Although the current mobility scheme does not take four wheelers into consideration, the subsidies under FAME II will be provided for the four wheelers
In a further effort to grow the volume of electric vehicle adoption rate in the country, the government has now unleashed the Electric Mobility Promotion Scheme 2024 by the central minister for heavy industries, Mahendra Nath Pandey. The scheme with an allocated outlay of Rs 500 Crore is expected to expand sales of electric cars until July 2024.
Industry experts believes that the announcement is done in the correct time because the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) is slated to end on Mar 31, 2024. This scheme is particularly poised to grow the sales volume of electric three and electric two wheelers that includes the registered e-carts and e-rickshaws. A total outlay of Rs 439.55 crore has been sanctioned by the ministry to offer ample incentives and subsidies to electric two and three wheelers.
Moreover, an additional expense of Rs 6.45 crore has been offered to grow the administrative schemes such as activities to popularize EV based communication, education and spreading information. Although the current mobility scheme does not take four wheelers into consideration, the subsidies under FAME II will be provided for the four wheelers. The primary aim of this scheme is to provide assistance to 372,215 vehicles in the country, comprising 38,828 electric three wheelers and 333,387 electric two wheelers. It includes 13,590 e-carts and rickshaws, and 25,238 e-3W in the L5 category.
The government has clearly notified that incentives will be provided to those vehicles, which are furnished with advanced batteries in order to promote the utilization of new technologies. The FAME Phase II launched on April 01, 2019 has a total budget of Rs 10,000 crore and is valid for five years. Around 1.47 million vehicles have been sold under this scheme, according to the National Automotive Board. The government is still having discussion with the industry bodies and the manufacturers to approve the third phase of the scheme.
