Nearly 80% of targetted 1 mn e-two-wheelers sponsored under FAME so far

In the eleven months of FY23, some 649,000 E2Ws were sold at an average of 59,000 units a month. E2W made up more than 60% of the overall 1.04 million EVs sold so far

The Centre’s flagship electric vehicles (EV) promotion scheme — Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) — has so far disbursed subsidies to around 80 per cent electric two-wheelers of the set target under the scheme. 

The government had set a target of supporting one million two-wheelers under the scheme by March 2024.

According to data from the ministry of heavy industries, 792,529 vehicles have been sold under the scheme till February 15, 2023. The government aims to support the remaining 200,000 vehicles within the stipulated time.

“Our electric two-wheeler sales would cross 800,000 this financial year. Given the pace of electric two-wheeler (e2W) sales in the country, we are confident that we will achieve the remaining target,” a senior government official said. 

In the 11 months of FY23 — with an average sales of 59,000 units per month — 649,000 e2Ws were sold. e2Ws constituted more than 60 per cent of the overall 10,41,000 (over one million) EVs sold so far. 

The government is confident of achieving the target, despite the halt on subsidies of Okinawa Scooters and Hero Electric along with a few more small players.

“Subsidies are on halt for just a few players. More than 45 players are still getting the subsidy and majority of them are E2W manufacturers,” the official said. 
 

Subsidies worth Rs 1,100 crore — meant for promoting electric vehicles in the country — have been blocked by the Centre. This comes after it was alleged that manufacturers are not adhering to localisation norms. 
 

Of the 64 OEMs registered under FAME-II so far, at least 17 have been debarred from seeking subsidies, according to data available on the MHI website. Of the 17 barred OEMs, 6 manufacture two wheelers.  
 

The government provides an incentive of Rs 15,000 per kWh on electric two-wheelers, capped at 40 per cent of the total vehicle cost, provided they meet specified localisation criteria.

The subsidy for EV makers ranges between Rs 17,000 and Rs 66,000 per electric two-wheeler. Since the launch of FAME-II in April 2019, around 975,000 e2Ws were sold till March 4, 2023. Of this, around 65 per cent vehicles were sold in the current financial year. 

The scheme is implemented for five years with a total budgetary support of Rs 10,000 crore. 
 

The government had nearly doubled the allocation for FAME-II in the Budget for the next fiscal year to Rs 5,172 crore. Under FAME-II, the Centre has so far spent Rs 3,889.94 crore.
 

FAME-II primarily focuses on supporting electrification of public and shared transportation.

And, apart from E2Ws, it also aims to support through demand incentive 7,090 buses, half a million three-wheelers and 55,000 passenger cars. 

“Not just two-wheelers, we are also pushing state governments to place more orders for electric buses,” a senior official from the ministry said. 

The ministry has set a target of deploying around 3,000 buses by the end of this calendar year.

The deployment of e-buses by states under the plan stands at just 34 per cent (2,435) of the target.