Connect with us

Hi, what are you looking for?

CleanTechnica

Clean Transport

Over A Quarter Million EVs In India Have Received Subsidies, Reports Indian Government

The Indian government has reported the number of electric vehicles that have benefited under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) program. The program had been launched as part of the National Electricity Mobility Mission Plan to boost adoption of EVs in the country.

The Indian government has reported the number of electric vehicles that have benefited under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) program. The program had been launched as part of the National Electricity Mobility Mission Plan to boost adoption of EVs in the country.

Image courtesy BYD

According to the Ministry of Heavy Industries and Public Enterprises, around 285,000 electric vehicles have so far been issued a total of $50 million in subsidies. We reported the subsidies disbursed in a July article. According to the FAME website, these vehicles have helped offset close to 140,000 tonnes of carbon dioxide emissions saving over 55 million liters of fuel to date.

The government offers subsidies only to commercial vehicles under the FAME scheme. A large number of models across two, three, and four-wheel options are listed as eligible to receive subsidies. The subsidies are available not only to pure EVs but also to hybrid cars.

While most of the eligible vehicles are two- and three-wheelers, some EVs and popular mild-hybrid cars are also eligible for subsidies. Electric variants of Tata Motors’ Nano (named Neo) and Tigor and Mahindra Electric’s E2O and eVerito variants are the EVs recognized under the FAME scheme. The Ciaz and Ertiga mild hybrids manufactured by Maruti Suzuki and Toyota’s Camry hybrid are also eligible for subsidies.

Vehicles acquired through the FAME scheme can only be used for commercial purposes. The government, earlier this year, announced tax incentives on the purchase of EVs for private use as well. The incentives can be claimed by buyers at the end of the financial year while filing tax declarations. The maximum tax deduction a buyer can claim has been set at Rs 150,000 (~ $2,200).

In comparison, under the FAME-II scheme, commercial buyers are eligible for direct and upfront financial subsidies of up to Rs 1,87,00 (~ $2,730) on the purchase of select electric car models and up to Rs 61,00,000 (~ $81,300) on the purchase of a Volvo hybrid electric bus.

The FAME subsidy and tax deduction are not the only financial support mechanisms offered by the Indian government. To promote adoption of electric vehicles in public transportation, the government has also announced subsidies to states and city-level authorities to procure electric buses.

The Department of Heavy Industries recently sanctioned subsidies worth $360 million to 64 cities for the procurement of 5,595 electric buses.

 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 

Advertisement
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

Smiti works as a senior solar engineer at a reputed engineering and management consultancy. She has conducted due diligence of several solar PV projects in India and Southeast Asia. She has keen interest in renewable energy, green buildings, environmental sustainability, and biofuels. She currently resides in New Delhi, India.

Comments

You May Also Like

Clean Power

Guest blog by Nitish Arora and Jessica Korsh India needs to exponentially increase the number of electric vehicle (EV) charging stations to power the...

Clean Power

Originally published on Future Trends. Welcome to another issue of our new India x Cleantech series! On a monthly basis, we are pulling news...

Cars

Volkswagen AG is joining Tesla in its appeal for India to lower import duties on EVs, Reuters reports. The goal is to drive demand...

Clean Transport

India will witness a rapid growth in freight transport over the coming decades. The country can implement a set of solutions to meet that...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.