The Federation of Indian Chambers of Commerce and Industry (FICCI) has proposed to the Ministry of Heavy Industries that the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) project continue to be supported.
FICCI requested that the government continue to encourage people to use electric cars (EVs) for the next five years, and then assess how things are going after three years. If the rebates abruptly end, EV prices might rise by 25%. The current FAME II strategy will expire in March 2024.
Only 5% of automobiles in India are currently electric. According to FICCI, it is critical to maintain the FAME scheme in order to meet the government’s target of 30% electric vehicles by 2030. FICCI believes that if they continue to offer discounts for the next five years, they will be able to help more than 30 million individuals obtain electric vehicles while also contributing to the 30% target. They propose gradually ending the incentives over the next 3-5 years as batteries and EV parts become more affordable.