The government has already placed orders with Tata Motors and Mahindra for electric cars
Though the FAME II scheme hasn't given any clarity on incentivising private four-wheelers yet. However, it has proposed the establishment of 2700 charging stations in metro cities and across other smart cities, tier 2 cities and hilly regions. The idea is to place at least one charging station in a grid of 3x3 km. Charging stations will also be set up at a stretch of 25 km on either side of major highways which connect major cities. The easy availability of charging stations is likely to give a fillip to the sales of electric cars as well. It will also be instrumental for automakers like Mahindra and Tata Motors who is already selling electric cars in India along with encouraging other automakers to include EVs in their product line-up. In fact, the state-run Energy Efficiency Services (EESL) announced its plan to acquire close to 20,000 electric vehicles for government use with an investment of ₹ 2,400 crore. The order will see the government acquiring these EVs by March, 2019.
Rajan Wadhera, President, SIAM, said, "As per our understanding, the FAME II will focus on EVs used for commercial applications and two/three wheelers and in creating the necessary infrastructure and ecosystem for EVs, which is a welcome move. While the details of the Scheme will be known shortly, the announcement of the Scheme, in itself, is a major milestone and augurs very positively for ushering clean and sustainable mobility in the country which the industry and SIAM will fully support"
Shailesh Chandra, President - Electric Mobility Business & Corporate Strategy said, "We welcome the move by the Government on approving FAME II. It brings clarity and policy stability in the industry, thus creating an environment for all the ecosystem players to commit to the journey of sustainability. We see this as the key intervention in accelerating penetration of electric vehicles and realization of Government's Vision 2030."
Hyundai will be launching the Kona electric car in India this year
Electric Vehicles manufacturers in India for long have lobbied for this scheme as it was necessary for faster adoption of electric vehicles. Though Audi has decided to bring the e-Tron to India, it had shown concern regarding the charging infrastructure. Mercedes-Benz too had stated it as a limiting factor and had termed getting the EQC in India as a premature decision. Hyundai has in fact already announced that it will be launching the Kona electric SUV in the country and in fact Nissan too recently said that it's all set to bring in its best-selling electric car in the world, the Leaf, to India too.
The scheme is also reassuring for Mahindra and Tata Motors which have allocated a large sum for the research and development on electric mobility. Other carmakers like Suzuki Corporation are setting up its battery plant in India but is planning to get majority of its business from exports could also find local buyers if the number of electric vehicles on the Indian roads will increase.