The Government approved the FAME 2 Scheme recently with a much bigger budget than was previously expected. However, while the news had outlined the scope of the FAME 2 Scheme not a lot was furnished in terms of details. Now, a notification from the government has revealed details of the benefits of the FAME 2 in full detail. Aside from aides for infrastructure and public transport the FAME 2 scheme also introduces benefits for consumer electric vehicles including cars, two-wheelers and three-wheelers.
According to the latest notification the governments outline of the FAME 2 scheme, will attempt to support the sales of electric vehicles and in India with subsidies. Over the next three years, the scheme will subsidise 10 lakh electric 2 wheelers, 5 lakh electric three-wheelers. 35,000 electric 4 wheelers and 7090 Electric Buses. In fact, full-hybrids have been included too, with 20,000 vehicles included on the list of subsidised vehicles.
Through the scheme, Electric 2-wheeler manufacturers can claim benefits of Rs 20,000 per vehicle that cost no more than 1.5 lakh that can be passed down to customers. Similarly, Electric 3-wheelers will get benefits of up to Rs 50,000 for vehicles priced up to Rs 5 lakh, while 4-wheelers can avail of benefits of up to Rs 1.5 lakh for vehicles that cost up to Rs 15 lakh. While the rest of the benefits seems to cover the entirety of the market, in the case of electric four-wheelers its seems that benefits will only be made available for Indian made electric vehicles. Not by specifics but by design. This especially considering that in the course of the next three years only Mahindra Electric, Maruti Suzuki and Tata Motors will have vehicles that don’t breach this price mark.
Speaking to Express Drives the full outlay of the plan Mahesh Babu, CEO, Mahindra Electric. said, “With an outlay of Rs 10,000 crore for three years, the Indian government has assured a long-term stable policy in said, a place for electric vehicles in India. The FAME II policy aligns well with the National Mobility Mission 2020 and addresses the key issues including National Energy Security, Mitigation of the adverse impact of vehicles on the environment and Growth of domestic technology and manufacturing capabilities. As pioneers in developing Electric Vehicles in India, Mahindra supports the government’s focus to boost electric vehicles in public transportation. Mahindra sensed the need for a better first and last mile connectivity solution in India and launched India’s first electric three-wheeler (Auto) – Mahindra Treo that has been received well by both buyers and users. FAME II will further encourage many OEMs, suppliers and mobility service providers to venture and invest more in India towards the development of electric vehicles.”