Government sop spurs electric vehicle sales
Under FAME scheme, the govt will provide Rs795 crore as financial assistance to electric vehicle manufacturers till 2020
Mumbai: Sales of electric vehicles, including two- and four-wheelers, jumped 25% to 5,000 units in the first quarter of fiscal 2015-16 on the back of government incentives, industry lobby Society of Manufacturers of Electric Vehicles (SMEV) said on Friday.
The significant increase indicates that the FAME (Faster Adoption and Manufacturing of Electric Vehicles) programme is having a positive impact on the industry, it said. The scheme came into effect on 1 April.
FAME is a government scheme which envisages early and large-scale adoption of eco-friendly electric vehicle transportation platforms. Under the scheme, the government will provide Rs795 crore as financial assistance to electric vehicle manufacturers till 2020, towards creation of infrastructure and research and development (R&D) facilities.
“We believe that one of the key reasons which triggered the rise in the sales was the subsidies announced by the government, which benefited consumers directly. Our focus will now be on the technology road map and working on a strong charging infrastructure to support the growth trend," said Sohinder Gill, director-corporate affairs, SMEV.
With the continued support from the government, India will be able to add to the government’s target of 6-7 million hybrid and electric vehicles per year by 2020, said Gill.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!