At the heart of India’s green mobility push is the ₹10,000 crore Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme
A host of electric four-wheeler models, such as the e6 from China’s biggest electric carmaker BYD Auto Co. Ltd, Kia’s Soul EV, and Renault’s hatchback Zoe EV, may be launched in India, said two people, seeking anonymity.
A section of foreign automakers are leveraging the rule, announced by the government on 13 September 2018, that allows sale of up to 2,500 units imported vehicles in completely built units (CBUs) or completely knocked down (CKD) units if the models are compliant with international standards, to reduce the time and cost for new EV launches. “With no high homologation costs up to sale of first 2,500 vehicles, this route is being leveraged by some foreign EV manufacturers," said one of the two people.
At the heart of India’s green mobility push is the ₹10,000 crore Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme.
The first phase of the scheme, which began on 1 April 2015, was later extended till 31 March 2019. Fame-2, which began on 1 April 2019, has been extended till March 2024. The money allocated for Fame-2 will be used to subsidize 1 million electric two-wheelers, 500,000 electric three-wheelers, 55,000 electric passenger vehicles, and 7,090 electric buses.
A Shenzhen-based spokesperson for BYD Co. Ltd said on Friday that he would respond, but there was no response till the time the story went to press. Queries emailed to spokespersons of Kia Motors India Ltd and Renault India Pvt Ltd late on Wednesday night did not elicit a response either.
“Kia aims to get the Soul model, or e-Soul, and plans to set up an EV assembly line at its Anantapur factory in Andhra Pradesh. BYD’s e6 and e4 with a range of 500 km and 400 km respectively are being tested in India," said the first person quoted above.
Tata Motors Ltd and Mahindra and Mahindra Ltd are two of India’s biggest EV manufacturers. Some recent launches include Triton’s SUV Model H.
“There are limited EV models available in India," said the second person, a senior government official.
“Given that the initial sale of EVs are not expected to be in the same range as the ICE vehicles, the concession of up to 2,500 unit sales are being used by manufacturers," the first person said.
The ministry of road transport and highways in a gazette notification had said: “Provided further that in respect of vehicle manufacturer, importing into India unused units of CBU or CKD of right-hand steering control vehicles, directly or through authorised representatives, up to 2,500 units of Ml or L category of vehicles, as the case may be, and up to 500 units of other categories of vehicles annually, compliant with international standards, namely EEC or ECE or Japanese, the compliance of such vehicles shall be deemed to be established for sale and registration under rule 47, by a certificate of compliance for the relevant standard issued by an authorized agency or accredited certifying agency."
The Centre has also urged all central ministers and state governments to convert their fleets to EVs. Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Tamil Nadu, Delhi, Telangana, Uttar Pradesh, Uttarakhand, Meghalaya, and West Bengal have already framed their dedicated policies.