CEO, Altigreen Propulsion Labs
India has envisioned a clear road map for a major transformation to electric vehicles (EVs) by 2030. The government’s keenness to eliminate the pre-existing roadblocks by making swift policy changes for sustainable mobility is encouraging growth in the segment. Announced in March 2019, Faster Adoption and Manufacturing of Electric Vehicles in India II (FAME II) scheme not only provided the much-needed assistance to the EV sector but also instilled confidence in manufacturers to compete with the fossil-fuel based Internal Combustion Engine (ICE) counterparts that are comparatively cheaper and popular among buyers.
However, despite multiple endeavours, the uphill climb was marred by a global pandemic and only Rs 500 crore of the allocated Rs 10,000 crore under the scheme could be spent. Furthermore, only 58,613 electric 2Ws have been sold under the scheme against a targeted 10 lakh units by March 2022. At this juncture, the government's move to extend the FAME II scheme by two years comes as a beacon of hope that will definitely expedite the adoption of EVs in India by taking advantage of the untapped potential.