Centre makes revisions to FAME II scheme; here's how your plan to buy EVs can be impacted

The Ministry of Heavy Industries has made revisions to the demand incentives under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme. The FAME II scheme was approved with a budget of Rs 10,000 crore for a three-year duration, starting from 1 April 2019. Its primary objective is to stimulate nationwide demand for electric two-wheelers, three-wheelers, passenger cars, and e-buses. As per the ministry, the changes in FAME II scheme will come into effect on 1 June this year and will be applicable to any electric two-wheelers registered on or after that date. These changes encompass a reduction in the maximum subsidy ceiling from 40 percent to 15 percent. The revisions also include a decrease in the subsidy provided for electric two-wheelers from the existing rate of Rs 15,000 per kWh to Rs 10,000 per kWh.

Emphasising the government’s dedication to supporting the industry in attaining sustainable growth and reducing carbon emissions, Union Minister of Heavy Industries Mahendra Nath Pandey highlighted the increasing demand for electric two-wheelers. Pandey is confident that the measure will yield positive outcomes for both the environment and the economy, strengthening them and making them more resilient. Following the recent modifications in the scheme, it is anticipated that the growth rate of electric two-wheeler sales may experience a slight decline due to increased prices, even though it will contribute to establishing a robust EV ecosystem in the country. This amendment could also prompt original equipment manufacturers (OEMs) to introduce scaled-down versions of their products to maintain their market dominance. According to JMK Research & Analytics, India witnessed the launch of five EVs in April. As per reports, there was a 21 percent year-on-year decline in EV sales in April, with a total of 110,503 units sold. Electric two-wheelers and passenger-oriented electric three-wheelers were the main contributors to EV registrations in April 2023, representing 90.48 percent of all registrations during the month. During the previous month, Uttar Pradesh, Maharashtra, Karnataka, and Gujarat maintained their positions as the leading states in terms of EV adoption in the country, with a combined total of 21,845 units sold. Ola Electric emerged as the frontrunner among the companies, while Ampere surpassed TVS Motors to secure the second position. TVS Motors and Ather stood at the third and fourth positions, respectively. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.