The Union Government has decided to extend the FAME-II scheme to another two years. The FAME-II scheme which was started in 2019 for quicker adoption of localised electric vehicles has met with a huge amount of success recently. This success can be attributed to the government’s EV policy as well as those of the state ministries. Moreover, news of RIL investing close to Rs 75,000 crore for developing a battery as well as hydrogen facility is a big boost. The FAME-II scheme has now been extended till March 31, 2024. With the pandemic setting in, EVs were decidedly looked upon as a better means of transportation. This being said, the higher price tag was a deterrent to many, the other persistent issues like charging infrastructure, range anxiety notwithstanding. The government’s recent decision to add more incentives is helping utilise the Rs 10,000cr that was earlier earmarked for FAME-II in 2019.
Due to the recent price cut, scooters like the Ather 450X as well as motorcycles such as the Revolt RV400 have come closer to their ICE rivals in terms of pricing. In some states, the electric two-wheelers undercut the prices of the popular bike that run on petrol. This will definitely attract the audience as traditionally our country is known to be one that looks at a value-for-money quotient and is quick in picking up trends.
Sohinder Gill, DG, SMEV said, “We welcome the extension of the FAME-II scheme. This will allow the EV industry more time to extend the benefits to customers, due to the recent amendments and achieve the target under the scheme. In the last few months, we have seen many measures have been announced by Central and State Governments, which have brought positive sentiments in the industry. The industry is prepared for a major transformation and we will see EVs occupying major space in the county in the next 5 years.”
Naveen Munjal, MD, Hero Electric said, “The last few months have seen the industry benefit from the conducive policies and amendments being rolled out by the government to push adoption of Electric vehicles in India. With the extension of the FAME-II scheme for two more years allows us to pass on the benefits to the consumers who have shown interest in EVs over ICE vehicles. At Hero, we have always maintained that a conducive policy is the only way to encourage adoption of a cleaner mode of transport. This will lead to a positive sentiment overall and help in achieving targets set by the industry to grow the segment. Hero is also prepared to scale up its production to meet demand owing to these developments.”
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