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Alternative transport solutions such as electric and hybrid vehicles have gained acceptance among Indian consumers following the launch of FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) incentive scheme.
“FAME, which is in the second year, has seen very encouraging response. About 80,000 electric and hybrid vehicles have been sold since the launch of the scheme. The industry has also started developing many more electric and mobility solutions suited to the Indian consumers,” Vinod K Dasari, President of SIAM, said here.
He urged the government to come out with longer terms schemes with larger outlays towards the FAME scheme. “The FAME at present covers only certain regions and it should be extended to the entire country as soon as possible,” he added.
The FAME scheme, which offers incentives for electric and hybrid vehicles and is expected to continue till 2020, would help in annual fuel savings worth ₹60,000 crore in addition to reducing pollution.
“The environment is one of the biggest concerns for the sector. We have therefore allocated ₹14,000 crore for the FAME scheme for promoting hybrid and electric mobility, which will save ₹60,000 crore fuel, thereby benefiting the environment,” said Anant G Geete, Union Minister of Heavy Industries and Public Enterprises, at the SIAM convention.
Under the FAME scheme, which is under National Electric Mobility Mission Plan 2020, government offers incentives of₹ 1.38 lakh for electric and hybrid cars and ₹29,000 for bikes and the government had budgeted about ₹800 crore for the initial two years. The scheme aims for a cumulative fuel savings of about 9,500 million litres equivalent resulting in reduction of pollution and green house gas emission of 2 million tonnes with targeted market penetration of 6-7 million vehicles by 2020.
About 10 companies, including Mahindra Reva, Electrotherm, Maruti Suzuki, Hero Electric, Toyota and Lohia Auto, are presently engaged in manufacturing electric and hybrid vehicles in the country, according to the Department of Heavy Industry.
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