SMEV (Society of Manufacturers of Electric Vehicles), the registered association representing Indian manufacturers of electric vehicles, has petitioned the Niti Aayog to reiterate that the implosion of the Faster Adoption and Manufacturing of Electric Vehicles [FAME] 2 policy, in a series of detrimental actions since last year has contaminated the ambitious national E-Mobility charter resulting in a complete regression of its objectives.
SMEV pointed out that the situation has created a state of disequilibrium in the market, given that there is no more a level playing field in the automotive sector. The decision of the Ministry of Heavy Industries to blockade subsidy flow to OEMs has seen the demise of existing market leaders at the expense of legacy players. Start-ups are being punished. Four of the top EV producers since 2018- 2020 have been relegated to the bottom four today.
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Sohinder Singh Gill, DG, SMEV, said, “The triple whammy of subsidy blockade, clawback notices, and embargo on future sales are sabotaging the FAME 2 policy. It is evident that the E-Mobility ambitions of the country have been impacted as the scheme could not make up even 50% of its mandated target over five years, since 2019. The deterioration of FAME 2 and the deviation from the Niti Aayog's vision raise questions about the intended mass movement that was envisioned for E-Mobility.”
He further added, “A specific deleterious impact of squeezing out mass-market leaders has been that low-end commuter scooters are losing out to the premium segment. In a contrarian effect, not seen elsewhere, the FAME scheme has spawned a spurt in the premium EV bikes at the cost of commuter scooters.”