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FAME -II to focus on consumer aid than direct incentives to EV manufacturers
Industry News- Jul 29,24
Launched in 2019 with an initial budget of Rs 100 billion, and later supplemented with an additional Rs 15 billion, the FAME II scheme aims to accelerate electric vehicle adoption in India.
In a recent Rajya Sabha session, Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma clarified that the FAME-India Scheme phase-II focuses on consumer benefits rather than providing direct incentives to electric vehicle manufacturers.
Launched in 2019 with an initial budget of Rs 100 billion, and later supplemented with an additional Rs 15 billion, the FAME II scheme aims to accelerate electric vehicle adoption in India. As of March 30, 2024, it has subsidised over 15.4 million electric vehicles, including approximately 13.6 million two-wheelers, 1.57 million three-wheelers, and 20,352 four-wheelers.
Notable beneficiaries of the FAME II scheme include Tata Motors for electric three- and four-wheelers and Ola for electric two-wheelers. In total, 221 electric vehicle models have received support under this initiative.
As the world’s third-largest automotive market, India is positioning itself to lead the global transition from conventional internal combustion engines to sustainable electric vehicle technology. The government anticipates that electric vehicles will become a significant segment within the automotive sector.
To further boost the EV industry, the Ministry of Heavy Industries introduced the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’ on March 15, 2024. This initiative aims to attract global EV manufacturers and establish India as a key manufacturing hub for electric vehicles. Approved manufacturers can import electric passenger cars (e-4W) at a reduced customs duty of 15% for five years, down from the current 70-100%.
The first stakeholder consultation for this new scheme took place on April 18, 2024, with major Original Equipment Manufacturers (OEMs) in attendance. This scheme complements existing initiatives like the FAME India scheme, Production Linked Incentive (PLI) schemes for the automotive sector, and Advanced Chemistry Cell (ACC) manufacturing.
Dr Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, said, “This scheme will help attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. It will also generate employment and achieve the goal of ‘Make in India’.”
The government projects that by 2030, EVs could comprise 35-40% of two-wheelers, 9-11% of private four-wheelers, and 20-25% of shared four-wheelers in India.
This comprehensive approach to promoting electric vehicles aligns with the vision for a cleaner, more sustainable, and self-reliant India. The initiative is expected to address multiple national priorities, including air pollution reduction, trade deficit improvement, decreased reliance on imported crude oil, and fostering innovation, job creation, and economic growth in the country.
(Source: DD News)
Dr Hanif Qureshi
Ministry of Heavy Industries
EV
electric vehicle manufacturers
electric vehicles
FAME
Bhupathiraju Srinivasa Varma
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