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The third phase of Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles is expected to be implimented soon in India. Ahead of the execution, Union Heavy Industries Minister H D Kumaraswamy made a big announcement, saying that the subsidies for EV will will remain in the framework until the FAME-III is implimented.
For those who are not aware, the FAME-II ended in March, and the concerned ministry has launched the Electric Mobility Promotion Scheme (EMPS) to balance the system and boost the EV segment. It was introduced until the implementation of FAME-III.
The EMPS was supposed to expire in July, but the central government decided to push the dates further. It will remain functional till the end of September with an enhanced outlay of Rs 778 crore.
As per rules under FAME and EMPS, it allows the customers to purchase battery-powered vehicles, and enjoy decent discounts as subsidies by the manufacturers. Later, the government reimburses the difference by paying to the car makers.
The strategy was introduced to give a boost to the EV segment, encouraging interested ones to get inclined towards electric vehicles instead of ICE models.
EV Sales
Meanwhile, despite all the facilities, majorly supported by the government, the EV segment saw a decrease in sales. According to the details shared by Mint, the EV reports only 5.28 percent of two-wheelers have been sold in India since 2018, while 1.99 percent of sales belong to the four-wheelers category.
