April 20, 2021

Goal of promoting 10 lakh electrical 2-wheelers beneath FAME-II ‘nowhere in sight’: SMEV



With simply 25,735 models of excessive pace electrical two-wheelers bought in 2020, the formidable goal of producing a sale of 10 lakh such autos by March 2022 beneath FAME-II is nowhere in sight, the Society of Producers of Electrical Automobiles (SMEV) mentioned on Wednesday.

In accordance with the SMEV, the gross sales of high-speed electrical two-wheelers, which qualify for incentives beneath the federal government’s Quicker Adoption and Manufacturing of (Hybrid &) Electrical Automobiles in India (FAME) II scheme, in 2020 had been down 5 per cent from 27,224 models bought in 2019.

“Whereas the E2W business has been in a position to climate the Covid-19 pandemic by gross sales of excessive pace electrical two-wheelers within the January to December 2020 interval clocking 25,735 as towards 27,224 models bought within the earlier calendar yr, the formidable goal of producing a sale of 1 million beneath FAME-II is nowhere in sight,” the SMEV mentioned in a press release.

The SMEV mentioned when the FAME-II scheme was launched in April 2019 the plan was to place at the very least 10 lakh high-speed electrical two-wheelers on the street by March 2022.

Stating that FAME-II has did not pep up sale of electrical two-wheelers, it mentioned, “The precise cumulative sale since January 2019 has been 52,959, nevertheless, sale beneath the scheme has remained solely 31,813 models.”

Commenting on the scenario, SMEV Director Basic Sohinder Gill mentioned, “The FAME-II scheme had some good factors and laudable targets however got here with so many strings hooked up, most of them launched prematurely or unnecessarily, that result in the achievement of solely four per cent of the said targets.”

The scheme couldn’t entice the shoppers to shift from the polluting petrol bikes to electrical two-wheelers, primarily as a result of the preconditions and qualification standards of FAME-II made the bikes unaffordable to the mass market buyer regardless of the subsidy, he added.

Gill, nevertheless, mentioned, “Regardless of the setback, the E2W business is seeing a optimistic sentiment and a really excessive stage of curiosity from the shoppers and if FAME-II is rejigged to take away the useless handicaps, the adoption can develop exponentially in a short while, that would not solely assist obtain the said goal, it will possibly additionally catalyse main investments into “Made in India” merchandise and regionally sourced elements.”

He urged the federal government to give you corrective measures that may assist the business to attain the envisaged goal of 10 lakh electrical two-wheelers.

Stating that though the federal government has taken a number of steps equivalent to plans to help battery manufacturing in India with an outlay of Rs 18,000 crore and permitting the promoting of E2W with out battery, Gill mentioned, “…maybe the one important lacking hyperlink is a strong, customer-friendly FAME-II coverage.”