The Minister of State for Heavy Industries, Krishan Pal Gurjar, stated in a written reply in Rajya Sabha during the ongoing Budget session of the Parliament that the sales of electric two-wheelers have increased in the current financial year 2023-2024 (FY24) to 734,760 units so far. This growth has occurred despite the reduction in subsidy from 40% to 15% of the ex-factory price under the FAME India Phase-II scheme. According to data from the central government, 728,271 EV two-wheelers were registered in India last financial year (FY23). With two months remaining in FY24, the future of the electric automobile sector appears promising.
Growth in Sales Despite Reduction in Subsidies
The Center stated that there has been no decrease in the sales of electric two-wheelers in India even after reducing the unit subsidy from 40% to 15% under the FAME India Scheme Phase-II.
The government reached its decision after careful consultation with all stakeholders and the project implementation committee for the scheme.
Impact of the FAME India Scheme Phase-II
To boost the use of electric vehicles, the government is offering subsidies through the ‘FAME India Phase-II’ program. This policy, introduced in April 2019, provides upfront incentives for purchasing EVs and supports the development of charging infrastructure.
Under the FAME-India Scheme phase II, the focus is on consumers rather than electric vehicle manufacturers.
According to a press release from the government in February 2019, the FAME-India Scheme phase-II has a budget of Rs 10,000 crore. The program will run until March 2024 and is an expanded version of the earlier ‘FAME India1’ initiative launched in April 2015.
