The electric vehicle industry has welcomed the Indian Government’s move to increase subsidy to electric bikes and scooters by 50%, subject to those that meet the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) criteria. The amendments to the FAME-II electric vehicle policy was rolled out on June 11, 2021. Here are some of the views expressed by leading leaders in this industry:
NEXZU MOBILITY: Pankaj Tiwari, Chief Marketing Officer, Nexzu Mobility, said this step “is a welcome stimulus which will boost adoption and encourage research & development and innovation for enhanced customer experience. The development will surely provide a fillip to Indian EV companies to manufacture the finest, electric high speed mobility solutions. It will also help firms to boost the growth of EV space across the nation. However, we would also like to see electric bicycles fall in the ambit of the Fame II policy with an independent incentive for two wheelers based on some of the key features like battery power etc..” Nexzu Mobility manufactures electric scooters and electric bicycles in the country and it operates in both in both B2B and B2C segments. It has a manufacturing plant in CHakan in Pune district of Maharashtra.
OLA ELECTRIC: Bhavish Aggarwal, Chairman and Group CEO, Ola noted that the “The incentive of Rs.15,000 per KWH will help make electric 2 wheelers affordable for many more consumers. I believe India has the potential to lead the world in sustainable mobility and become a big market as well as a global EV manufacturing hub. Our Ola Future factory will be coming online soon and we will be aggressively pricing our range of electric scooters. With yesterday’s policy incentives, we will be able to accelerate the global transition to sustainable mobility even faster.”
TVS MOTOR COMPANY: Sudarshan Venu, Joint Managing Director, TVS Motor Company while welcoming the government’s latest move, said, “Sustainable mobility solutions are very important for the future and TVS is investing significantly behind this. The improved incentives for electric two-wheelers will increase penetration and encourage further indigenous investments in future technology.”
GREAVES COTTON: Nagesh Basavanhalli, MD & Group CEO, Greaves Cotton Limited, noted that “The new and revised FAME II incentive policy announcement by the government is encouraging which will make electric vehicles more affordable and accessible and further boost the adoption of electric vehicles especially electric 2-wheelers and 3-wheelers in the country. With people becoming more health and environment conscious post pandemic and switching to personal mobility solutions, this announcement will increase the penetration level of electric scooters as well as e-rickshaws.”
OMEGA SEIKI MOBILITY: Uday Narang, Chairman, Omega Seiki Mobility said “Electric vehicles (EVs) are costlier than traditional vehicles with internal combustion engines (ICE). This revolutionary step by the government to subsidise electric three-wheelers, two-wheelers, passenger vehicles and buses will provide the much-needed impetus in faster adoption, thus helping greatly in building up the ecosystem of EV’s in India. We at Omega Seiki Mobility strongly support this initiative. It is a major incentive for Make-in-India local manufacturers like us, enabling us to bring more and more EVs of various segments to the country. This will notably make India a significant player in the EV Industry”
HOP ELECTRIC: Ketan Mehta, CEO and Founder, HOP Electric Mobility commented, “The revision in the FAME policy will help Indian EV companies in better development and sale of electric products amid the pandemic. This subsidy will help us to accelerate the demand of EV products amid the pandemic and help the market to grow immensely. We also believe that it will promote the development of a strong EV ecosystem along with the goal to make our products 100% Made in India.” HOP Electric Mobility Private Limited has three market-ready products, two e- scooters and one e- motorcycle. The brand plans to launch at least ten new products in the next three years. HOP has a 40,000 square feet manufacturing facility in Jaipur in the state of Rajasthan.
RATTANINDIA -REVOLT INTELLICORP (REVOLT): “This bold policy measure clearly demonstrates the intent of the government to rapidly transform the adoption of electric vehicles” said Rajiv Rattan, Chairman of Revolt and RattanIndia Enterprises welcoming the move.He said the current incentive will translate into Rs. 48,000 incentive per bike that Revolt sells. This could mean FAME II incentives up to Rs. 480 Crore for current production capacity of one lakh bikes per annum.
Added Rahul Sharma, Founder, Revolt Motors, “The recently announced modification in the FAME India Phase 2 scheme will prove to be a game changer. The increase in financial incentive will further help in boosting adoption of products in the category and is a reinforcement of government’s commitment and intent for the EV industry. We are very pleased with this development as Revolt plans to reopen booking and further expand into newer markets. Such interventions coupled with the ongoing focus on infrastructure development can accelerate the growth of the sector immensely.
ATHER ENERGY: Tarun Mehta, CEO and Co-founder Ather Energy, noted: “The revision in the FAME policy, increasing the subsidy by 50% per KWh is a phenomenal move. Sales of electric two wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two wheeler sales to disrupt the market, and clock 6 million+ units by 2025. Ather Energy already has plans to expand distribution to 30 cities in the next 6 months and this increased subsidy will help accelerate consumer demand, immensely. The Government’s continued support to drive adoption of EVs, with a keen focus on locally built electric two wheelers will make India the manufacturing hub of EVs.”
