Government scheme support necessary before EV adoption crosses threshold: Girish Wagh

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Girish Wagh, executive director at Tata Motors, believes that the EV industry needs supportive government programs such as FAME 2 before EV penetration in India crosses a certain threshold. He believes that such programs need to be implemented until the penetration of electric vehicles exceeds a certain threshold and has a sufficient level of localization. His comments come as the extension of the FAME 2 program is due to end next year, PTI reported.

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Updated on:
January 22, 2023 at 11:40 am

The adoption of electric vehicles in India has surged due to the FAME scheme launched by the central government.  (Associated Press)
The adoption of electric vehicles in India has surged due to the FAME scheme launched by the central government. (Associated Press)

Wagh also said the central government had done an excellent job of promoting and igniting demand for electric or zero-emission vehicles. “Whether it is the first phase of FAME, the second phase, or the current PLI and state-level incentives, many policy measures, the government has indeed done very well,” he said. Wagh also added that he hoped the government would continue to implement the support program for some time. “Once you have a certain threshold in the road, the general customer anxiety is also addressed, and then I think it will sort itself out,” he added.

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Currently, the benefits of the FAME 2 program are limited to small vehicles. Girish Wagh also hopes that larger electric vehicles such as electric buses will also be included in the scheme in the coming days. “If they are included in FAME, then even there we could start to see the penetration or at least seeding of EVs,” he said. Tata Motors officials also suggested that the government could discuss the issue with the auto industry and take their views to consider whether it would make sense to include large vehicles in subsidies under the FAME 2 scheme.

In 2021, the central government extended ¥The two-year, 10,000 crore FAME 2 program until March 31, 2024 aims to promote electric mobility. The first phase of the FAME program was initially launched in April 2015 for a two-year period with an expenditure of ¥7.95 billion.Later, it was extended until March 31, 2019, increasing the payout ¥8.95 billion.The second FAME program was launched in April 2019 and will last for three years with a total expenditure of ¥10,000 million.

First published date: Jan 22, 2023 at 11:40 am IST

https://auto.hindustantimes.com/auto/electric-vehicles/govt-scheme-support-necessary-till-ev-adoption-crosses-a-threshold-girish-wagh-41674366561177.html

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