Latest Revision in FAME-II Scheme Will Bolster EV Sales in India - Industry Stakeholders

Lauding the latest revision in the FAME-II norms by the Centre, stakeholders in the sector have said that the move will substantially increase the demand for electric bikes and scooters. Hero Electric MD Naveen Munjal said: “In what will be seen as one of the most significant moves in the last decade for the electric vehicles industry, the increase in subsidy under FAME II will usher in a new era of electric mobility in India."

He was of the view that the increase in the cap of subsidies for EVs will be a game changer driving consumers towards electric scooters even as petrol prices continue to touch the Rs 100 mark.

In a statement, electric two-wheeler maker RattanIndia-Revolt Intellicorp (Revolt) said that the company, along with its customers, are set to be big gainers of the major revisions made by the government to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme which has increased the incentive for manufacturers from Rs 10,000 per kWh to Rs 15,000 per kWh.

“This would translate into Rs 48,000 incentive per bike that Revolt sells. This could mean FAME II incentives upto Rs 480 crore for current production capacity of 1 lakh bikes per annum," it said.

“This bold policy measure clearly demonstrates the intent of the government to rapidly transform the adoption of electric vehicles," Revolt and RattanIndia Enterprises Chairman Rajiv Rattan said.

Further, Revolt CEO and MD Rahul Sharma said that the decision will further incentivise both the EV manufacturers and customers and will exponentially accelerate the EV adoption in the country.

Nexzu mobility Chief Marketing Officer, Pankaj Tiwari, said: “Government’s move to increase subsidy to electric bikes and scooters by 50 per cent, subject to those that meet the FAME II criteria, is a welcome stimulus which will boost adoption and encourage research & development and innovation for enhanced customer experience."

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He was of the view that the development will provide a fillip to Indian EV companies to manufacture the finest, electric high-speed mobility solutions. It will also help firms to boost the growth of EV space across the nation, he added.

“However, we would also like to see electric bicycles fall under the ambit of the FAME-II policy with an independent incentive for two-wheelers, based on some of the key features like battery power etc," Tiwari said.

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