Budget 2024: EV industry awaits FAME-II extension, reduced GST on li-ion batteries, and more Electric vehicles, especially two-wheelers, have become more popular in India in the past few years. Last year, over 15 lakh EVs, spanning across segments were sold.

Thus, witnessing a growth of more than 48 percent compared to 2022 when around 10 lakh units were sold. Despite a notable overall growth in EV sales, there was a temporary slowdown specifically in electric two-wheeler sales around mid-2023.

The Ministry of Heavy Industries in late May, slashed the subsidy on electric two-wheelers from Rs 15,000 per kWh to Rs 10,000 per kWh. Additionally, the maximum subsidy cap was also lowered from 40 percent to 15 percent.

As a result, the cumulative EV sales for June, when the modified FAME (Faster Adoption and Manufacturing of Electric Vehicles) II scheme kicked in, were recorded to be lowest across the calendar year.

However, gradually both the electric two-wheeler segment and the EV sales as a whole, bounced back and concluded the year on a strong note.

Speaking of subsidies, the FAME-II scheme currently faces an uncertain future. With its original deadline of March 31 2024 approaching fast, industry stakeholders eagerly await a decision on its extension.

Since last month, discussions have been taking place regarding the extension of the current FAME II scheme by one more year until a new plan is formulated.

For the unversed, the existing scheme provides support for electric two-wheelers, three-wheelers, and four-wheelers, with an outlay of Rs 10,000 crore.