The Indian government plans to extend the FAME scheme, promoting electric vehicle adoption. However, subsidies for electric two-wheelers may end, leading to a potential 17-20% price increase. Industry experts, like Dr. Anshul Gupta, foresee a challenging transition but anticipate declining costs over time due to increased production volumes.
In the next fiscal year starting April 1, India expects the share of electric buses (e-buses) in new bus sales to rise to 8%, doubling from the previous year, reports Crisil Ratings. This surge results from the government s initiatives like the FAME scheme and the National Electric Bus Programme, aiming to make public transport eco-friendly.
Sulajja Firodia Motwani s comments come at a time when the Centre has cut subsidies on electric two-wheelers in the second edition of its flagship Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. The government is also considering the need for a third edition of the programme with demand incentives for buying EVs under FAME II set to end this financial year.
Fame Scheme: Sudden withdrawal or discontinuation of upfront price incentives will lead to up to 25 per cent price increase of EVs and this may derail EV adoption momentum substantially, also impacting further investments in the EV sector, and disrupting gains made so far, noted FICCI.
India s electric 3-wheeled mobility solutions have surged to 25% and is set to exceed 30% by FY24. Driven by ecommerce and rapid deliveries, EVs benefit from favorable policies, affordability, and eco-conscious trends. The industry s growth necessitates sustained incentives, workforce development, and collaborative efforts for a sustainable and efficient electric future.