New FAME 2 specifications put all EVs out of subsidy range
Chennai: The latest FAME2 notifications — with clarifications issued on March 28 — will be available for electric/hybrid cars only if they are less than Rs 15 lakh in price and used as taxis; will not cover any electric car available in India right now — either mass market or premium.
The specifications not only give a price cut off of Rs 15 lakh but also a battery power (15 kilowatt hour/100 km), a range cut off (140 km) and a top speed specification of 70km/hour. This effectively keeps out not only mass market electric cars but even luxury/ premium vehicles being planned for the Indian market. “FAME 2 doesn’t offer any demand incentive for EVs in the personal mobility space or the luxury segment in specific, and we do not see any demand emerging for the luxury segment.
We believe that for an optimal push for EV penetration in the personal mobility space, demand incentives should be extended irrespective of any price bracket or size of the vehicle, as that would stimulate demand from the private car owners and encourage a faster adoption of EVs in this market,” said Martin Schwenk, MD & CEO, Mercedes-Benz India. Others like MG Motor, which has announced an EV launch in India this year, are forging product plans “irrespective” of FAME 2 incentives.
“Our second car (after the Hector) is an EV called E-ZS. In FAME the limit is 15 lakh so our first EV, which we will launch this year, is not going to qualify for FAME incentive. We do not depend on FAME incentive to launch our car. Irrespective or independent of that we are going to launch it. This EV should be very competitive and we’re trying to find different ownership possibilities also,” said Rajiv Chaba, president & MD, MG Motor India.
The incentive specs-sheet would mean vehicles lined up by companies like Toyota Kirloskar Motor and Maruti Suzuki, who are planning a big e-mobility push, will also not get any tax benefits. “Subsidies and lower taxes encourage faster adoption of environment friendly vehicles and support in achieving government’s electrification mission in the country. In Toyota’s vision of mobility 2050, all electrified vehicle technologies will remain relevant. Toyota will continue to focus and align with the government objective of minimizing pollution and reducing fuel imports,” said N Raja, deputy MD, Toyota Kirloskar Motor (TKM). Maruti Suzuki refused to comment on the issue.
Others like M&M and Tata Motors have already tweaked their e-mobility plans to give it a fleet focus. “Mahindra’s product plan and strategy was aligned much ahead on electric fleets and last mile connectivity vehicles. While, the private vehicle support would be preferred to increase EV mobility, clearly the fleet vehicles are priority for FAME II support,” said Mahesh Babu, CEO, Mahindra Electric.
The new notification, said that the government would offer subsidy to a total number of 35,000 electric and plug-in electric vehicles and 20,000 hybrid vehicles provided their ex-factory price is not more than Rs 15 lakh and they are used as taxis for public mobility. World over, electric and hybrid vehicles attract government subsidy to make them affordable options for buyers. Currently the electric passenger car market is a minuscule part of the overall e-vehicle market and fleet usage contributes over 80% of electric four wheeler sales.
Source: timesofindia.indiatimes
