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Everything You Need To Know About FAME-2 Subsidy

CalenderPublished at December 24, 2023By BikeJunction Team
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Everything You Need To Know About FAME-2 Subsidy

India's FAME 2 scheme was launched in 2019. It has aimed to ignite a revolution in electric mobility. This scheme is introduced to increase the faster adaption of EVs and reduce the carbon footprint for a sustainable future. Moreover, FAME 2 estimated approximately 80% of 2-wheelers and 30% of private cars are targeted to be electrified before 2023. 
 

FAME 2 has contributed to electric vehicle (EV) growth. The scheme's demand-side incentives, particularly the increased subsidy for two-wheelers, made EVs more affordable.
 

The following data represents the impact of FAME 2: 
 

  • Subsidies for electric scooters reached Rs. 20,000 per vehicle in 2021. Data reveals that over 792,000 EVs have been sold under the scheme until February 2023, a promising result.
     
  • Reducing the initiative cap to Rs. 10,000 per kWh and 15% of vehicle cost led to an average price hike of 21% and a subsequent 55% drop in EV sales. However, signs of recovery are already emerging, with marginal sales improvement in July 2023.
     
  • The first six months of this year have registered sales of 4,35,257 vehicles whereas in 2022 the numbers were 2,60,278. 
     

FAME 2's journey reflects the complexity of policy, technology, and infrastructure in driving EV adoption. By learning from its successes and addressing its flaws, India can ensure that its green mobility dreams. 
 

Following are how FAME 2 is helping people towards electric mobility: 
 

  • 10 lakh electric scooters registered with a Rs. 20,000 subsidy each, making them a budget-friendly breeze.
     
  • For those seeking electric cars, FAME 2 offers a Rs. 1.5 lakh boost for vehicles priced above Rs. 15 lakh. Hybrid options in the same price range get a Rs. 13,000-20,000 nudge.
     
  • 5 lakh e-rickshaws zip around with a Rs. 50,000 incentive each, electrifying urban mobility.
     
  • Public transport gets a significant transformation with Rs. 50 lakh for each of 8,000 electric buses, making green commutes a reality.
     
  • The government plans 2,700 charging stations across key areas, strategically placed every 3 km in a grid. At the same time, after every 25 km on highways.
     

This scheme is a revolutionary effort but there are still some challenges in this. However, careful planning and continued efforts can ensure the journey towards a greener future.

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