Recently, the Indian government has reinstated the subsidy for four electric two-wheeler makers under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) 2 scheme.
Here are the main points:
1. The companies involved in this are Ola Electric, Ather Energy, TVS, and Vida.
2. Earlier, these companies were accused of taking advantage of loopholes in the FAME 2 subsidy scheme by selling chargers and proprietary software individually as separate accessories to meet the Rs 1.5 lakh ex-showroom requirement and qualify for the subsidy.
3. As a result, the Indian government temporarily suspended the FAME 2 subsidy for these brands and obliged them to refund their current customers.
4. However, after the manufacturers agreed to reimburse their customers, the Ministry of Heavy Industry lifted the suspension from these companies.
5. Ola Electric will receive the largest payout of subsidy, around Rs 370 crore, followed by Ather with Rs 275 crore.
6. TVS is expected to be refunded around Rs 150 crore, and Hero Motocorp’s electric venture Vida will receive roughly Rs 30 crore.
7. The FAME 2 scheme was launched in April 2019 to encourage faster adoption of electric vehicles by providing incentives to manufacturers and buyers.
8. The scheme’s objective is to support the development of a market for electric vehicles in India, promote sustainable growth, and reduce the country’s dependence on fossil fuels.
9. The FAME 2 scheme provides incentives to electric two-wheelers and electric vehicles for public transportation, as well as charging infrastructure for electric vehicles.
10. To qualify for the FAME 2 subsidy, an electric two-wheeler must have a minimum range of 80 km per charge and a maximum ex-showroom price of Rs 1.5 lakh.
11. The subsidy rate for electric two-wheelers under FAME 2 is 20% of the ex-showroom price, subject to a maximum of Rs 20,000 per vehicle.
12. The reinstatement of the FAME 2 subsidy for these companies is expected to boost the adoption of electric two-wheelers and support the government’s goal of achieving 30% electric vehicle penetration by 2030.
13. The Indian government is actively promoting the adoption of electric vehicles through various initiatives, such as tax incentives, subsidies, and the installation of charging infrastructure.
14. In the future, the Indian government plans to expand the FAME 2 scheme to cover electric cars, electric buses, and electric three-wheelers.
15. The government’s efforts to promote electric vehicles are expected to create new opportunities for manufacturers, reduce air pollution, and promote sustainable growth in the country.
In conclusion, the reinstatement of the FAME 2 subsidy for Ola Electric, Ather Energy, TVS, and Vida is a positive development for the electric vehicle industry in India. The move is expected to encourage faster adoption of electric two-wheelers and support the government’s goal of achieving 30% electric vehicle penetration by 2030.
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