FAME II subsidy positive: Hero Electric

In the latest modification, the department of heavy industries also capped incentives for electric two-wheelers at 40 per cent of the cost of vehicles, up from 20 per cent earlier.

New Delhi: Electric two-wheeler maker Hero Electric on Saturday said that the increase in subsidy under FAME II scheme would help in expanding the electric mobility base in the country.

“In what will be seen as one of the most significant moves in the last decade for the electric vehicles industry, the increase in subsidy under FAME II will usher in a new era of electric mobility in India. The increase in the cap of subsidies for EVs will be a game changer driving consumers towards electric scooters even as petrol prices continue to touch the Rs 100 mark,” Hero Electric Managing Director Naveen Munjal said in a statement.

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The government had on Friday made a partial modification of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II), including increasing the demand incentive for electric two-wheelers to Rs 15,000 per KWh from the earlier uniform subsidy of Rs 10,000 per KWh for all EVs, including plug in hybrids and strong hybrids except buses.

In the latest modification, the department of heavy industries also capped incentives for electric two-wheelers at 40 per cent of the cost of vehicles, up from 20 per cent earlier.

“As we continue to expand our reach, set up charging points and reskill mechanics to create an ecosystem, a conducive policy as this will help in the growth of EVs and transform the sector into a cleaner and greener mode of transportation,” Munjal noted.

Hero Electric aims to train over 20,000 roadside mechanics across the country over the next three years to deal with any issue its customers might face as part of its plans to instill confidence in buyers who opt for the green mobility, according to a top company official.

The Gurgaon-based firm, which sold around 53,000 electric two-wheelers last fiscal to lead the vertical, also aims to set up around 20,000 charging stations across the country over the next two years to ease range anxiety issues.

The company is aiming to sell 1 lakh units in 2021-22 fiscal, thus doubling its sales over 2020-21 fiscal.

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