India is witnessing a surge in the sales of electric vehicles (EVs) in the last two years.
Spike In EV Sales In Country
Coming to numbers, over 48,179 EVs were sold in 2020-21.
The figures further grew to 2,37,811 in 2021-22 and 4,42,901 in 2022-23 (till December 9).
On Tuesday, the Minister of Heavy Industries, Mahendra Nath Pandey said the ministry has implemented a scheme titled ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II’ (FAME India Phase II) to promote adoption of electric/hybrid vehicles in the country, in a written reply in the Lok Sabha.
So now they are in the process of implementing the Phase-II of the FAME India scheme which is being implemented for a period of five years from April 1, 2019.
A total budgetary support of Rs 10,000 crore is allocated to this project.
Faster Adoption and Manufacturing of Electric Vehicles in India Phase II
In this phase, the ministry is focusing on supporting electrification of public and shared transportation through subsidies for 10 lakh e-two-wheelers (e-2Ws), 5 Lakh e-three-wheelers (e-3Ws), 55,000 e-four-wheeler (e-4Ws) passenger cars, and 7090 e-buses.
In total, 64 original equipment manufacturers (OEMs) of electric vehicles have been registered as of December 9.
The reply mentions that over 7.47 Lakh EVs under FAME India Phase II have been sold.
As part of the FAME India Phase-II, demand incentive/subsidy is given to consumers (buyers/end users) in the form of an upfront reduced purchase price of hybrid and electric vehicles.
This would help to enable wider adoption, which is reimbursed to the OEMs by the government of India.
Further, Pandey said that the ministry has received complaints regarding misappropriation of subsidies under FAME India Phase II by some EV manufacturers.
Basically, these complaints are mainly related to violation of the phased manufacturing programme (PMP) guidelines under FAME India Phase II.
The reply mentions that all the complaint cases have been referred to the testing agencies for re-verification.
In response, the models of these two OEMs have been suspended from the FAME scheme, after examination of reports in respect of two OEMs.
The reply noted, the processing of their pending claims has been stopped till they submit sufficient evidence to show their compliance to PMP timelines.
Basically, the FAME India scheme is demand driven as It helps in demand generation of EVs by way of reducing the cost of acquisition of such vehicles.
So, if the demand for EVs increases, the pace of implementation of FAME India also goes up.
