FAME II: Rs 1.5 lakh Subsidy On Electric Car Confirmed

Following the first phase of the FAME scheme, FAME II is approved and will continue to foster the development of electric vehicles in India. According to the FAME II, all under-15-lakh electric cars that are manufactured in India will be granted with a subsidy of Rs 1.5 lakh.

The earlier allocation of Rs. 5,500 crore which was deemed to be inadequate has been increased to Rs. 10,000 crore. Such a big investment is expected to prompt a rise in the electric vehicle segment. Details for the subsidy scheme are partly unveiled.

In the earlier stage, the subsidy was schemed to be available on the commercial vehicles segment only. But the recent update has extended the application to the private cars space too. This amendment will help to encourage regular customers to opt for EVs, hence, promote electric vehicles to a larger market. The subsidy allowed for each vehicle is determined by the vehicle's battery capacity. Specifically, each kWh will equal to Rs. 10,000 of subsidy.

FAME II Scheme's subsidy will cover arrays of EV models 

The next stage of the FAME scheme will be effective in the next three years. 10,000 lakh zero-emission two-wheelers along with 5 lakh electric three-wheels and 35,000 electric-powered cars are expected to be covered by the FAME II scheme. A subsidy of Rs 20,000 will be given to under-1.5-lakh electric two-wheeler. And for under Rs 5 lakh three-wheeler, there will be a subsidy of Rs 50,000. As the response to manufacturers' call for the inclusion of hybrid vehicles, the government has decided to cover 20,000 hybrid vehicles under the FAME II scheme. 

Thanks to the FAME II scheme, now customers could buy EVs at a 1.5 lakh-cheaper price

It is in the government’s vision to establish a stable, strong or even a world-leading market for EVs. As the current infrastructure for EVs in India is under-developed, it requires time and huge investment to build up the foundation for mainstreaming EVs. In the meanwhile, the provision of hybrid vehicles will fill the gap and pave the way for the full-electric cars before the infrastructure is ready.

At the moment, there are only Tata Motors and Mahindra to offer EV products in India. That’s said, with a year, there will be more and more car manufacturers to crowd into the EV space. For example, Maruti Suzuki, in partnership with Toyota, will roll off their Wagon R EV, while Hyundai will introduce the Hyundai Kona.

Be updated on the latest car news in India by visiting our website  - IndianAuto.com