“For upcoming two-wheeler EV companies, those are lofty figures. Very few young Indian companies will even be eligible for this scheme, let alone benefit from it. The scheme will certainly be great for your Hyundais and Tatas, but unfortunately, it does little to accommodate two-wheeler EV companies in India,” a founder of a two-wheeler EV company said on condition of anonymity.
Even the older FAME II scheme which had allocated Rs 10,000 crore to be rolled out as incentives to push EV demand has seen very limited use for the actual EV startups leading the push to change markets.
The auto industry body Society of Indian Automobile Manufacturers said that the scheme shows the government’s commitment to supporting the Indian auto industry by incentivising battery-electric and Hydrogen vehicles and a selected list of auto components while encouraging local investments and manufacturing.