Do EV firms need more FAME?
As the curtains come down on the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme, the debate within the government and industry is whether it should be extended in its current format to FAME III. The efficacy of the scheme is not in doubt, it has delivered. However, opinions vary on every aspect of the scheme.
The aim of FAME II was to drive EV sales by offering subsidies since EVs are relatively more expensive than internal combustion engine (ICE) vehicles and hence cannot be price warriors. FAME-II, which has an outlay of Rs 10,000 crore, has so far subsidised more than one million two-wheelers, about 150,000 three-wheelers, and 17,000 odd public transport four-wheelers. Subsidies range between 15–25% across segments.
