FAME-II will help commit investments in EV: Auto industry

Automobile industry players Friday said the government's announcement of Rs 10,000-crore FAME-II scheme brings clarity and policy stability, and will provide a big fillip to popularisation of electric vehicles in India.

Industry bodies SIAM, SMEV, along with companies like Mahindra & Mahindra and Tata Motors, lauded the phase-II of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) saying it will create an environment for all players to commit investments on the journey of sustainability.

"This will provide a big fillip to our joint efforts to introduce higher levels of electric mobility in the country," Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said in a statement.

He further said the industry has been eagerly waiting for more than two years for announcement of a long-term policy, including finalisation of the FAME-II scheme.

The three-year scheme, with significantly enhanced financial allocations, will instill tremendous confidence in the auto as well as the component industry while making long-term investment decisions in electric vehicle (EV) development and manufacturing with minimum risk, he added.

Echoing similar sentiments, Society of Manufacturers of Electric Vehicles (SMEV) Director General Sohinder Gill said, "The support would encourage associated industry players to invest in the sector, which will further help in creating an ecosystem, locally."
While expressing support to the Central government's focus to boost EVs in public transportation, he also asked "local authorities to help facilitate plying of electric vehicles on Indian roads."