Saar: The scheme has a budget of around Rs 5,500 crores, which will span over fives years to give subsidy support to all kinds of pure-electric vehicles.
An overview of the second phase of Faster Adoption and Manufacturing of Electric vehicles (FAME) scheme has been finalised. Its roadmap has been carved out with a budget of around Rs 5,500 crore, which will span over fives years. Once implemented, the FAME II scheme will provide subsidies to all types of pure-electric vehicles (EVs). However, this time around, there will be no subsidies on offer for strong hybrid vehicles. That’s a bummer!
The decision makers have unanimously nodded in favour of giving tax reliefs to all categories of EVs, including two-, three- and four-wheelers. The scheme will also cover taxis and electric buses which do not produce any kind of harmful emissions from their power-plants. Although it isn’t mentioned, hydrogen-powered vehicles, or Fuel-Cell EVs, will also attract the subsidies under FAME II. The panel is yet to reveal the subsidy range for all kinds of pure EVs.
The first FAME scheme, which is still live, offers varied incentives on the purchase of strong hybrid and electric cars, two-wheelers and thee-wheelers. All automotive manufacturers that sell pure electric vehicles in any of the aforementioned categories claim the total incentive from the government at the end of each month. The FAME scheme came into effect in the year 2015. It received an extension until September this year or until the second phase is approved.
The second phase of the FAME scheme brings good news for pure EV sellers in the country. However, it seems like the end of the road for strong hybrid cars in India. Without the government’s support and the huge import taxes, all those dual-engine models will become way too expensive in India. There are several strong hybrids currently on sale in India, including all Lexus models except the LX SUV, Toyota Camry and the Volvo XC90 T8 Excellence. While Lexus has no other option but to increase the prices of its hybrids, the Camry could soon be permanently axed from Toyota’s Indian portfolio.
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