The amendments to the FAME-II electric vehicle policy were rolled out in the last month and manufacturers have lauded the efforts in adopting EV mobility in the country.
Source: Financial Express. Read The Article
The government partially modified the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II. Further, it has included an additional demand incentive for electric two-wheelers to ₹15,000 per KWh from an earlier uniform subsidy of ₹10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids except buses.
This decision will increase subsidies for such vehicles by 50% under the FAME II scheme and be a game-changer in adopting EVs.
“The revision in the FAME (II) policy, increasing the subsidy by 50% per KWh, is an unprecedented move, says Tarun Mehta, Ather Energy CEO and Co-founder. “Sales of electric two-wheelers have grown despite the pandemic. With this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock six million-plus units by 2025.”
Along with the central government, state governments are also announcing additional subsidies. Gujrat government announced a demand incentive of ₹10,000 per kWh for e2W, e3W, and e4W. Maharashtra government is also providing additional subsidies for EVs. The state government gives incentives of ₹5000 per kWh of battery, and the maximum incentive for electric two-wheelers is ₹10,000 and ₹30,000 for electric three-wheelers.
Such moves from the government will boost the faster adoption of EVs and nearing the inflection point of EV adoption. Furthermore, with this kind of solid support, OEMs will also take a step forward to accelerate the mass adoption of EV 2wh.
TVS Motor Company, one of the leaders in the recreational segment, has established a dedicated EV vertical and planning program to invest ₹1,000 crores. With this new vertical and hefty investment, TVS plans to establish its presence across all key EV segments, including the commuter market, premium scooters, high-performance bikes, electric three-wheelers, and even the delivery market. The company said its EV range would be similar to its current range of petrol-powered vehicles. PSR
Aditya Kondejkar is a Research Analyst – South Asia Operations, for Power Systems Research
