[ChiragM]

According to a media report, the sales of e-bikes fell from around 6,000 units in March to almost nil in April. Sales in May is expected to be in the hundreds and it could pick up pace only in August.



The report suggests that the reason for the fall in sales is the new FAME-II scheme, as the new rules require re-certification of all existing vehicles. The scheme came into effect on April 1, 2019, but the OEMs were informed of the re-certification only in March 2019. It is claimed that the certification process takes 2-3 months and all manufacturers should meet 50% localization to avail a subsidy. It is also claimed that only 3 models were certified by the end of April.

Some manufacturers claim that they have not been given enough time to prepare. Batteries, motors and controllers for electric vehicles are imported and they account for more than 50% of the price of the vehicle. They claim that localization is difficult considering the number of electric two-wheelers sold. It is reported that annual volumes should reach 1 million units for vendors to sell at competitive prices.

The report also suggests that the price of electric two-wheelers under the new scheme could increase by Rs. 10,000 to Rs. 12,000, which would further pull down sales. While the vehicles were getting a subsidy of Rs. 22,000 under FAME I, the subsidy is expected to be Rs. 10,000 per kWh under the new scheme. In comparison, buses get a subsidy of Rs. 20,000 per kWh under FAME II.

Even without the difficulties of FAME II, only 1,26,000 electric two-wheelers were sold in the last financial year. The government intends to sell a million vehicles in the next three years.

Link to Team-BHP News

Source: Economic Times

[CrAzY dRiVeR]

Not a surprise! Companies like Ather had officially announced that they were suspending deliveries till they receive further clarifications on FAME II subsidies.

all manufacturers should meet 50% localization to avail a subsidy

That said, this might be a good move. The Chinese market, in particular, has become very competent when it comes to electric scooters and motorbikes, and it wouldn't be fair if they receive subsidies without localization.

[tarik.arora]

Localisation target is surely a good move from the government but the OEMs should have been given some time to plan, at least an year IMO. Motor, controller and batteries easily account for more than 50% of the vehicle cost and we are yet not there when it comes to local sourcing of these components.

[GTO]

On a related note, this just came in:

Okinawa Scooters, a rapidly growing 100% Indian electric two-wheeler manufacturing company has become the first manufacturer to be eligible for FAME-II approval & the incentivization on their electric two-wheelers. The company has received certificate of eligibility from Automotive Research Association of India (ARAI), the prime Testing and Certification Agency notified by Government of India for its Lithium-ion products – Okinawa I-Praise and Okinawa Ridge+.

“With eligibility under Fame-II, our customers will be able to enjoy standard subsidy depending upon the model battery kwh. For Okinawa Ridge+ & i-Praise the subsidy would be between Rs 17000 – Rs 26000 based on KWH. We are confident that this will motivate more environment conscious customers to become a part of the Okinawa family to enjoy not only the benefits of e-scooters but also the advanced features offered in the Okinawa range. ” said Mr. Jeetender Sharma, Founder & Managing Director, Okinawa Autotech Pvt. Ltd.

“Our vision has always been aligned with the Government of India. With the thought process to provide the consumer with the ‘Make in India’ product we started working initially on localization of our electric two-wheeler components which helped us in getting the FAME-II approval. Our vision stands validated today and we would like to thank Government for setting parameters that enable the Indian consumers to get high quality products that are made in India,” added Mr. Jeetender Sharma.

FAME-II which is an ambitious government plan to promote ‘Make In India’, Government’s vision of strengthening the electric vehicle eco-system & look forward to the conducive policy keeping in mind the concerns & expectation of the industry for which they require the electric vehicle makers to have 50% local content in e-vehicles if they want to avail the incentive. The OEMs to gain eligibility certificate for facilitating registration of their vehicles under FAME-II, the testing agencies have to ensure compliance of Phased Manufacturing Programme (PMP) as per guidelines of Department of Heavy Industry/ Government of India.

With this testing, Okinawa products have met all the government parameters of having a speed of around 40km/h, range of about 80 km/charge, 50% Localization & incentivizing on the Li-ion battery capacity. This government clearance for Okinawa products marks a bold stance in the EV industry showing that they firmly believe in MAKE IN INDIA Product.

[devarshi84]

Most e-scooter manufacturers are either importing parts from China or using substandard quality parts.

Ather and Twenty two have made a lot of noise around the gadgets installed on their scooters but their technology is still not practical enough to beat petrol scooters for sales and price.

Only okinawa has been fast to implement FAME II and their scooters can reach a range of 160kms which is an ideal range of a petrol scooter. Most people are also put off by the fact that a battery change will mean huge expenses.

Crude is a big business for governments globally and hence electric vehicles have not been able to sustain sales since Chevrolet launched the EV1. The case is the same in India.

A mahindra E2O costs 8+ lacs in Ahmedabad. The range is 100kms at best. How does this make any sense for a new buyer?

[sreeharipv]

Since Okinawa got approval, it should't be very long before everyone else gets approval. Okinawa as far as I understand is importing parts from China and assembling in India.

[TusharK]

Ather 450 gets FAME-II approval

Ather Energy has announced that its Ather 450 electric scooter has received FAME-II approval and will therefore receive an increased subsidy of Rs. 27,000. The revised on-road price of the Ather 450 in Bangalore is Rs. 1,23,230.



The company had halted deliveries so that the new subsidy could be passed on to the customers. Customers can expect their scooters being delivered in the next couple of weeks.

The Ather 450 is powered by a Brushless DC electric motor (BLDC) that produces 7.2 BHP and 20.5 Nm of torque and comes equipped with a 2.4 kWh lithium-ion battery that is claimed to offer a maximum range of 107 km.

Last month, Ather Energy announced plans to launch its e-scooters in Chennai in June 2019.

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