The government is in consultation with the industry to explore the extension of FAME or prolong its benefits, Hanif Qureshi, Joint Secretary of the Union Ministry of Heavy Industries, said on Friday amid a growing debate among industry experts on the strategic measures needed to ensure the continued competitiveness of electric vehicles (EVs).
The recent announcement by the Ministry of Heavy Industries regarding subsidy reductions for electric two-wheelers under the FAME-II scheme has sparked discussions among industry experts who are now advocating for the decoupling of battery packs from the vehicles themselves, recognising its potential to enhance cost competitiveness and drive EV adoption. The electric two-wheeler segment, which accounts for 55 percent of India’s entire EV industry, is facing significant pressure to reduce the cost of electric scooters. The impact of subsidy reduction on EVs is particularly pronounced in this segment, as buyers have limited purchasing power and may opt for petrol-driven two-wheelers given the circumstances.
However, Wardwizard Innovations & Mobility, which manufactures electric vehicles under the brand name “Joy e-bike,” has clocked a growth of 19 percent in June ‘23 over the last year, selling 2,529 units of low-speed and high-speed electric two-wheelers in June ‘23 compared to last year, where the company sold 2,125 units in June ‘22. Yatin Gupte, Chairman & Managing Director, feels electric two-wheelers are experiencing a surge in traction from July, reflected in the rising footfall and inquiries at their dealerships, and expects this trend to gain even more momentum as the festive season draws near.
While the electric two-wheeler industry in India has experienced significant
in India’s economic growth, ranking as the fifth-largest investor with equity flows nearing $40 billion. Panda described the India-Japan relationship as one of the most meaningful, strategically nurtured through annual summits, high-level visits, and personal bonds between leaders on both sides. Panda suggested that cooperation in the sectors of critical minerals and tourism could be beneficial. He further emphasised the potential for collaboration in trade, supply chains, and the clean economy. “Amid global instability due to geopolitical developments, the bilateral ties between India and Japan stand out for their genuine warmth and solidity. This partnership benefits not just the two nations but also the world,” he added.
Yoshihide Suga, the former Prime Minister of Japan, recently visited India with a delegation comprising over 100 government officials, members of Keidanren (Japan Business Federation), and parliamentarians. During his visit, he addressed the ‘FICCI Forum of Parliamentarians Interaction’ and also met with Prime Minister Narendra Modi. Discussing the robust Indian economy, Panda pointed to strong GST collection numbers and the stock market reaching new heights as indicators of a firm economic foundation. He asserted that these factors, coupled with India’s demographic dividend, fast-growing economy, and ongoing digital revolution, make the country an attractive prospect. He concluded by saying, “An upward trend in GST collections, often exceeding ₹1.5 lakh crore monthly, showcases the strength
and resilience of the economy.”