Electric 2-wheelers hail rising FAME II subsidies as a ‘game changer’
Manufacturers of electric two-wheelers on Saturday called a “phenomenal decision” by the government to increase subsidies for such vehicles under the FAME II program by 50%, saying it would be a game-changer in the adoption of environmentally friendly vehicles. the environment.
On Friday, the government had partially altered India’s FAME India Phase II (FAME India Phase II) Electric Vehicle Faster Adoption and Manufacturing Program, including increasing the demand incentive for electric two-wheelers for ₹15,000 per KWh of the previous uniform subsidy of ₹10,000 per kWh for all electric vehicles, including plug-in hybrids and powerful hybrids, except buses.
In the latest change, the heavy industries department also capped incentives for electric two-wheelers at 40% of the cost of vehicles, down from 20% previously.
“The revision of the FAME (II) policy, increasing the subsidy by 50 percent per kWh, is a phenomenal decision. Sales of electric two-wheelers have increased despite the pandemic and with this additional subsidy we expect sales electric two-wheelers to disrupt the market and register more than 6 million units by 2025, ”Ather Energy CEO and co-founder Tarun Mehta said in a statement.
The government’s continued support to drive the adoption of electric vehicles, with an emphasis on locally built electric two-wheelers, will make India the center of electric vehicle manufacturing, he added.
Expressing similar views, the CEO of the Society of Manufacturers of Electric Vehicles (SMEV), Sohinder Gill, said: “This is an important and admirable decision taken by the government, a move that will bring down the prices of both- electric wheels closer to the internal combustion engine IC) and remove one of the biggest bottlenecks in the high selling price of electric two-wheelers. “
Developing further, he said that an “urban speed electric scooter” with a range of 100 km / charge will now cost less than ₹60,000 and a high-speed scooter with a range of 80 km will approach the price of ₹1 lakh.
“Along with other important factors such as extremely low running costs, low maintenance and zero emissions, such price points will surely drive substantial demand for electric two-wheelers,” said Gill.
He added: “We believe that the time has come for the mass adoption of electric two-wheelers and such initiatives, coupled with a mass awareness campaign by the government and financing on easy terms by the banks of the public sector, will bring us closer to the 30% target. of the two-wheeler market going electric in five years. “
Likewise, Revolt Motors founder Rahul Sharma said that “the modification of the FAME India Phase 2 program will prove to be a game-changer.”
“The increase in financial incentives will further help stimulate the uptake of the category’s products and is a strengthening of the government’s commitment and intention to the electric vehicle industry,” he added.
Welcoming this step, the CEO and Founder of Okinawa Autotech, Jeetender Sharma, said, “The revisions made by the Indian government to the FAME-II grants are a welcome step that will only add zeal to the adoption of electric vehicles.
Lower prices for electric scooters in the country will really help persuade more drivers to switch from a combustion engine to an electric model, he added.
Emphasizing that the industry has always insisted on the importance of creating an ecosystem for electric mobility, Sharma said: “This new revision of the FAME II program is an important step in this direction.
Mehta said Ather Energy is already planning to expand distribution to 30 cities over the next six months and that “this increased subsidy will help accelerate consumer demand, tremendously.”
Sharma also said Revolt plans to reopen bookings and expand further into new markets.
“Such interventions (increased subsidies) coupled with the emphasis on infrastructure development can greatly accelerate the growth of the sector,” he added.
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