Government's FAME policy spurs interest in EV industry

The Indian electric vehicle (EV) industry can be described as very niche, at the best. Many players exited this industry in the last few years and the existing ones are struggling. But the government has expressed intent and the subsequent announcement regarding support to the EV industry could be giving it a new lease of life.

After the announcement of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) programme in the Union Budget on February 28, 13 firms have approached the Society of Manufacturers of Electric Vehicles (SMEV) to be its members. SMEV is a consortium of companies that manufacture and sell electric vehicles and automotive batteries. It has 20 members currently. A new set of members is set to be announced soon.

Speaking to Autocar Professional Sohinder Gill, director, SMEV, said that the growing interest can be said to be the result of the announcements made by the government. The government has allocated Rs 795 crore to support various activities to boost the EV/xEV industry. Gill says that the announcements (for details, click on ) made on April 8 are exactly what the EV industry needed. However, he adds that three key factors have to be handled successfully for the government's vision to realise. They are – swift reimbursement of incentives to the EV makers, meticulous execution of pilot projects and support from state governments.

The FAME programme is based on the National Electric Mobility Mission Plan, announced by the UPA government in January 2013. The delay in the action had cost EV industry players dearly. Now with concrete steps announced, the Indian EV industry is set for a new growth journey.