Centre extends FAME-II EV scheme for 4 months
The Indian government has extended the FAME-II scheme (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) by four months to ensure that the electric vehicle (EV) ecosystem is not disrupted. Originally set to end on March 31, 2024, the scheme now has an additional Rs. 500 crore allocation to cover subsidies for electric two-wheel vehicles(e2Ws) and three-wheel vehicles (e3Ws) until July 31, 2024. The FAME scheme was launched in April 2019 to bolster development of EV industry in India.
FAME's third phase awaits approval post elections
According to Moneycontrol, the Expenditure Finance Panel has recommended a support of Rs. 10,000 crore for the third phase of FAME scheme. However, FAME-III is expected to be approved only after the upcoming elections. In December 2023, it was reported that the central government is considering extending the second phase of FAME into the next financial year to maintain market momentum until FAME-III is approved.
Electric two-wheeler sales increase in India
Data fromVahan portal reveals that India's electric two-wheeler sales rose by nearly 24% Year-on-Year (YoY) to 81,963 units in February 2024 and surpassed 800,000 units in the first 11 months of FY24. In February 2023, EV two-wheeler registrations were at 66,053 units and peaked at 1,04,055 units in May 2023. However, since the reduction of FAME-II subsidy in June, registrations have dropped to nearly 45,000 units, as per Vahan.
FAME-II aligns with government's environmental objectives
The FAME scheme was designed to promote the adoption of electric vehicles as a measure to mitigate pollution. It aligns with India's broader environmental goals by encouraging the use of renewable energy in transportation. The scheme's extension ensures continued support for eco-friendly mobility solutions. This initiative is part of India's commitment to reducing its carbon footprint and improving urban air quality.
