New Delhi: Government subsidies aided the smoother acceptance of Electric Vehicles (EVs) in India by helping the OEMs make them affordable for the buyers. But the recent subsidy reduction is said to be dampening the EV sales growth.
In the interim budget 2024, the Union Finance Minister Nirmala Sitaraman has not given any indication of a FAME III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Policy. Not only that, the budget allocation for FAME is reduced by 44% to INR 2,671 crore for the revised estimate for FY24. The allocated fund for FAME in FY 24 was INR 5,172 crore later re-estimated it to be INR 4,807.4 crore.
