Exploring FAME extension and battery decoupling for E2W competitiveness

The government is in consultation with the industry to explore the extension of FAME or prolong its benefits, Hanif Qureshi, Joint Secretary of the Union Ministry of Heavy Industries, said on Friday amid a growing debate among industry experts on the strategic measures needed to ensure the continued competitiveness of electric vehicles (EVs).

- NIVEDITA MUKHERJEE

The recent announcement by the Ministry of Heavy Industries regarding subsidy reductions for electric two-wheelers under the FAMEII scheme has sparked discussions among industry experts who are now advocating for the decoupling of battery packs from the vehicles themselves, recognising its potential to enhance cost competitiveness and drive EV adoption. The electric two-wheeler segment, which accounts for 55 percent of India’s entire EV industry, is facing significant pressure to reduce the cost of electric scooters. The impact of subsidy reduction on EVs is particularly pronounced in this segment, as buyers have limited purchasing power and may opt for petrol-driven two-wheelers given the circumstances.