FICCI Proposes Extension To FAME Scheme In Bid To Reduce Upfront Costs Of EVs In India

  • Published December 5, 2023
  • Views : 1458
  • 2 min read
  • bookmark
One of the key recommendations of this proposal is to continue calculating the scope of the incentive based on battery size (per kWh) as seen in FAME II

Tata Nexon EV and Mahindra XUV400 EV

  • FICCI has submitted a proposal to the Ministry of Heavy Industries for continuation of the FAME scheme.

  • Main objective of FAME III is to make upfront cost of EVs more comparable to internal combustion engine vehicles through subsidies.

  • FICCI states FAME III is necessary to meet the government's target of 30 percent EV penetration in India by 2030.

The Federation of Indian Chambers of Commerce & Industry (FICCI), which is a non-governmental trade organisation in India, has submitted a proposal for the continuation of the FAME Scheme to the Ministry of Heavy Industries, Govt of India. The main objective of this proposal is to sustain increased adoption of EVs in India and reduce the premiums between the upfront cost of EVs and internal combustion engine (ICE) vehicles.

Why Extend The FAME Scheme?

2023 Tata Nexon EV

FICCI has urged the Ministry of Heavy Industries to extend the FAME scheme for the next five years, as the FAME II is set to expire in March 2024. The organisation also highlighted that a sudden withdrawal of the FAME scheme will substantially increase the upfront price of EVs by 25 percent, thus slowing down the process of EV adoption in India.

Mahindra XUV400 EV

Currently, the EV penetration in India stands at 5 percent, and FICCI has stressed upon the importance of continuing the FAME scheme to achieve the government's target of 30 percent EV penetration in India by 2030. The proposal also underlines the success of the FAME policy in encouraging companies to invest in the EV sector and other government initiatives like ‘Make in India’.

Hyundai Ioniq 5

Commenting on the proposal, Ms. Sulajja Firodia Motwani, Chair of the FICCI EV committee, emphasised the positive role of FAME II in reducing upfront prices of EVs, contributing to the positive momentum in EV adoption. She also mentioned continued demand incentives through FAME III to bridge the price gap between EVs and ICE-powered vehicles for sustained customer interests in EVs.

Let us know in the comments what you think of this proposal.

Tata Nexon EV Video Review

Was this article helpful
Yes No

Add Your Comments

Add your comment here
Tata Nexon EV
Images | Colours
Tata Nexon EV
3.5 82 user reviews
Starts at ₹ 12.49 Lakh
View November Offers
Review and Win Banner

You May Also Like

Tata Nexon EV Alternatives

See what our community has to say! NEW

India's largest automotive community

Explore Now
comminity image

Tata Cars in India

Tata Cars in India

Best SUV Cars

All SUV Cars

Upcoming Cars in India

Upcoming Cars
Tata Nexon EV Price in India
City On Road Price
Delhi Rs. 13.70 Lakh
Kolkata Rs. 13.86 Lakh
Bangalore Rs. 14.85 Lakh
Hyderabad Rs. 13.67 Lakh
Mumbai Rs. 13.65 Lakh
Ahmedabad Rs. 13.66 Lakh
Pune Rs. 13.65 Lakh
Chennai Rs. 13.67 Lakh
Patna Rs. 14.90 Lakh
Jaipur Rs. 13.68 Lakh
  • Latest
  • Popular

Top Car Brands

  1. Home ›
  2. News ›
  3. FICCI Proposes Extension To FAME Scheme In Bid To Reduce Upfront Costs Of EVs In India
×