Electric vehicle (EV) manufacturers are advocating for stable and long-term incentives before the rollout of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Phase III. The call comes amid industry concerns over the continuity of subsidies and incentives crucial for promoting EV adoption and manufacturing in India.
The FAME scheme, initiated to accelerate the adoption of electric vehicles and reduce vehicular emissions, has been instrumental in incentivizing EV production and purchase. However, industry stakeholders emphasise the need for clarity and assurance on subsidy continuation beyond the current phases to sustain market confidence and investment.
Manufacturers argue that a stable policy environment with consistent incentives is essential for planning long-term investments in EV manufacturing infrastructure, research and development, and market expansion. They emphasise that any uncertainty in subsidy schemes could deter potential buyers and disrupt supply chain dynamics, impacting the growth trajectory of the EV sector.
Stakeholders within the EV ecosystem are urging the government to provide a clear roadmap for subsidies and incentives under FAME III, aligning with industry growth projections and technological advancements in electric mobility. This proactive approach aims to foster a conducive environment for innovation and investment in sustainable transportation solutions.
The EV industry's appeal underscores the importance of policy continuity and robust support mechanisms to achieve India's ambitious targets for electric mobility adoption. As the government prepares to launch FAME Phase III, stakeholders advocate for policy stability as a critical factor in realising the full potential of electric vehicles in addressing environmental challenges and enhancing energy security.
