ELECTRIC VEHICLES: FICCI SUBMITS PROPOSAL FOR FAME III

Over 30 million Electric Vehicles Adoption Can Be Supported by FAME IIT in next 5 years

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Emphasizing the need for enabling upfront near price parity for Electric Vehicles vis a vis ICE vehicle, to help increase the adoption of EVs over the next few years, FICCI has submitted its proposal to Ministry of Heavy Industries, Govt of India for continuation of FAME scheme for next 5 years, with a review at the end of 3 years. The time period for the current FAME II scheme is till March 2024.

Sudden withdrawal or discontinuation of upfront price incentives will lead to up to 25% price increase of EVS and this may derail EV adoption momentum substantially, also impacting further investments in EV sector, and disrupting gains made so far, noted FICCI. Purchase incentives on EV Vehicles are being continued in markets like Canada, US, Korea, etc. to achieve their electrification ambitions and India cannot be left behind and miss the EV bus.

EV penetration in India is only 5% currently. It is imperative to continue FAME scheme to achieve critical mass towards reaching overall 30% EV penetration targets by 2030, stated by Government of India and to also help meet 'Panchamrit' / Net Zero climate action goals of India.

Based on the input received from its wide base of members comprising of various stakeholders from the EV sector, FICCI EV Committee has estimated that if demand incentives as suggested are provided for the next five years, it could support adoption of 30.5 million electric vehicles across segments in next 5 years and help achieve the target of 30% electrification of India's transport sector.