The Indian government's latest initiative to promote electric mobility has garnered positive reactions from industry players, who see it as a crucial step towards stabilizing the sector amid the transition to electric vehicles (EVs).
The scheme, announced on Wednesday, allocates Rs 500 crore for a four-month period starting April 2024, aimed at accelerating the adoption of electric vehicles, particularly two and three-wheelers.
Dinesh Arjun, Co-founder and CEO of electric two-wheeler manufacturer Raptee, hailed the initiative as timely, providing a vital transition period for the industry as the current Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme concludes on March 31, 2024. Arjun noted that the new scheme offers a reduced subsidy of Rs 10,000 per two-wheeler until July-end, signaling the government's commitment to facilitating a smooth transition towards self-sustainability in the EV industry.
Sohinder Gill, Director General of the Society Of Manufacturers Of Electric Vehicles (SMEV), echoed Arjun's sentiments, emphasizing the government's dedication to sustainable mobility. Gill highlighted the significant allocation of funds for electric two-wheelers, stating it as a strategic investment in fostering the growth of the EV manufacturing ecosystem.
Key features of the scheme include:
· Allocation of Rs 500 crore for a four-month period starting April 2024.
· Support of up to Rs 10,000 per electric two-wheeler to accelerate adoption.
· Incentives of up to Rs 25,000 for small electric three-wheelers (e-rickshaw and e-carts), benefiting more than 41,000 vehicles.
· Financial support of up to Rs 50,000 for large electric three-wheelers.
The announcement comes as the second phase of the FAME-II program draws to a close, marking a significant transition towards a more incentivized framework to bolster the electric mobility ecosystem in India.
The second phase of the FAME-II programme is set to conclude on March 31, 2024.
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