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English Español India: EV network development for 2019 slowed down

Government’s decision to not announce the FAME II scheme creates uncertainty among industry manufacturers.



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Author: PetrolPlaza Correspondent Pablo Plaza

The official announcement of guidelines for setting up charging infrastructure and state level policies in India for developing EVs network in 2019 were welcomed by the industry last year, however, the possibility of imposing a ‘feebate’–cross subsidization of EVs by increasing taxes on traditional fossil-fuel vehicles– has clouded the industry’s hopes.

The heavy-industry ministry foreseened to offer incentives on 10,000 units of strong hybrid vehicles in the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India (FAME) scheme to come. But Prime Minister Narendra Modi’s recent decision to not announce the second phase of the FAME scheme during the Global Mobility Summit came as a setback for the industry, reports Livemint.

The PM’s office insistence on incentivizing lithium-ion battery as opposed to the entire vehicle manufacturing chain has put the draft proposal prepared by the heavy-industries ministry in the background.

As a result of the uncertainties, few significant investment plans have been announced by any of the top vehicle manufacturers in the sector of electric mobility.

“The government should look at the performance of the vehicles while providing incentives and promote all technologies,” commented Society of Indian Automobile Manufacturers Deputy Director General, Sugato Sen.

It is expected that once the new government takes charge after the general election this year, an official announcement on electric vehicle policy will be made.

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