FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) program ended on March 31, 2024.

The government’s new Electric Mobility Promotion Scheme 2024 (EMPS 2024) has come into effect from April 1, as the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) program ends on March 31, 2024.

The EMPS 2024 scheme was introduced earlier this year, with the aim of accelerating the adoption of EVs in the country. Under the new scheme, the government will provide subsidies for electric 2-wheelers and 3-wheelers.

Under the new scheme, the government will support up to 3.33 lakh electric 2-wheeler buyers with a subsidy of up to Rs 10,000. 41,000 e-rickshaw and e-cart customers will get a subsidy of up to Rs 25,000. The government will also provide financial support of up to Rs 50,000 for large 3-wheelers.

With the EMPS 2024 scheme, the government aims to support 3,72,215 EVs. The budget outlay for the scheme is Rs 500 crore and will be effective until July 31, 2024.

Source: ET

The articles also claimed that an additional Rs 500 crore had been allocated to cover subsidies.

Recently, there were reports claiming that the government had extended the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme by 4 months. The Ministry of Heavy Industries has now issued an official statement denying these reports and has clarified that there are no plans to extend the scheme beyond March 31, 2024.

It was reported that the government had granted a 4-month extension to the FAME-II scheme till July 31. The articles also claimed that an additional Rs 500 crore had been allocated to cover subsidies for electric 2-wheelers and 3-wheelers.

The ministry, in its statement, said that the second phase of the scheme to promote the adoption of EVs in India was fund and term-limited.

While proposals for FAME-III have been submitted, its rollout is said to have been delayed due to the upcoming general elections. Reports suggest that the new scheme could get approval once the elections are over.

Source: ET Auto

FAME-II was introduced in 2019 for a period of 3 years, with a budget outlay of Rs 10,000 crore.

The government of India has extended the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme until July 31, 2024. The scheme was initially set to expire on March 31.

The government has allocated an additional Rs 500 crore to cover subsidies for electric 2-wheelers and 3-wheelers. Media reports suggest that the extension aims to prevent disruptions in the EV sector.

The rollout of the FAME-III scheme has been delayed due to the upcoming general elections. The new scheme is expected to get approval only after the elections are over.

FAME-II was introduced in 2019 for a period of 3 years, with a budget outlay of Rs 10,000 crore. In the initial phases, the government provided subsidies for 7,000 electric buses, 5 lakh electric 3-wheelers, 55,000 electric cars and 10 lakh electric 2-wheelers.

Source: CNBC-TV18

It is estimated that FICCI’s proposed FAME III scheme would require an outlay of over Rs 30,000 crore over the next 5 years.

According to media reports, the government of India is considering the extension of the FAME II scheme for manufacturing electric vehicles till 2025.

There have been talks of a revised framework under FAME III as proposed by the Federation of India Chambers of Commerce and Industry (FICCI). However, if the latest reports are anything to go by, possibilities are being explored to extend the current edition till a new supporting framework is put in place.

It is said that additional resources could be allotted in the interim budget, but not before the finance ministry’s approval. It is estimated that FICCI’s proposed FAME III scheme would require an outlay of over Rs 30,000 crore over the next 5 years. But, folks in the government are of the view that electric 2-wheeler makers are the largest beneficiaries of the FAME scheme and do not require government support anymore. Instead, investment should be made to develop the ecosystem to support e-mobility.

As per the latest reports, the government has disbursed Rs 5,228 crore in subsidies till December 1, 2023 and has sanctioned Rs 800 crore to IOCL, BPCL and HPCL for setting up 7,500 fast-charging stations across the country.

Source: ET Auto

The govt. is looking at a new scheme to encourage high-end electric car makers like Tesla to manufacture in India.

According to media reports, the government is not keen on introducing the third phase of the "Faster Adoption and Manufacturing of Electric Vehicles" or FAME III. As a result, the subsidy on electric 2-wheelers could end in the coming weeks.

The report states that the finance ministry has opposed the proposal submitted by the heavy industries ministry. The government expects the transition to cleaner-fuel vehicles to happen naturally despite the higher capital cost.

The government had allocated Rs 10,000 crore for the FAME II scheme, which will end in the next few weeks. Around 10 lakh 2-wheelers are expected to benefit from this scheme.

The government is now looking at a new scheme to encourage high-end electric car makers like Tesla to manufacture in India. It could be similar to the production-linked incentive (PLI) scheme.

Source: ET Auto

The govt. has sought Rs 469 crore from Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.

