FAME India Scheme

Introduce yourself

FAME India Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) was launched in 2015 by the Government of India. It is a part of NEMMP (National Electric Mobility Mission Plan) 2020 and aims to encourage electric vehicles in order to reduce pollution, as well as dependence on fossil-fuels. This article explores the FAME India Scheme and its implementation, challenges, benefits, as well its overall impact on India’s automotive industry.

FAME India Scheme Objectives

1. Promoting Electric Mobility In India, create an ecosystem that will encourage the adoption and use of electric or hybrid vehicles.

2. Reducing Pollution Addressing environmental concerns through the promotion of cleaner alternatives to gasoline and diesel cars.

3. Improve Manufacturing Encourage local production and increase demand for electric cars.

4. Infrastructure Development Accelerate the development of infrastructure for charging EVs.

5. Financial Support: Incentives for consumers and manufacturers are needed to increase the adoption of EVs.

FAME India Scheme: Features and Benefits

1. The Phased Approach

   • This scheme will be implemented in phases.
   • Phase I (2015 – 2019) focuses on incentives for demand and building an ecosystem.
   • In Phase II (2019-2022), incentives for EVs, charging infrastructure and EVs will be increased and supported in a more extensive way.

2. The best incentives for buyers:

   • Under certain conditions, direct subsidies are available to buyers of electric three-wheelers or cars.

3. Infrastructure Investment:

   • In India, funding is being provided for charging stations to be installed in different states.

4. Research and Development

   • Promoting R&D for indigenous technology in manufacturing electric vehicles and related infrastructure.

5. Transport Public:

   • Electric buses should be promoted in the public transportation system to reduce pollution.

FAME India Scheme Impact

Positive Results

1. The EV sales are increasing:

   • After the FAME India Scheme came into effect, sales of electric vehicles increased dramatically. Electric two-wheelers, for example, saw an increase of over 1,5 lakh units in FY2022 as compared with previous years.

2. Development of Charging Infrastructure

   • In recent years, a number of states have launched projects to build electric charging stations. This has helped reduce the anxiety that potential users feel about their EV’s range. By the end of 2022, there were over 1,800 electric charging stations in all 50 states.

3. Growing Local Industry

   • The scheme has redirected focus toward the local manufacturing of EV components, particularly batteries, promoting ‘Make in India’ initiatives.

4. Public-Private Partnerships:

   • FAME has allowed collaboration between private and public companies to produce innovative technologies and solutions.

Challenges

1. The initial cost of vehicles:

   • The upfront costs of electric cars remain a barrier for many consumers, despite subsidies.

2. Chargers with a limited range of chargeability and anxiety

   • Electric vehicles are limited in their range by current technology, which can cause concern about the possibility of running out of power during a trip.

3. The implementation of state laws can vary.

   • Consumers and producers can become confused when there are differences between states in how policies are implemented.

4. The Issues with Battery Disposal

   • As the use of electric vehicles increases, it is important to address environmental impacts associated with battery disposal.

Success Stories

1. Tata Nexon:

   • Tata Motors is enjoying significant success in India with the Nexon Electric Vehicle, a result of the FAME India Scheme.

2. Mahindra eVerito:

   • The electric sedan is also popular with corporate fleet operators.

3. Electric buses

   • Delhi and Bangalore are two cities that have integrated FAME electric buses in their public transport system, reducing emissions significantly and showing the versatility of this initiative.

Future Perspectives

FAME India looks to have a bright future with its ongoing alignment with National Policy on Biofuels, and with existing frameworks for local manufacturing. Indian automobile industry expected to develop rapidly pushing the boundaries of electric mobility and sustainable manufacturing.

You can also read our conclusion.

FAME India Scheme represents India’s commitment towards green energy and carbon footprint reduction. This program’s successful implementation can have a significant impact on not only the economy, but on citizens health through cleaner and more efficient urban transportation solutions.

FAQs

1. FAME India Scheme – What is it?

FAME India stands for the Faster Adoption and Manufacturing of Hybrid and electric Vehicles in India. The Government of India launched this initiative to encourage electric mobility and reduce pollution through financial incentives.

The FAME India Scheme offers incentives to eligible individuals.

FAME India Scheme offers incentives to individuals who intend to buy electric cars, two-wheelers and three-wheelers. Electric buses and cargo trucks are also eligible, depending on the phase.

3. FAME India Scheme: How can it help with charging infrastructure?

Funds are allocated to the scheme for the installation of charging stations in India. The scheme is crucial for easing concerns over charging access and encouraging the adoption of electric cars.

4. What are some of the major challenges that FAME India faces?

Electric vehicles are expensive upfront, have a limited range due to the battery’s life and there is inconsistency in implementation by states.

5. What impact has FAME India had on electric vehicle sales in India?

After the implementation of this scheme in India, electric vehicle sales have increased significantly. In FY2022, for example, sales of electric two-wheelers surpassed 1.5 lakh units. This shows the increasing consumer acceptance thanks to the financial incentives offered under the scheme.

6. FAME India encourages local manufacturing.

Yes, one of the key objectives of the FAME India Scheme is to enhance local manufacturing capabilities in India, particularly for electric vehicles and associated components, promoting the ‘Make in India’ initiative.

7. How long will the FAME India Scheme last?

FAME India Scheme implements in phases. Phase I was launched in 2015, and it ran through 2019. Phase II began in April 2019, and will continue to 2022. The scheme is being discussed about updating or extending it.

8. What is the FAME India Scheme’s long-term goal?

In the long term, we aim to reduce our dependence on fossil fuels by a large margin, increase adoption of electrical vehicles in all sectors of society and improve air quality.

9. Does the FAME India Scheme only apply to vehicles owned by individuals?

The FAME India Scheme offers incentives for public transport, such as electric buses, and also commercial electric vehicles. This is a holistic approach that transforms the transportation industry.

10. What are the benefits of FAME India?

The FAME India Scheme provides incentives to consumers who purchase eligible electric cars from dealers registered under this scheme. These dealers must adhere strictly to all guidelines, including the requirement of submitting the relevant documentation for the electric vehicle incentive.

FAME India Scheme summarizes India’s efforts towards sustainability. The scheme offers an opportunity for government officials, consumers, and manufacturers to collaborate together in order to reduce carbon emissions and promote cleaner energy.