FAME II Amendment: Electric vehicle manufacturers accept subsidy amendments that will promote the sales of electric two-wheelers

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The central government has increased the second phase of India’s FAME electric motorcycle program by 50%, making it more affordable as a measure that will bring significant benefits to electric motorcycles and scooter buyers. In 2021, the Ministry of Heavy Industry and State Enterprises announced that India’s FAME subsidy for Phase 2 electric motorcycles would be Rs. 15,000 per kWh. It used to be Rs 10,000 per kWh. In addition, the funding limit for electric motorcycles is 40% of the cost. For electric motorcycles eligible for the FAME India Phase II subsidy, the maximum factory price cannot exceed Rs 15,000. In addition, the minimum flight range should be 80 km, and the minimum and maximum speed should be 40 km / h. ‘

In a statement, Sudarshan Venu, co-managing director of TVS Motor Company, said incentives for electric motorcycles would increase market penetration and encourage indigenous peoples to invest in future technologies. The company is currently selling TVSiQube electric scooters in India. Rahul Sharma Revolt Motors founder said: The increased financial incentives will enable more efficient use of this product category and strengthen the government’s commitment and intentions towards the electric vehicle industry. Revolt has embraced this development with enthusiasm as it plans to continue its ownership and expand into new markets. These measures, along with the continued focus on infrastructure development, can significantly accelerate the sector’s growth. “Some of the products the company sells are RV300 and RV400 motorcycles.

“The revision of FAME’s policy to increase subsidies to 50% per kWh is a phenomenal step. Electric motorcycle sales have continued to grow despite the pandemic, and this additional subsidy will lead to millions of sales in the electric motorcycle market by 2025. Ather Energy already plans to expand sales to 30 cities over the next six months, and this increase in subsidies is accelerating consumer demand to stimulate the adoption of electric vehicles, with a focus on locally produced electric motorcycles. Possibly, ”said Tarn Mehta, CEO, and co-founder of Other Energy. Plus and Ather 450X.

In March 2015, the Ministry of Heavy Industry under the Ministry of Heavy Industry and Public Enterprise launched the Faster Adoption and Manufacturing of Electric Vehicles (Hybrid and) in India (FAME India) plan, which cost 7.95 billion rupees to promote electric vehicles. FAME India is the first of the plan The phase started on April 1, 2015, and lasts for two years. Although multiple extensions are allowed, the last extension was until March 31, 2019, and the total expenditure increased to 8.95 billion rupees.

The second phase of the FAME India plan started on April 1, 2019, with a three-year period and a total expenditure of 10,000 crore rupees. In the second phase of FAME India, the government aims to support 1 million electric two-wheelers, 500,000 electric tricycles, 55,000 electric four-wheelers, and 7,000 electric buses through subsidies, and establish a nationwide electric vehicle charging base facility.