Electric two-wheeler sales fall as only 5 firms get FAME benefits

Many electric vehicles could not meet the eligibility criteria, thereby losing govt’s financial support

Electric two-wheeler sales fell sharply in the April-June quarter, with only five manufacturers getting subsidies under a revamped government scheme to promote green mobility.

Phase two of the subsidy scheme-FAME-India (faster adoption and manufacturing of electric vehicles in India)-has stricter localisation norms and is aimed at promoting domestic manufacturing of electric vehicles and components. The second phase, with an outlay of 10,000 crore, became effective from April 1 this yea r.

In the June quarter, only 1,700 electric two-wheelers manufactured under FAME-India were sold compared with 30,000 units in the corresponding period of the previous year, according to Society of Manufacturers of Electric Vehicles (SMEV). Ather Energy, Ampere, Okinawa, Jitendra Electric Vehicles, and Hero Electric are the five manufacturers which managed to get the eligibility certificate for the subsidy scheme, according to SMEV.

Under the first phase of the FAME-India scheme, 88 models of electric two-wheelers sold by 18 manufacturers were eligible for subsidy. A majority of these vehicles couldn’t meet the new criteria and thus lost financial support from the government.

 

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