NEW DELHI: The approval of Rs 10,000 Faster Adoption and Manufacturing of Electric & Hybrid Vehicles (FAME II) has brought excitement and cheer all around the automotive industry. The much awaited scheme to promote electric and hybrid vehicles has been welcomed as major push towards scalability of green mobility in the country.
The Society of Indian Automobile Manufacturers (SIAM) has welcomed the announcement of the FAME II Scheme that was approved by the Cabinet Committee yesterday, late evening (28th February 2019). This will provide a big fillip to our joint efforts to introduce higher levels of Electric Mobility in the country said Rajan Wadhera, President, SIAM.
As per our understanding, the FAME II will focus on EVs used for commercial applications and two/three wheelers and in creating the necessary infrastructure and ecosystem for EVs, which is a welcome move. While the details of the Scheme will be known shortly, the announcement of the Scheme, in itself, is a major milestone and augurs very positively for ushering clean and sustainable mobility in the country which the industry and SIAM will fully support, said Wadhera.
Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV), said “We are thankful to the government for considering our demand for a long-term scheme with substantial fund support. The support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally. We look forward to seeing the final notification from the concerned ministry, which will give us clarity on the government’s roadmap of e-mobility.”
Last evening cabinet approved much awaited FAME II policy that will provide promotional funds for electric vehicle and its infrastructure. The amount has been increased to Rs. 3,333 cr each year as compared to a total of Rs. 895 cr for two years between 2015 -2017 in FAME I.
The scheme focuses on buses, three wheelers & four wheelers used for commercial purpose or public transport. Only 2 wheelers for private use will be under this policy. And second focus is on EV charging stations where it expects to put up 2700 stations under this policy in metros with availability of 3km x 3km grid.
Sameer Kalra, Equity Research Analysts & Founder Target Investing said, “The policy will benefit cab aggregators & delivery businesses as they have the largest fleet of passenger cars and supporting them will help increase of EV share much faster. It should also benefit Ashok Leyland, JBM Auto, Tata Motors, M&M, TVS, Atul Auto & ABB India.
Ayush Lohia CEO Lohia auto said “Rs 10,000 crore package will give the green fuel the much-needed push in India. This subsidy will make two and three-wheeler electric vehicles very attractive to customers as it would end up bringing down their costs viz-a-viz petrol vehicles. It will also increase sales push, consumer acceptance and help build a customer base.”
He further added, “We welcome government has proposed the establishment of charging infrastructure, whereby close to 2700 charging stations will be installed in metros, other million-plus cities, smart cities and cities of hilly states across the country which is going to give a major push to e vehicle user”
Industry experts believes that investments in charging infrastructure will address range anxiety in cities and establishment of charging points will provide the necessary boost to inter-city bus operators to seriously evaluate electric buses.
“Overall a well-crafted scheme addressing concerns of industry and consumers alike and should provide the initial boost to the EV industry in India” said Rohan Roa, Partner, KPMG