By Central Government Initiatives for Electric Vehicles
The central government has been actively promoting the manufacture and adoption of electric vehicles through various schemes over the years. The Faster Adoption and Manufacturing of Electric Vehicles Scheme Second Phase (FAME-2), which has been providing subsidies for electric vehicles, is set to conclude on March 31. In anticipation of its expiration, a new scheme has been devised to ensure continued support for electric mobility.
Continued Growth in Electric Vehicle Sales
Electric vehicles continue to witness strong sales across the country, with various manufacturers offering vehicles equipped with modern features and functionalities. Like traditional petrol vehicles, electric vehicles are gaining popularity for their speed and aesthetics . Furthermore, they provide significant advantages including reduced operational costs and environmental benefits. The upcoming cessation of FAME-2 subsidies underscores the importance of implementing new schemes to sustain this momentum.
Introduction of Electric Mobility Promotion Scheme 2024
To further incentivize the adoption of electric vehicles, the Central Government has launched the Electric Mobility Promotion Scheme 2024. With an allocation of approximately Rs. 500 crore, this scheme is set to commence on April 1 and will span four months.
Details of Subsidies in the New Scheme
The Electric Mobility Promotion Scheme offers various subsidies aimed at boosting the purchase and usage of electric vehicles. Under this scheme, 3,33,387 two-wheelers will receive a subsidy of Rs. 10,000 each, amounting to Rs. 33,339 crore. Additionally, electric three-wheelers will receive a subsidy of Rs. 25,000, with 13,590 e-rickshaws allocated funds worth Rs. 33.97 crores. Furthermore, electric autos will be eligible for a maximum incentive of Rs. 50,000, with a total allocation of Rs. 126.19 crores. Overall, Rs. 500 crore has been earmarked for subsidies over the course of four months starting April 2024.
Conclusion of the FAME Scheme
As the FAME-2 scheme draws to a close, the transition to the new Electric Mobility Promotion Scheme signifies the government’s commitment to advancing electric mobility in the country. Adjustments have been made, including a budget increase from Rs. 10,000 crores to Rs. 11,500 crores, to address challenges in the electric vehicle market exacerbated by the Covid-19 pandemic, ensuring sustained support for the sector while FAME-1 and FAME-2 schemes have played pivotal roles.
