New Delhi: Electric two-wheeler makers on Saturday termed the federal government’s resolution to extend subsidy for such vehicles by 50 per cent under the FAME II scheme ‘a game-changer in the adoption of eco-friendly vehicles.’
The authorities had on Friday made a partial modification of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II), together with growing the demand incentive for electrical two-wheelers to Rs 15,000 per KWh from the sooner uniform subsidy of Rs 10,000 per KWh for all EVs, together with plug in hybrids and robust hybrids besides busses.
In the newest modification, the division of heavy industries additionally capped incentives for electrical two-wheelers at 40 per cent of the price of vehicles, up from 20 per cent earlier.
“The revision in the FAME (II) policy, increasing the subsidy by 50 per cent per KWh, is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million-plus units by 2025,” Ather Energy CEO and Co-founder Tarun Mehta mentioned in a assertion.
The authorities’s continued assist to drive adoption of EVs, with a eager concentrate on regionally constructed electrical two-wheelers will make India the manufacturing hub of EVs, he added.
Expressing comparable views, Society of Manufacturers of Electric Vehicles (SMEV) Director General Sohinder Gill mentioned, “It’s an important and an admirable decision taken by the government, a move that will bring down the prices of electric two-wheelers nearer to the IC (internal combustion engine) vehicles and remove one of the biggest blockade of the high sticker price of electric two-wheelers.”
Elaborating additional, he mentioned a ‘metropolis pace electrical scooter’ with a vary of 100km/cost will now value lower than Rs 60,000 and a high-speed scooter with a vary of 80 km will come nearer to the worth tag of Rs 1 lakh.
“Together with the other important factors like extremely low running cost, low maintenance and zero emission, such price levels will surely spur a substantial demand for electric two-wheelers,” Gill mentioned.
He additional mentioned, “We believe the time has come for mass adoption of electric two-wheelers and such initiatives coupled with a mass awareness campaign by the government and easy terms financing by public sector banks will bring us closer to the target of 30 per cent of the two-wheeler market becoming electric in five years.”
Likewise, Revolt Motors Founder Rahul Sharma mentioned the “modification in the FAME India Phase 2 scheme will prove to be a game changer”.
“The increase in financial incentive will further help in boosting adoption of products in the category and is a reinforcement of the government’s commitment and intent for the EV industry,” he added.
Welcoming the step, Okinawa Autotech Managing Director & Founder Jeetender Sharma mentioned, “The authorities of India’s revisions to FAME-II subsidies is a welcome step that may solely add zeal to the adoption of electrical vehicles.
Lowering the costs of electrical scooters within the nation will actually assist to steer extra riders to change from a combustion-engined mannequin to an electrical one, he added.
Stressing that the industry has all the time emphasised on the significance of making an ecosystem for electrical mobility, Sharma mentioned, “This new revision to the FAME II scheme is an important step in that direction.”
Mehta mentioned Ather Energy already has plans to broaden distribution to 30 cities within the subsequent six months and “this increased subsidy will help accelerate consumer demand, immensely”.
Sharma additionally mentioned Revolt plans to reopen reserving and additional broaden into newer markets.
“Such interventions (hike in subsidy) coupled with the ongoing focus on infrastructure development can accelerate the growth of the sector immensely,” he added.
#mute
