Electric three-wheeler manufacturers are said to have approached the Ministry of Heavy Industries (MHI) to request a 50% increase in subsidies under phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) programme, which aims to promote the adoption of electric vehicles (EVs) in the country.
According to industry executives, electric three-wheeler manufacturers want a subsidy of at least INR 15,000 per kWh battery size on the vehicles they sell, up from the current INR 10,000 per kWh.
It should be noted that under FAME-II, electric two-wheeler manufacturers can currently receive subsidies of INR 15,000 per kWh, with a 40% cap on vehicle costs. According to a senior government official, several industry bodies have made representations to the MHI regarding this demand. The ministry has also organised a stakeholder consultation on the subject and is currently reviewing the request.
Meanwhile, an industry executive told that a study on the impact of a higher subsidy on the sector had been conducted, and the findings had been submitted to the MHI, which is evaluating the study. The FAME-II scheme, with a total investment of INR 10,000 Cr, aims to support 5 lakh electric three-wheelers, 10 lakh electric two-wheelers, and other EV categories through demand incentives.
According to the most recent government data, 8.8 lakh EVs have been supported under the FAME-II scheme through February 15, 2023, including 81,172 electric three-wheelers. Meanwhile, the scheme will subsidise 7.1 lakh two-wheeler EVs by the end of 2022.
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