The love that Indians possess for two-wheelers is enormous and the fact that India has become the largest manufacturer of two-wheelers in the world proves it. Millions of Indians prefer two-wheelers as their ideal mode of transportation because of their affordability and maneuverability. However, another segment in this expansive two-wheeler market is slowly gaining popularity with every passing day. That segment is the electric two-wheeler segment.
Recently, the heavy industries ministry revealed that the sales of electric two-wheelers in the nation have increased to more than 5,000 units per week from 700 units a week. The ministry accredited this milestone to the remodelling of the FAME-II scheme which was executed earlier in June this year.
The Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme underwent a revision in June to enter its phase II after receiving feedback from the industry and users of their experience, particularly during the COVID-19 pandemic. Under this scheme, the government outlaid a fund of Rs 10,000 crore to incentivize the demand for electric vehicles. The scheme is designed to support the electrification of public and shared transport and help create a charging infrastructure.
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The government of India is pushing towards the electrification of the automotive sector to combat the issues of vehicular emissions and dependence on fossil fuels. The allocated funds under the FAME-II scheme will subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.
The ministry of heavy industries (MHI) in its year-end review stated, “In the calendar year 2021, a total of 1.4 lakh electric vehicles (1.19 lakh electric two-wheelers, 20,420 electric three-wheelers and 580 electric four-wheelers) have been incentivized upto 16 December 2021 amounting to an incentive of about ₹500 crore under Phase-11 of Fame. A total of 1.85 lakh electric vehicles have been incentivized under Fame II till now,”
The MHI added, “Allocation of ₹1000 crore has also been made under FAME II for provision of EV charging stations. FAME India II Scheme was redesigned in June 2021 based on experience particularly during Covid-19 pandemic and feedback from industry and users. The redesigned scheme aims at faster proliferation of Electric Vehicles by lowering the upfront costs.”
The first phase of the FAME scheme was initiated on the 1st of April 2015 and it extended till 31st of March 2019. While the second phase (Fame-2) that began on 1st April 2019 was intended to end on 31 March 2022. However, the central government is planning to extend its ambitious scheme to promote electric mobility by two more years till 31 March 2024.
2021 was the year of electric two-wheelers and some of the best EV scooters that launched this year were the Ola S1 and S1 Pro, Simple One, Bounce Infinity, EeVe Soul and the eBikeGo Rugged. In addition, Hero Electric became India’s highest-selling EV two-wheeler brand, it sold more than 65,000 electric scooters in 2021. While Ola, Aether Energy, Okinawa Autotech Pvt. Ltd., Ampere Vehicles and Revolt Motors are also some of the honourable mentions of this EV two-wheeler segment.
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