By Priya Singh
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Updated On: 05-Mar-2024 01:19 PM
Discover how you can save big on your electric three-wheeler purchase with government subsidies up to INR 1.1 Lakhs before March 31st! Don't miss out on this limited-time opportunity for significant savings. Learn more in our article.
For a while, people have been talking a lot about the electric vehicle (EV) industry and a subsidy program called FAME II (Faster Adoption and Manufacturing of Electric Vehicles). This subsidy is set to end on March 31, 2024.
EV manufacturers and buyers were hoping for a new program called FAME III, but instead, the government decided to add an extra ₹1,500 crore to the second phase of FAME-II.
Electric three-wheeler manufacturers are currently facing a challenge as they confront an excess inventory of unsold vehicles with the approaching end of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) II subsidy scheme on March 31st.
To address this issue, they have launched heavy discount offers in an attempt to clear the inventory before the subsidy deadline, demonstrating the urgency of not missing out on subsidy benefits. With this addition, if you buy a three-wheeler electric vehicle, you could save up to ₹1.1 lakh, which is one of the biggest subsidies yet.
India's push towards electric mobility has been gaining momentum in recent years, with the government implementing various schemes and incentives to encourage the adoption of electric vehicles (EVs).
One such initiative is the Faster Adoption and Manufacture of Electric Vehicles (FAME) II scheme, aimed at promoting the use of electric vehicles across the country.
To get the FAME subsidy for buying an electric vehicle (EV), you don't need to do anything special. The subsidy is automatically included in the price of the EV you see at the showroom.
When you ask for a price quote from an EV dealer, it will already include the subsidy. But it's a good idea to double-check the quote and make sure the subsidy is included. That way, you can be sure you're getting the benefit of the subsidy.
FAME-II is a program introduced by the Ministry of Heavy Industries. It stands for Faster Adoption and Manufacturing of Electric Vehicles - Phase II. It began on April 1, 2019, and lasts for five years.
FAME-II is all about making electric vehicles more popular and accessible. It offers incentives for different types of electric vehicles and works on building more charging stations. This way, more people can switch to electric vehicles, which is good for the environment and helps reduce pollution.
Also Read: The Future of Electric Commercial Vehicles
The main goal of FAME-II is to encourage the use of electric vehicles in public and shared transportation. It wants to make it easier for people to choose electric vehicles over traditional ones.
Under FAME-II, there are incentives to help people buy electric vehicles. These incentives apply to different types of vehicles:
1. Electric Buses: There's support for 7,090 electric buses. These are for public transportation, like city buses.
2. Electric-3 Wheelers: FAME-II offers help for 5 lakh electric three-wheelers. These are commonly used for short trips or as taxis.
3. Electric-4 Wheeler Passenger Cars: The program aims to support 55,000 electric four-wheeler passenger cars. These are regular cars for personal use.
4. Electric-2 Wheelers: FAME-II also plans to assist with 10 lakh electric two-wheelers. These include electric scooters and motorcycles.
One important part of using electric vehicles is having places to charge them. FAME-II also focuses on building more charging stations. This way, people can charge their electric vehicles easily and conveniently.
The government has decided to allocate more money for subsidies on electric vehicles (EVs) like bikes, scooters, three-wheeler, and cars. This extra money will be used to give discounts to people who buy EVs.
This subsidy program will continue until March 31, 2024, or until all the money is used up, whichever happens first. The government has increased the total amount of money available for these subsidies from INR 10,000 Cr to INR 11,500 Cr.
Here's how the extra money will be divided among different types of electric vehicles:
In total, INR 7,048 Crore will be allocated for subsidies on these vehicles. Additionally, money will be set aside for other types of electric vehicles:
Overall, the government is increasing the funds available for subsidies on electric vehicles, which could make buying an electric vehicle more affordable for people.
With a total budget allocation of ₹11,500 crore, the government aims to boost the adoption of electric vehicles and accelerate the transition towards a greener and more sustainable transportation system.
As you can see, the government has set aside specific funds for each category of electric vehicles. If you're considering buying an electric three-wheeler before March 31st, you stand to receive a subsidy of up to INR 1.1 lakhs, which is among the highest subsidies offered so far! This subsidy could significantly reduce the cost of purchasing an electric three-wheeler for you.
Now, let's take a look at the current situation: As of February 2024, electric vehicle manufacturers had sold a total of 13,63,266 electric vehicles under the FAME-II scheme, amounting to a total of INR 5,854 Crore.
This update was provided by Union Minister Krishan Pal Gurjar during a Lok Sabha session, shedding light on the impact of the scheme on the market.
These numbers indicate a growing interest and uptake of electric vehicles, showcasing the effectiveness of the government's initiatives in promoting eco-friendly transportation options.
Also Read: Electric Vehicles Incentives and Policies in India
The extension of the FAME-II subsidy program comes as a significant boost for India's electric vehicle industry. Here's why:
Encouraging Adoption: By offering substantial subsidies on electric vehicles, the government aims to encourage more people to switch from traditional vehicles to electric ones.
The increased subsidy on three-wheeler electric vehicles is particularly noteworthy as three-wheelers are extensively used for commercial purposes, potentially leading to a significant reduction in emissions.
Supporting Infrastructure Development: FAME-II not only provides incentives for the purchase of electric vehicles but also emphasizes the development of charging infrastructure. This is crucial for addressing the range anxiety among consumers and facilitating the widespread adoption of electric vehicles across the country.
Boosting Economic Growth: The extension of FAME-II and the additional funds allocated to it signal the government's commitment to supporting the growth of the electric vehicle industry.
This industry holds immense potential for generating employment, attracting investments, and contributing to the country's economic development.
Environmental Benefits: Electric vehicles are much cleaner than their gasoline or diesel counterparts, leading to a reduction in air pollution and greenhouse gas emissions.
By promoting the adoption of electric vehicles through schemes like FAME-II, the government is taking proactive steps towards achieving its environmental goals and combating climate change.
CMV360 Says
In simple terms, the government is putting more money into FAME-II to support eco-friendly transportation in India. This could be your best chance to take advantage of the benefits it offers.
At cmv360, we've made buying commercial electric vehicles (EVs) easier by offering everything you need in one spot. If you want to know more about the incentives the government offers for electric vehicles or if you're interested in buying a cargo or passenger electric three-wheeler, just get in touch with cmv360. We're here to help!