Selfies for subsidies? Govt wants to put its mark on EV discounts

The upcoming FAME-III scheme, which may be rebranded for its third edition, is a cornerstone of the government's push toward electric mobility. (Image: Pixabay)
The upcoming FAME-III scheme, which may be rebranded for its third edition, is a cornerstone of the government's push toward electric mobility. (Image: Pixabay)

Summary

  • The government wants EV buyers to get a certificate and snap selfies to tell them that subsidies lowering vehicle prices come directly from central funds, not just from automakers

New Delhi: Electric vehicle buyers in India may soon get a personal reminder of the government's role in making their green transition affordable.

Under the third phase of its flagship demand incentive scheme for EVs, the government plans digital certificates for customers and may even encourage them to take selfies with their vouchers at showrooms.

The digital certificates, highlighting the contribution of the central government in reducing the upfront cost of electric vehicles, will be issued by the ministry of heavy industries, the nodal ministry for the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.

These certificates will feature the Government of India’s logo, the subsidy amount, and a QR code linking to information about the FAME scheme and the customer's role in reducing the country's carbon emissions, two people with direct knowledge of the plans told Mint on condition of anonymity.

“Many customers don’t realize how much of the discount (on their EV purchase) comes directly from the government," one of the persons cited above said. "The discounted amount will be visible on the invoice as well, as is the current practice, and customers will know exactly how much support the government is offering," he added.

Dealers will issue a digital voucher to the buyer, which will act as a certificate acknowledging the government’s contribution to the EV purchase.

To add an interactive twist, customers will be encouraged to snap selfies with their vouchers at dedicated photo booths in showrooms.

These selfies, along with the vouchers, will be uploaded to the FAME portal by dealers, creating a digital trail that allows OEMs to validate the sale and claim the subsidy from the government. “The voucher will act as a visible reminder that the government is directly supporting EV buyers," the source added.

“There’s also a feeling in the government that OEMs could have gone a bit further to lower ex-showroom transaction prices," the second person said.

The ministry of heavy industries did not respond to Mint's request for a comment on the story till press time.

Also Read: EVs fare better in the resale market. Just don't compare them to ICE cousins.

The upcoming FAME-III scheme, which may be rebranded for its third edition, is a cornerstone of the government's push toward electric mobility. It provides buyers with a cash subsidy in the form of a reduced vehicle price at the point of purchase. While previous phases have spurred growth in the EV market, this new phase aims to make the government’s contribution more apparent to consumers.

 

This approach mirrors other government schemes like PM Kusum and PM Sugam, where digital certificates have been used to map beneficiaries and highlight the government’s involvement.

Discussions with stakeholders, including automakers and dealers, have been ongoing to ensure the new system is practical and efficient. “A discussion took place just yesterday regarding the selfie and voucher process, and the proposal will soon be presented to the Prime Minister’s Office (PMO)," the person said.

Continued support

Heavy industries minister H.D. Kumaraswamy confirmed that the government expects to finalize the third phase of the FAME scheme within the next couple of months. He said an inter-ministerial group is currently reviewing feedback and addressing issues from the earlier phases of the scheme.

Meanwhile, the ₹700 crore Electric Mobility Promotion Scheme, bridging the gap between the expired FAME-II scheme and the upcoming incentive programme, will remain valid until the end of September, ensuring continued support for the transition to electric vehicles.

Also read: Lenders feel the heat of slowing car sales

 

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