In India, the move towards electric mobility has recently been underlined by Niti Aayog’s announcement to go all-electric by 2030. Complementing this initiative is the Faster Adoption and Manufacturing of Electric vehicles (FAME) scheme, which intends to offer significant financial and infrastructure-related incentives to the automobile industry in having an operational eco-system in place for complete electrification.
The FAME India Scheme was implemented from 1st April 2015, with the objective to support hybrid/electric vehicles’ market development and the manufacturing eco-system. The first phase of the scheme, which came to an end last month, has helped with the sale of 45,000 EVs till March 2017. Out of the total units sold, two-wheelers accounted for a sizeable chunk of 40,000 units and the remaining 5,000 units comprised electric cars.
HARNESSING INHERENT POTENTIAL
The auto sector believes that electric mobility has massive potential and is pinning its hopes on early strategic changes in policy, which would push wider adoption of e-mobility. The Union Cabinet intends to take a call on the issue soon and Niti Aayog has estimated that India can save up to 64 % of its energy demand for road transportation and reduce carbon emissions by 37 % by 2030, if it works towards an electric mobility future.
However, the Society of Manufacturers of Electric Vehicles (SMEV) has recently raised concerns regarding confusion over the continuity of the government’s incentives to promote e-vehicles under FAME 1. Commenting on the current predicament, Sohinder Gill, Corporate Director, SMEV, and CEO, Hero Electric, said, “The recent news that the electric vehicle mission has been moved from DHI to NITI Aayog came to us a surprise, and has led to confusion and uncertainty on the fate and the timing of FAME 2.”
Reinstating the industry’s urgent need for clarity, Gill added, “The industry is seeking assurance from the government on continuity in the EV mission and that the tapering or withdrawals of initiatives should be forewarned at least a year in advance, so that the industry can adjust its business plans accordingly.”
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