New Delhi, Feb 11, 2024: The Government has reduced the Electric Vehicle (EV) subsidy per unit to 15% of the ex-factory price from 40% for E-2 Wheelers under FAME India Scheme Phase-II keeping in mind the increasing penetration of the EV market. This has been implemented after stakeholder’s consultation meetings with OEMs of e-2 Wheelers on 16.05.2023 and the approval of the Project Implementation and Sanctioning Committee (PISC) for FAME India Scheme Phase-II.
Further, as per the inputs received from Ministry of Road Transport and Highways, no slow-down has been observed in the sale of electric two wheelers in the country after subsidy reduction per unit to 15% of the ex-factory price from 40% for E-2 Wheelers under FAME India Scheme Phase-II.T
Under FAME-India Scheme phase-II, no incentive is given to electric vehicle manufacturers. The incentive/ concession is provided to consumers (buyers/end users) in the form of an upfront reduced purchase price of hybrid and electric vehicles to enable wider adoption, which are reimbursed to the OEM (EV manufacturers) by Government of India.
Further, following two Production Linked Incentive (PLI) Schemes are being implemented by the Ministry of Heavy Industries for manufacturers to boost manufacturing of electric vehicles in India and increasing in Export:
- The Government on 12thMay, 2021 approved Production Linked Incentive (PLI) scheme, ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’ in order to promote manufacturing in the country. The budgetary outlay of the scheme is Rs. 18,100 crores. The scheme envisages to establish a cumulative ACC battery manufacturing capacity of 50 GWh.
- Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry was approved on 15thSeptember, 2021 with a budgetary outlay of Rs. 25,938 crore, which provides financial incentives to boost domestic manufacturing of Advance Automotive Technologies (AAT) products (including electric vehicles and their components).
This information was given by the Minister of State for Heavy Industries, Krishan Pal Gurjar, in a written reply in Rajya Sabha on Feb 09, 2024.
