KEY HIGHLIGHTS
- Rs 10,000 crore allotted for FAME 3 roll out
- New subsidy scheme to go live in the coming weeks
- Electric cars & hybrid cars likely to get relief
The government of India is planning on bringing the third iteration of the FAME subsidy scheme. The Faster Adoption and Manufacturing of Electric Vehicles scheme is aimed at lowering the costs of EVs. Currently, the FAME 2 scheme has expired while the FAME 3 will be rolled out soon. Read the complete details about this new scheme below. Moreover, make sure to join our 91Wheels WhatsApp Group for the latest updates from the automotive world.
Also Read: Mahindra BE.05 Electric Crossover Spotted Testing Again
FAME 3 Scheme To Lower Down The Prices of Hybrid Cars?
As per an online report, the new subsidy scheme will roll out after 100 days of the new government. The rollout of FAME 3 will be done to support the EVs. While it'll primarily focus on the electric two-wheelers and three-wheelers, the government electric buses will also fall under it. Moreover, it is being reported that the government is considering undertaking electric cars and taxi operators under the new scheme.
A budget of Rs 10,000 crore has been instigated as per the report. This budget will focus on pushing the new EV makers to shift the ICE market. However, the report also claims that the government is considering the idea of bringing hybrid cars under this new scheme. While there is no confirmation regarding it, it is suspected that if the hybrid cars fall under the price cap and the passenger cars are taken into the scheme; the prices will lower.
Recently, Maruti Suzuki has also shown its keen focus on hybrid cars. In fact, the company is betting on the hybrids as a replacement for the petrol cars for the future. The current hybrid models like the Grand Vitara, have proven to be a great success. Hence, lowered costs with the new subsidy scheme can prove beneficial for the new buyers in the coming months.
Also Read: Mercedes-Benz EQA Electric Set To Launch In India On July 8
Verdict
The new FAME 3 subsidy will prove to be a boon to the small EV makers in the two-wheeler market. However, the inclusion of passenger cars and electric cars is still under consideration. We think that the hybrid, if brought under the new scheme, can be a game changer in the passenger car segment.
Source: ET Auto
