EV two-wheeler sales surpass FY23 figures despite reduction in FAME-II subsidy
FAME-India Scheme Phase II has a total outlay of Rs 10,000 crore.
The Center on Friday said sales of electric vehicle (EV) two-wheelers have increased to 734,760 units so far in the current financial year 2023-2024 (FY24) despite a reduction in subsidy to 15 percent off price factory. price from the existing 40 percent under the ‘FAME India Phase-II’ scheme.
The information was shared by Minister of State for Heavy Industries Krishan Pal Gurjar in a written reply in Rajya Sabha during the ongoing Budget session of Parliament.
Government data shows that 728,271 EV two-wheelers were registered in India last financial year (FY23). With about two months left in FY24, EV sales show an optimistic future for the electric car sector.
No slowdown in turnover despite lower subsidies
“…According to the data received from the Ministry of Road Transport and Highways, no slowdown has been observed in the sales of electric two-wheelers in the country, following a unit subsidy reduction to 15 percent from the erstwhile factory price of 40 percent for e-2Ws under the FAME India Scheme Phase-II,” the Center said.
The decision was taken after necessary consultations with all stakeholders and the project implementation committee for the scheme, the Center said.
What is FAME-India Scheme Phase II?
In a bid to accelerate the adoption of electric vehicles, the Center is providing subsidies under the ‘FAME India Phase-II’ scheme. The policy, which was implemented in April 2019, provided upfront incentives for the purchase of EV vehicles and resources to set up EV charging infrastructure.
Under FAME-India Scheme phase II, electric vehicle manufacturers are not incentivized. This is a consumer-specific initiative.
FAME-India Scheme phase-II has a total outlay of Rs 10,000 crore, according to a Centre’s press release dated February 2019. The scheme has a deadline of March 2024 and is an expanded version of ‘FAME India1’, which was launched in April 2015 launched. .
First print: February 9, 2024 | 5:15 PM IST