5,000+ electric two-wheelers sell weekly in India, govt gives credit to FAME-II
Sales of electric two-wheelers have increased significantly in India. The government gives the credit to remodelled FAME-II scheme for boosting sales of the electric two-wheelers in the country. As the heavy industries ministry on Wednesday has claimed, the sales of electric two-wheelers have increased to more than 5,000 units every week from 700 units per week, after the remodelling of the FAME-II scheme in June this year.
The central government introduced the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme with an outlay of ₹10,000 crore to incentivize the demand for electric vehicles. The government provides upfront subsidies to electric vehicle buyers and also creates EV charging infrastructure under this scheme.
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In June 2021, the central government redesigned the FAME-II scheme based on experience particularly during the Covid-19 pandemic and feedback from the auto industry and users. As the government claims, the redesigned FAME-II scheme aims at a faster proliferation of electric vehicles by lowering the upfront costs.
The government also said that in 2021, so far, a total of 1.4 lakh electric vehicles have been incentivized up to December 16. The incentives allotted for these electric vehicles amount to around ₹500 crore under the FAME-II scheme. These incentivized electric vehicles include 1.19 lakh electric two-wheelers, 20.42k electric three-wheelers and 580 electric four-wheelers as well. The government also claims that a total of 1.85 lakh units of electric vehicles have been incentivized under the FAME-II till now.
The demand for electric two-wheelers has been increasing since last year, owing to multiple factors. These include the high cost of motor fuels like petrol and diesel, preference for personal mobility over using public transport and shared mobility due to the fear of pandemic.
Apart from that, the increasing number of electric two-wheeler options in the Indian market, changing consumer perception towards EVs, additional benefits from the state governments' EV policies are also encouraging the buyers to opt for electric two-wheelers over conventional ICE-powered two-wheelers.