What are the benefits of government subsidies for electric autos?

Introduction

India has tens of millions of auto drivers. They drive millions of people around narrow roads, potholes, floods, and other harsh conditions. While most of these drivers use fuel-based autos, they cannot see much profit. Fuel costs in India are on the higher side as of now. Comparatively, electricity cost is lower. Hence, more drivers today are opting for e-autos. The Indian government also highly supports them as they promote green and clean mobility across the country. In hindsight, India is going through some forgettable Air Quality Index numbers. The government is urging and supporting automobile manufacturers to bring on more EV models to combat this.

On the other side, many auto drivers use rental autos. They have to pay the owner a chunk of what they make. At the end of the day, they make very little money. To combat all this, electric autos are seen as a long-term solution. The Indian government is aware of this. They introduced the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. Let us see about them in detail.

The FAME Scheme

On the world stage, India is seen as a significant player in combating climate change. As a population of 1.4 billion and rising, we have a considerable responsibility on our shoulders. Realizing this, in 2015, the Government of India launched the FAME Phase 1 scheme. The scheme had a budget of about ₹10,000 crore, and subsidies were given to thousands of people who bought electric vehicles. The scheme went on till 2019.

The Phase 2 of the FAME scheme was kicked off in 2019. The scheme aims to cover 5 lakh electric three-wheelers to encourage the manufacturing of commercial e-rickshaws and load-carrying vehicles. The subsidy amount for the car depends on the battery capacity and cost quoted by the manufacturer. E-rickshaws or electric three-wheeler vehicles under ₹5 lakh are eligible for subsidies under the FAME 2 scheme. This was supposed to be a 3-year plan and was planned till 2022. However, the FAME 2 Subsidy was extended till 2024.

Top EV-Friendly States in India

The subsidies for electric vehicles vary for each state. The states of Gujarat, Maharashtra, Meghalaya, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, and Kerala give hefty subsidies to EV buyers in their respective states.

FAME 2 Eligibility

You must fulfil the following criteria to be eligible for the FAME 2 subsidy.

• Valid ID proof like Aadhaar, Voter ID, etc.
• You must not have claimed the benefits of the subsidy before.
• The name of the vehicle's registration should match the ID provided.

FAME 2 Subsidy Amount

At the start, the government provided ₹10,000 per kWh. It was later increased to ₹15,000, or 40% of the vehicle cost.

How to avail subsidy for electric autos?

Make sure your vehicle OEM is registered with the government to avail of subsidies. Also, reach out to your vehicle showroom and get to know the details. The manufacturer will deduce the subsidy amount from the total bill amount.

How do you know your desired vehicle comes under the government subsidy scheme?

Yes, only some electric vehicles come under the subsidy scheme. EVs sold in India and those that qualify for subsidy are not the same list. Click here to know whether your car is on the subsidy list.

Final Word

If you want to buy an electric vehicle, now is the right time to do so. The Indian government is supporting the manufacturers and consumers in every possible way. It is wise to make use of the benefits being offered. Because as demand and craze for EVs rise, the subsidies may not be this high. So, it is best not to let the ship sail. As the craze continues, EVs may also replace conventional automobiles for daily commute.

Along with the Indian government supporting you for a fraction of the cost, Gaadi Bazaar is here to help you for the rest of the price. We believe in creating a greener and cleaner environment. We provide special loan offers with competitive interest rates for electric vehicles. In the long run, greener and cleaner energy will not only contribute to India’s growth but also help the world combat global warming.