The Indian government is pushing very hard for electric vehicles to reduce dependency on fossil fuels. This push has resulted in electric two-wheelers seeing a major increase in adoption in the country. The government now is giving credit for the accelerated adoption to the remodelled Faster Adoption and Manufacturing of Electric Vehicles II (FAME-II) scheme.
The heavy industries ministry has claimed that the sales of electric two-wheelers increased to over 5,000 units weekly from just 700 units per week, after the government remodelled the FAME-II scheme in June this year.
The second phase of the FAME scheme comes with an outlay of Rs 10,000 crores, which the government expects to incentivise the demand for electric vehicles. This Rs 10,000 crore budget is being used by the central government to provide Electric Vehicle (EV) buyers with a subsidy, while also creating EV charging infrastructure throughout the country.
To recall, back in June, the central government redesigned the FAME-II scheme with learnings from the Covid-19 pandemic and feedback from people and the auto industry. With the redesigned scheme, the government looks to increase the speed of electric vehicle adoption in the country by lowering the upfront costs.
It has revealed that in 2021, it has subsidised a total of 1.4 lakh electric vehicles. The incentives amounted to Rs 500 crore for 1.19 lakh electric two-wheelers, 20.42k electric three-wheelers and 580 electric four-wheelers. Apart from this, the government has also revealed that a total of 1.85 lakh EVs have been incentivised under the FAME-II scheme to date.
The increase in the demand for electric vehicles can be attributed to multiple factors including the rapidly increasing price of fossil fuels, performance gains, preference for personal mobility during the pandemic, and more. There is also the fact that the selection options for electric two-wheelers has increased rapidly, providing potential customers with a wide variety that they can choose from according to their preference.
Apart from the FAME-II scheme the customers also are benefiting from state governments’ EV policies and subsidies.
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