The electric two-wheelers sales went down in the April-June quarter. Only ten manufacturers are getting subsidies under the government’s FAME II scheme for the electric vehicles push. Only 10 electric vehicles firms getting FAME benefits.
Only 10 electric vehicles firms getting FAME II scheme benefits
The government’s FAME India (faster adoption and manufacturing of electric vehicles in India) launched by the Department of Heavy Industry and public enterprises. It has set up some stricter localization norms. It aims to promote the domestic manufacturing of electric vehicles and components. The FAME II had commenced this year from April 1 with an outlay of 10,000 crores.
Society of Manufacturers of Electric Vehicles (SMEV)
According to the Society of Manufacturers of Electric Vehicles (SMEV). Under the FAME India, only 1,700 electric two-wheelers were sold till June quarter, when compared to the electric vehicle sold last year, that is 30,000 units.
Electric vehicles manufacturers
The five electric vehicles manufacturers including Ather Energy, Ampere, Okinawa, Jitendra Electric Vehicles, and Hero Electric. These are the only manufacturers to get the FAME II subsidy and managed to get the eligibility certificate.
There are 88 models of electric two-wheelers sold by 18 manufacturers were eligible under the FAME subsidy. Many of these vehicles are not eligible for subsidy it couldn’t meet the scheme’s criteria and lost the support of the government.
There is a huge problem of batteries in India as there are no makers of batteries. Hardly we have only two or three manufacturers who are making EV batteries. And above it, the government’s strict guidelines bring down the sales rates in the country.
To avail the subsidy under FAME India, electric two-wheeler manufacturers must source more than 50% of the components locally then only the EVs will be certified as eligible to avail the incentives.
According to the commerce ministry data, the import of electric two-wheelers in the June quarter is recorded to the doubled from the last year quarter to 2,170 units.
Whereas electric three- and four-wheeler categories manufacturers such as Tata Motors, Mahindra and Mahindra, Kinetic Green Energy and Power Solutions, and Saarthi have received the eligibility certificates till now as per the SMEV.
Gazette Notification For FAME India Scheme Phase-II, the electric two-wheeler is eligible for a subsidy of 10,000 per kWh (kilowatt-hour) of battery capacity. Rs 2,000 crore has been reserved to support the sale of a million electric two-wheelers by the end of March 2022.
There is some relaxation to the EV manufacturers and buyers after the GST rates have been reduced. But that alone will not work for the growth and sales of EVs in the country. The FAME subsidies will help more to the manufacturers and the buyers.
There is a need for the government to provide subsidies to set up manufacturing plants of EVs components. As many components are imported from other countries mainly from China, etc.
The manufacturers must make use of local components as much as possible to avail the benefits of the FAME scheme.
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