Several electric 2-wheeler manufacturers, including Hero Electric and Okinawa, want their customers to refund the excess rebate availed by them when purchasing the vehicles.

The EV makers, represented by the Society of Manufacturers of Electric Vehicles (SMEV) have submitted a letter to M N Pandey, Minister of Heavy Industries, urging him to look into the possibility of asking customers to return the subsidies to the OEMs.

Sanjay Kaul, Chief Evangelist, SMEV, argued that the money currently demanded from OEMs for non-compliance can be recovered from customers and returned to the government just like in the case of some OEMs over-charging customers were asked to return the amounts. He added that if a customer has received a discount over and above the correct price, it would be incumbent on him / her to return the excess amount.

To facilitate this, OEMs are willing to share customer data with the ministry. The companies are also open to issuing a Public Notice asking customers to deposit back the excess rebates they had received as subsidies.

The government has sought Rs 469 crore from seven electric 2-wheeler makers for wrongfully claiming subsidies under the FAME II scheme. These include Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.

Source: ET Auto

Existing fleet vehicles must be retrofitted with electric powertrains by June 2024.

The government of Goa has announced that all new tourist vehicles, that includes rental cars and bikes must be electric from January 2024. Besides, existing fleet vehicles must be retrofitted with electric powertrains by June 2024.

Speaking at the Energy Transitions Working Group Meeting, Pramod Sawant, Chief Minister of Goa, said, "All new tourist vehicles, cab and bike rentals shall be EVs from January 2024, while new government light motor vehicles (LMVs) purchased from January 2024 will mandatorily be EVs. It will also be mandatory for permit holders having multiple tourist taxis, rent a bike and rent a cab operator to retrofit 30 per cent of the fleet to EV by June 2024.”

Sawant added that EV ownership in the state has increased from 0.2% to 9.4% since subsidies were introduced in 2021. The state also plans to roll out new subsidies at a time when the central government has slashed the sops offered under the FAME II scheme.

Source: Autocar

The FAME III scheme is likely to cover alternative fuels like hydrogen.

According to a media report, the government of India is working on the next phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME III) scheme. Besides EVs, the new scheme is likely to cover alternative fuels as well.

The FAME scheme was introduced to promote manufacturing and sales of electric vehicles in the country. In the first phase, the focus was on electric 2-wheelers, wherein the government offered a 40% subsidy on the selling price.

Under FAME II, the subsidy on electric 2-wheelers was slashed to 15%. As per the latest reports, the third phase could see the inclusion of alternative fuels, such as hydrogen. It is also said that the government could offer enhanced support for electric 3-wheelers while reducing the subsidy on electric 2-wheelers.

The government is yet to formulate the FAME III scheme and is in the process of collecting additional inputs from industry stakeholders.

Source: ET Auto

Ather Energy registered a 35-40% drop in sales compared with the previous month.

The government recently slashed the FAME 2 subsidy on electric vehicles, resulting in a steep hike in the prices of electric 2-wheelers. This has also been reflected in sales as Vahan data shows e-scooter registrations hit a 16-month low in June 2023.

Higher prices have kept customers away from e-scooter showrooms. As per the Vahan vehicle registration portal, 35,461 units were sold till June 27. Electric 2-wheeler sales fell to 1,363 units per day from 3,391 units/day in May.

Adjusted for the remaining four days, the June sales volume is estimated to be around 40,000 to 40,500 units. That's a month-on-month decline of 61%.

Despite the recent trends, the industry seems optimistic about the future. Ather Energy registered a 35-40% drop in sales compared with the previous month. However, chief business officer, Ravneet Phokela expects sales to pick up next month.

Source: ET Auto

The government has sent notices to seven EV makers to recover nearly Rs 500 crore.

The Government of India is planning to penalize electric scooter manufacturers that have been found guilty of wrongfully claiming subsidies under the FAME II scheme.

According to a media report, the government is considering several measures, including banning these companies from availing subsidies in the future as well as blocking the subsidy on vehicles sold over the last 15 months. It is said that the Ministry of Heavy Industries would discuss this with other departments of the government before finalizing the penalties as it would have an impact on investments.

Earlier, the government sent notices to seven EV makers including Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Lohia Auto and AMO Mobility to recover nearly Rs 500 crore. The centre had also suspended subsidy disbursal of Rs 1,400 crore to 13 companies that were being investigated by the ARAI.

Meanwhile, companies that have been cleared of any wrongdoing should receive a subsidy by the end of this month. According to a government official Rs 200 crore has already been paid and the pending claims would be cleared by month's end.

Source: ET Auto