Government launches FAME-India scheme to lure buyers towards green vehicles



After much faff over the topic, it seems like the Indian government has finally acknowledged the importance of eco-friendly, tree hugging vehicles. Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME-India) was officially launched by the the Department of Heavy Industry (DHI) of the Government of India and the Society of Indian Automobile Manufacturers (SIAM), today. FAME-India will see the government throwing juicy incentives for people who choose to buy an electric or hybrid vehicle, instead of the regular fossil fuel burners.

Mahindra Reva E2O India interior and exterior (3)

Mahindra Reva e2o starts at around INR 5 lakh (ex-showroom, Delhi).

For the average consumer, FAME-India translates to a saving of INR 29,000 on a purchase of a new electric two-wheeler, and a substantial sparing of INR 1.38 lakh on electric or hybrid car purchases. This scheme is actually a part of the government’s National Electric Mobility Mission Plan (NEMMP) 2020. Under this scheme/plan, the govt. is to pitch in INR 795 crore within the coming two fiscals, commencing with immediate effect in this year, itself. The movement will kick-off in metropolitan cities, according to Union Heavy Industries Minister Anant Geete. Geete said, “Eventually the scheme will be launched in Smart Cities and all major cities across the country.” By the time it’s come to total fruition, this scheme would cost the govt. an estimated INR 14,000 crore.

KTM E-SPEED electric scooter (2)

Electric two-wheeler market could take off, especially considering the incentives.

As mentioned earlier, Phase 1 of this scheme will be put in place in the next couple of years, between 2015-17 and will cost an estimated INR 795 crore. Out of this amount, INR 500 crore will be spent on demand incentives. Geete said,  “The customer can get the incentive in the form of lower cost of hybrid or electric vehicles at the time of its purchase. Manufacturers can claim the incentive from the government at the end of each month.” According to this green scheme, electric-powered two-wheelers are privileged to demand incentives ranging from INR 1800-29,000. Three-wheelers too are eligible for these and can queue for incentives ranging between INR 3300-61,000. Four-wheelers can expect incentives of between INR 13,000-1.38 lakh and LCVs can demand incentives of INR 17,000 to 1.87 lakh. Buses can expect to demand incentives between INR 34 lakh to 66 lakh.


Demand incentives on hybrid buses can be up to INR 66 lakh.

While at the launch of this eco-friendly scheme, Geete said, “Keeping in view the limited domestic reserves of the conventional fuels and the rising demand in the automobile sector, it is a dire necessity to find alternative sources of energy for transport which are eco-friendly yet cost-effective.” Additional Secretary of the Heavy Industries Ministry Ambuj Sharma also chipped in, “Tata Motors is soon going to come out with a couple of offerings in the segment. Maruti Suzuki is also ready with its Swift model with range extender technology.”

Upcoming cars 2015 Mahindra XUV500 HYbrid

Hybrid cars could become popular in India, after all.

Industry experts believe that the FAME-India scheme could give a vital boost to domestic vehicle manufacturers to not only produce and sell their vehicles in India, but to also export them to foreign markets. The government has already approved an initial investment of INR 75 crore for this scheme from the Plan Fund in this fiscal’s budget. Vishnu Mathur, who is the Director General of the Society of Indian Automobile Manufacturers (SIAM) said, “This a giant step toward cleaner mobility. This is a new generation technology, which India has started late and with this we are going to make a beginning.”

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