India’s fleet focus for electrification is gaining momentum

FAME II legislation excludes private buyers from EV subsidies. Industry groups hope this will change, but a focus on ride-hailing fleets also makes good sense. By Xavier Boucherat

India’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme is in its second phase, following the conclusion of the original initiative in March 2019. The scheme expands on the federal government’s original goals with a focus on accelerating battery technology development and building charging infrastructure outside of the Tier 1 cities. However, subsidies on new electric vehicles (EV) remain pivotal to the scheme, with buyers benefitting from a 20% discount on qualified vehicles for an average of between Rs 200,000 (US$2,688) and Rs 300,000. This comes in combination with a reduced Goods and Services Tax: internal combustion engine (ICE) vehicles are subject to a 28% rate, whilst qualifying EVs receive a 5% rate….

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