EV Two-wheeler Sales Breach FY23 Figures Despite Cut in FAME-II Subsidy
The Centre, on Friday, informed that the electric vehicle (EV) two-wheeler sales have increased in the current financial year 2023-2024 (FY24) at 734,760 units so far, despite reducing the subsidy to 15 per cent of the ex-factory price from the existing 40 per cent under the ‘FAME India Phase-II’ scheme.
The information was shared by the Minister of State for Heavy Industries, Krishan Pal Gurjar, in a written reply in Rajya Sabha amid the ongoing Budget session of the Parliament.
The government data shows that 728,271 EV two-wheelers were registered in India last financial year (FY23). With about two months still left in FY24, the EV sales show an optimistic future for the electric automobile sector ahead.
No slow-down of sales despite lower subsidy
“….As per the inputs received from the Ministry of Road Transport and Highways, no slow-down has been observed in the sale of electric two-wheelers in the country after subsidy reduction per unit to 15 per cent of the ex-factory price from 40 per cent for e-2Ws under the FAME India Scheme Phase-II,” the Centre said.
The decision was taken after necessary consultations with all stakeholders and the project execution committee for the scheme, the Centre said.
What is FAME-India Scheme phase-II?
In a bid to accelerate EV adoption, the Centre provides subsidies under the ‘FAME India Phase-II’ scheme. The policy, implemented in April 2019, offered upfront incentives for the purchase of EV vehicles and resources to establish charging Infrastructure for electric vehicles.
Under FAME-India Scheme phase-II, no incentive is given to electric vehicle manufacturers. This is a consumer-specific initiative.
FAME-India Scheme phase-II has a total outlay of Rs 10,000 crore, according to a Centre’s press release dated February 2019. The scheme has a March 2024 deadline and is an expanded version of ‘FAME India1’, which was launched in April 2015.