Auto industry welcomes FAME-II approval

S Ronendra Singh New Delhi | Updated on March 01, 2019 Published on March 01, 2019

Move will help long-term investment decisions in EV development, manufacture

The auto industry has welcomed the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) that was approved by the Cabinet on Thursday.

The scheme, with a total outlay of ₹10,000 crore over three years to be implemented from April 1, is an expanded version of the present scheme — FAME-I, which was launched in April 2015 with a total outlay of ₹895 crore.

The industry has said that it will address key issues including national energy security, mitigation of adverse impact of vehicles on environment and growth of domestic technology, and manufacturing capabilities.

‘On the fast lane’

Through the scheme, the government plans to support 10-lakh electric two-wheelers, five-lakh three-wheelers, 55,000 four-wheelers and 7,000 buses. The scheme also envisages establishment of charging infrastructure with around 2,700 charging stations in metros, other million-plus cities, smart cities and in of hilly States.

“The revised FAME-II removes all the uncertainty and will put electric vehicles (EVs) in the fast lane. Mahindra supports the government’s focus to boost EVs in public transportation and now requests local authorities to help facilitate plying of electric vehicles on Indian roads,” Pawan Goenka, Managing Director, Mahindra & Mahindra, said.

For more than two years, the industry has been eagerly waiting for the announcement of a long-term policy including the FAME-II scheme so that the adoption of EVs in the country gets a fillip.

Investments will come

According to the Society of Indian Automobile Manufacturers (SIAM), the industry is poised to make huge investments in manufacturing EVs in all categories of vehicles and developing an indigenous supply chain to ensure ‘Make in India’. “As per our understanding, FAME-II will focus on EVs used for commercial applications and two/ three wheelers and in creating the necessary infrastructure and ecosystem for EVs, which is a welcome move,” Rajan Wadhera, President, SIAM, said.

While the details of the scheme will be known shortly, the announcement of the scheme, in itself, is a major milestone and augurs positively for ushering clean and sustainable mobility in the country which the industry and SIAM will fully support, he said.

Also, the extension of the scheme will instil confidence in the auto and component industry, while taking long-term investment decisions in EV development and manufacture, with minimum risk, Wadhera added.

According to Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles, the support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally.

Ayush Lohia, Chief Executive Officer, Lohia Auto, said that the subsidy will make two- and three-wheeler electric vehicles very attractive to customers as it will bring down costs vis-a-vis petrol vehicles.

Published on March 01, 2019
This article is closed for comments.
Please Email the Editor