Far from the 10 lakh target by 2022, only 31,813 high-speed electric bikes sold under FAME II till date

SMEV).

SMEV said the actual cumulative sale since January 2019 has been 52,959 units out of which only 31,813 vehicles were given subsidy under the FAME II scheme as the rest 21146 units did not qualify for the same.

In the calendar year 2020, the high-speed electric two-wheeler segment clocked sales of 25,735 units as against 27,224 units sold in the previous calendar year, registering a decline of 5.46%.

Although the decline was imminent due to the covid blow that has ruptured the entire automotive industry, the electric two-wheeler industry has been able to weather the pandemic slightly better than expected.

But, if one looks at the larger scenario, the numbers aren't that impressive considering the FAME 2 target. The scheme could not attract the customers to shift from the polluting petrol bikes to electric two-wheelers, mainly because of the preconditions and qualification criteria of FAME 2 which made the bikes unaffordable to the mass market customer despite the subsidy.

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles commented, "The FAME 2 scheme came with so many strings attached, which had been introduced prematurely or unnecessarily and resultantly only 4% of the stated targets could be achieved.

Gill further added the electric two-wheeler industry is seeing a positive sentiment and a very high level of interest from the customers and if FAME 2 is rejigged to remove the needless handicaps, the adoption can grow exponentially in a short time.

The FAME 2 scheme had some good points but came with so many strings attached, most of them introduced prematurely or unnecessarily, which lead to the achievement of only 4% of the stated targets.Sohinder Gill, SMEV Director

It would not only help achieve the stated objective, but it can also catalyse major investments into 'Made in India' products and locally sourced components.SMEV urged the government to come up with corrective measures that would help the industry to achieve the envisaged target of 10 lakhs of electric two-wheelers.

The central and state government in the recent past has taken many initiatives to propel EV sales such as the announcement to support battery manufacturing in the country with an outlay of INR 18,000 crores and allowing the selling of E2W without battery, entry of established players in the market, increase in citizens’ interest in green vehicles, start-ups foraying into the industry with innovative solutions like financing, last-mile delivery, charging, etc.

"Perhaps the only vital missing link is a robust, customer-friendly FAME 2 policy,” remarked SMEV Director.