FAME II electric two-wheeler discount policy: Who said what
- The Centre has decided to increase FAME II incentives for electric two-wheelers to ₹15,000 per kWh.
- Out of the ₹10,000 crore subsidy earmarked in the FAME II scheme, two-wheelers are the largest beneficiary, specially the e-scooters.
The Centre has decided to increase FAME II incentives for electric two-wheelers with an aim for faster adoption and manufacturing of electric vehicles in India. The decision, which was announced last week, will also reduce burden on EV manufacturers by increasing subsidies on electric two-wheelers and was welcomed by industry leaders.
Here is a look at who said what after the decision to increase Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME II) subsidy on electric two-wheelers.
Tarun Mehta, CEO and Co-founder at Ather Energy:
"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. This increased subsidy will help accelerate consumer demand, immensely."
Bhavish Aggarwal, Chairman and Group CEO at Ola:
“I welcome the government’s amendment to the FAME II subsidy. The incentive of Rs.15,000 per KWH will help make electric 2 wheelers affordable for many more consumers. I believe India has the potential to lead the world in sustainable mobility and become a big market as well as a global EV manufacturing hub. Our Ola Futurefactory will be coming online soon and we will be aggressively pricing our range of electric scooters. With yesterday’s policy incentives, we will be able to accelerate the global transition to sustainable mobility even faster.”
Sudarshan Venu, Joint Managing Director at TVS Motor Company:
“We welcome the government’s continued support to EVs. Sustainable mobility solutions are very important for the future and TVS is investing significantly behind this. The improved incentives for electric two wheelers will increase penetration. Such policy direction should lead to indigenous development of future technology. Sustainable mobility solutions are very important for the future and TVS is investing significantly behind this. The improved incentives for electric two wheelers will increase penetration. Such policy direction should lead to indigenous development of future technology.”
Naveen Munjal, Managing Director at Hero Electric:
"The increase in the cap of subsidies for EVs will be a game changer driving consumers towards electric scooters even as petrol prices continue to touch the ₹100 mark."
Sohinder Gill, Director General at Society of Manufacturers of Electric Vehicles (SMEV):
"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. 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. 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."
Rahul Sharma, Founder of Revolt Motors:
"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."
Jeetender Sharma, Managing Director & Founder of Okinawa Autotech:
"The government of India's revisions to FAME-II subsidies is a welcome step that will only add zeal to the adoption of electric vehicles. Lowering the prices of electric scooters in the country will really help to persuade more riders to switch from a combustion-engined model to an electric one. This new revision to the FAME II scheme is an important step in that direction."