India incentivised about 9 lakh EVs under FAME-II in FY24, shows Economic Survey report

In FY24, as many as 8.94 lakh EVs were incentivized under the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, including 8.04 lakh electric two-wheelers, 76,200 electric three-wheelers, 12,400 electric four-wheelers, and 4,600 electric buses, according to the Economic Survey 2023-24 released on Monday.

A total of 1.32 crore EVs have received incentives under the FAME-II scheme between 2019 and 2024, with a budgetary outlay of ₹11,500 crore.

As the EV industry awaits monetary support in the upcoming budget, the FAME-III scheme has been excluded. H D Kumaraswamy, Minister of Heavy Industries and Steel, said last week that all seven ministries have sent in recommendations for the implementation of the FAME-III scheme, which is in its final stages. Notably, in March this year, the government introduced the Electric Mobility Promotion Scheme 2024 (EMPS 2024) with an outlay of ₹500 crore from April to July 2024.

"In FY24, the country produced approximately 49 lakh passenger vehicles, 9.9 lakh three-wheelers, 214.7 lakh two-wheelers, and 10.7 lakh commercial vehicles," states the Economic Survey.

"While passenger vehicles quickly recovered, the recovery period for two-wheelers, three-wheelers, and commercial vehicles is longer," it adds.

Meanwhile, the Production-Linked Incentive (PLI) scheme for the automobile and auto component industry has attracted an investment of ₹67,690 crore, of which ₹14,043 crore has been invested till March 31, 2024, according to the Economic Survey. So far, 85 applicants have been approved under the auto PLI scheme, which has a budgetary outlay of ₹25,938 crore from FY23 to FY27. Notably, applicants have proposed the generation of 1.48 lakh jobs, against which 28,884 jobs have been created till March 31, 2024.