Criteria for E-Vehicle Subsidy Released by the Government

  • 22nd, Mar 2019 11:57 AM
  • Resham Aswani
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The criteria for the subsidy on electric vehicles is revised by the government from the standard 20 % of vehicle factory cost to the standards stating minimum speed, range, warranty etc.

The Indian government has declared the imbibement of new criteria in the recently approved proposal for implementation of the second phase of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) in India. The new benchmark states that Electric two/ three wheelers, e-rickshaws, all-electric passenger vehicle and other electric four-wheelers like pickup trucks will have to qualify certain standard norms in order to avail the EV subsidies.

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Recently, the Govt approved Rs 10,000 crore FAME II scheme for a period of three years, starting from  April 2019. On March 1, 2019, the government announced some amplification and mutation in the outline finalized by the government initially.

The latest declaration reveals the maximum subsidy cap of 20 percent on the factory price of electric vehicles, (except all-electric) buses would not extend any relevant benefits to the consumer who would have to pay for the overpriced EVs.

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To safeguard the consumer's hard-earned pockets against overpriced e-vehicles, and to ensure better efficiency, the Indian government came forward with the new proposal which defines a certain minimum range, speed, energy consumption, acceleration, and warranty & certain battery capacity as standards of qualification to avail subsidies on electric vehicles sold in India.

EV categoryCategory as per CMVRMin. rangeMax. energy consumptionMax. speedMin. accelerationMin. gradeabilityComprehensive warrantyMax battery capacity
e-2-wheeler L1/L2 60km 8kWh/100km 50kph 0.65m/s^2 7 degrees 3 years 3kWh
e-rickshaw/e-cart e-rickshaw/e-cart 60km 10kWh/100km N/A N/A N/A 3 years 5kWh
e-3-wheeler L5 80km 15kWh/100km 50kph 0.65m/s^2 7 degrees 3 years 10kWh
e-4-wheeler M1 140km 20kWh/100km 70kph 1.04m/s^2 7 degrees 3 years 30kWh
e-4-wheeler N1 100km 30kWh/100km 50kph 1.04m/s^2 7 degrees 3 years 20kWh

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This step is taken by the government with the combination of motos which consists of motivating industries to focus on efficiency rather than labelling the automotive with high prices, which will ultimately benefit the consumer. Further, it will ensure the arrival of EVs equipped with an efficient & regenerative braking system and a stop-start system.

Although the declaration is not precise enough to confirm if the benefits will be protracted to the private owners of e-fours wheelers as well. But yes the continuous focus on refining the policies by the government will take the whole e-vehicle segment into consideration while keeping elevated attention on commercials vehicles.

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Seamless greasing polishing of FAME II scheme by the government will inevitably bolster the eco-friendly vehicles while ensuring that consumers get the vehicles with higher adeptness & standard price label.