Electric Vehicle Subsidies

Fame II electric vehicle subsidies get Rs. 1500 crores boost

The Ministry of Heavy Industries (MHI) has made a significant announcement regarding the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) subsidies for electric vehicle in India, injecting an additional Rs. 1500 crores into the program. This boost increases the total outlay from Rs. 10,000 crores to Rs. 11,500 crores, aiming to further promote clean mobility in the country.

Under this enhancement, subsidies for electric vehicles will be applicable until 31st March, 2024, or until the funds are exhausted, whichever comes first.

The revised outlay of Rs. 11,500 crores comprises Rs. 7048 crores for vehicle subsidies, Rs. 4048 crores for capital asset creation grants and Rs. 400 crores for other initiatives. The FAME II scheme, which was initially allocated Rs. 10,000 crores over three years until 2022, has been extended to March 2024 to further support the electric vehicle ecosystem.

Originally, the FAME II scheme aimed to bolster the adoption of 10 lakh electric two-wheelers, 5 lakh electric three-wheelers, 55,000 passenger cars and 7000 electric buses.

The total sales of electric vehicles witnessed a remarkable increase in 2023, reaching 1.53 million units compared to 1.02 million in 2022, indicating a significant growth trajectory in EV adoption.

Let us know your thoughts on this move by the government. Do you think electric vehicles are the future in the Indian market or hybrid vehicles? Tell us in the comments section below.