The Union Finance Ministry has greenlit an additional INR 1,500 Cr infusion into the second phase of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) program. These subsidies will continue to incentivize the purchase of electric two, three, and four-wheelers until March 31, 2024, or until the funds are depleted, whichever comes first.
Extension of Incentives
Amidst speculation regarding the future of EV incentives, the ministry's decision to bolster FAME-II provides a clear signal of continued government support. The scheme, now enhanced to INR 11,500 Cr from INR 10,000 Cr, reinforces the government's commitment to accelerating the adoption of electric vehicles.
Subsidies Breakdown
Of the revised allocation, INR 7,048 Cr is earmarked for electric two, three, and four-wheelers, with a substantial portion of INR 5,311 Cr dedicated to electric two-wheelers. Additionally, INR 4,048 Cr has been allocated for electric buses procurement and EV charging station infrastructure development, emphasizing a holistic approach towards EV ecosystem development.
Focused Objectives
The FAME-II scheme, launched by the Ministry of Heavy Industries, targets the electrification of public and shared transportation over a five-year period. With the goal of deploying 7,090 eBuses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakh e-2 Wheelers, the scheme underscores the government's commitment to fostering sustainable mobility solutions.
Progress Update
As of February 7, 2024, phase-II of the FAME India Scheme has facilitated the sale of 13,63,266 electric vehicles, amounting to INR 5,854 Cr in total sales. This highlights the significant traction gained by EV manufacturers and consumers alike under the scheme.
Future Outlook
While the recent interim budget reduced the allocation for EV demand incentives in FY25, the government's continued investment in FAME-II underscores its long-term vision for a greener and sustainable transportation ecosystem.
As the Ministry of Heavy Industries aligns its budgetary allocations with evolving priorities, stakeholders remain optimistic about the trajectory of India's electric mobility journey.
