MHI to roll out FAME-3 scheme in two months to boost EV sector • EVreporter

The Government of India will introduce the third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme within two months, according to Shri H. D. Kumaraswamy, Union Minister for Heavy Industries. Speaking at the National Conference on Electric Mobility organized by ASSOCHAM on 4th Sept 2024, the Minister emphasized the government’s focus on developing India’s EV ecosystem, including enhancing local manufacturing and promoting sustainable growth. He called on stakeholders to collaborate in making India a global leader in electric mobility.

The Minister highlighted the recent growth in the domestic market, with three-wheeler sales reaching 59,073 units in July 2024, reflecting a 5.1% year-on-year increase, and two-wheeler sales totaling 14,41,694 units, marking a 12.5% year-on-year growth. He also discussed the need for a skilled workforce to support the transition to electric mobility and mentioned ongoing efforts with industry bodies to address this skill gap. The government’s focus is on accelerating EV adoption across various segments, including heavy-duty trucks, strengthening the EV value chain, enhancing infrastructure, and encouraging innovation and investment in electric mobility.

Tarun Kapoor, Advisor to the Prime Minister, noted that the transport sector contributes 13% of total CO2 emissions, with road transport accounting for 90% of this share. He emphasized the importance of a holistic approach to addressing environmental challenges. He also pointed out that global EV sales in 2023 reached 1.38 crore units, or 18% of total vehicle sales, while India sold 9 lakh two-wheelers, 5.8 lakh three-wheelers, and 85,000 four-wheeler EVs, highlighting the potential for growth in this sector. The government remains open to suggestions from stakeholders and will continue to support the sector.

Nishant Arya, Chairman of the National Council on Green Mobility at ASSOCHAM and Vice Chairman & MD of JBM Group, provided an industry perspective, noting that the EV sector in India is evolving into an ecosystem with the involvement of traditional OEMs, start-ups, and EV aggregate manufacturers. He mentioned that the sector has the potential to create 50 million jobs over the next decade and stressed the importance of policies like the PLI scheme in manufacturing and granting infrastructure status to the sector. Arya also emphasized the high skill requirements in electric mobility and the significance of budget allocations for employment and skilling are expected to enhance capabilities in areas such as electronics, diagnostics, metallurgy, new technologies, software, hardware, and firmware.

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