shaping India's electric vehicle policy, "we must prioritise a comprehensive approach that addresses not just manufacturing and adoption incentives, but also focuses on building robust charging infrastructure and promoting research and development".

Oben Electric Founder and CEO Madhumita Agrawal told IANS that the current times are of design, develop, and manufacture in India for the world.

"These policies are to develop the entire supply chain of electric vehicles in India and strengthen the vision and goal of becoming ‘Atamanirbhar Bharat," Agrawal added.