In the interim budget 2024, the finance minister, Nirmala Sitharaman may announce a support package of ₹12,500 crores for electric mobility players.
India’s EV sector hit a major milestone in 2023, selling 1.5 million units, a 46% YoY growth. The rapidly growing electric vehicle ( EV ) industry is requested a reduction in the goods and services tax ( GST ) rate on components and an extension of the Faster Adoption and Manufacturing of Electric Vehicles ( FAME ) subsidy scheme in the Budget 2024.
The Faster Adoption and Manufacturing of Electric Vehicles ( FAME ) II scheme, which has an outlay of ₹10,000 crore, expires on March 31 2024 and the proposed new outlay under FAME III will have a tenure of two years. The subsidies per vehicle under the new scheme are likely to be lower compared to FAME II.
The FAME 2 scheme, with a budget outlay of Rs 10,000 crore, was introduced in 2019 for a period of three years, targeting to support 7,000 e-buses, 5 lakh e-3 Wheelers, 55,000 e-passenger cars and 10 lakh e-two wheelers. Of this, a total of 12,16,380 vehicles have been subsidised till now with an expenditure of Rs 5,422 crore as of the reports till December 21, 2023.
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