NEW OLA FAME-II electric 2-wheeler discount policy: Ather, Ola, Okinawa upbeat about demand

The amendments to the FAME-II electric vehicle policy were rolled out on Friday and manufacturers have lauded the efforts in adopting EV mobility in the country.

The news that electric two-wheeler makers can give a discount of almost 40 percent of their scooter or bike value has definitely lifted the sentiments of buyers as well as manufacturers. The amendments to the FAME-II electric vehicle policy were rolled out on Friday and manufacturers have lauded the efforts in adopting EV mobility in the country. This scheme also favors electric rickshaws as well as buses but the details of these have to be worked out. We have got the reaction of the electric vehicle manufacturers on the changes to the FAME-II policy.

Also Read FAME-II amendment: Made-in-India electric 2-wheelers cheaper and more e-buses, rickshaws in the offing

Tarun Mehta, CEO, and Co-founder of Ather Energy said

“The revision in the FAME policy, increasing the subsidy by 50% per KWh is a phenomenal movie. 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.”

Saurav Kumar, Founder, and CEO, Euler Motors said

The decision to extend the FAME II scheme will be incremental to push EV adoption in the country. The FAME subsidies have helped EV manufacturers to build efficient and advanced vehicles in the last three years. However, the strict stipulations of the scheme have limited the OEMs to avail of its benefits. Given the slow uptick of EVs, the relaxations and revisions in the scheme will ensure OEMs can continue to offer the vehicles at a subsidized cost and cultivate a larger market for electric vehicles.

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 Govt. to subsidize 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”

Sudarshan Venu, Joint Managing Director, TVS Motor Company said

“We welcome the government’s continued support to EVs. 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. Such policy direction should lead to the indigenous development of future technology.”

Yatin Gupte, Chairman, and Managing Director, Wardwizard Group that makes Joy e-bike said

“The news came at a time when the EV industry is on the rise. This will not only delight the EV enthusiasts but also encourage the mainstream commuters to opt for electric vehicles.”

Maneesh Singh, VP, Strategic Development, DAO EV Tech, a dedicated smart electric mobility manufacturing start-up based in Hyderabad said

“Government’s recent decision to extend FAME II policy till 2025, has definitely helped EV OEM to plan localization and eco-system with three years subsidy as known visibility. It will surely further accelerate IEC to EV vehicle transformation mandated by respective state EV policies. This will also help EV Eco-system to continue strengthening the end-consumer market, as consumers continue to avail subsidy.”

Rahul Sharma, Founder, Revolt Motors said

“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 the adoption of products in the category and is a reinforcement of the 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.”

Bhavish Aggarwal, Chairman, and Group CEO, Ola said

“I welcome the government’s amendment to the FAME II subsidy. 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 Futurefactory 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.”

Anant Jain, Head of Market Intelligence – India, GfK said

“The electric vehicle segment in India has immense potential to generate a lasting impact on the ecosystem of the automotive sector despite being in a nascent stage. As per GfK Automotive Syndicated Monitor 2020 Study. More than half of the surveyed respondents agreed that the key purchase drivers would be the availability of advanced technology, eco-friendly nature, and fuel efficiency. The recent announcement by the government is expected to further motivate the customers to adopt electric vehicles. There are various factors that are driving this shift in preferences, however, low operating costs of EVs and soaring fuel prices motivate buyers to consider more fuel-efficient alternatives. The increasing levels of awareness on EV technology among young consumers is likely to accelerate the growth and adoption of EVs across product segments.”

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles ( SMEV), said

It’s an important and admirable decision taken by the government, a move that will bring down the prices of electric two-wheelers nearer to the IC vehicles and remove one of the biggest blockades of the high sticker price of electric two wheelers. A City Speed electric scooter with a range of 100km/charge will now cost less than 60000 and a high-speed scooter with a range of 80 km will come nearer to the price tag of Rs.1 lac. Together with the other important factors like extremely low running cost, low maintenance and zero emission, such price levels will surely spur a substantial demand of electric two wheelers. We believe the time has come for mass adoption of electric two wheelers and such initiatives coupled with a mass awareness campaign by the government and easy terms financing by public sector banks will bring us closer to the target of 30% of the two-wheeler market becoming electric in 5 years.

Jeetender Sharma, MD & Founder Okinawa Autotech

“The E2W industry is once again experiencing a positive sentiment and a high level of interest from the Government of India. The government of India’s revisions to FAME-II subsidies is a welcome step that will only add zeal to the adoption of electric vehicles. Lowering the prices of electric scooters in the country will really help to persuade more riders to switch from a combustion-engined model to an electric one. We have always emphasized the importance of creating an ecosystem for EV mobility, and this new revision to the FAME II scheme is an important step in that direction.”