Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

[pib] Technical Analysis of FAME II Scheme 


From UPSC perspective, the following things are important :

Prelims level : FAME II

Mains level : Issues related to the (possible) early adoption of the EVs in India.

  • The NITI Aayog and the Rocky Mountain Institute (RMI) has released a report on opportunities for the automobile sector and government under the Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme.

India’s Electric Mobility Transformation

  • The report is titled ‘India’s Electric Mobility Transformation: Progress to Date and Future Opportunities’.
  • It quantifies the direct oil and carbon savings that the vehicles incentivized under FAME II will deliver.
  • According to the analysis, if FAME II and other measures – in public and private space – are successful, India could realize EV sales penetration of 30% of private cars, 70% of commercial cars, 40% of buses and 80% of two and three-wheelers by 2030.
  • For example, achieving these levels of market share by 2030 could generate cumulative savings of 846million tonnes of CO2 over the total deployed vehicles’ lifetime.

Key highlights from the report:

  • The electric buses covered under FAME II will account for 3.8 billion vehicle kilometers travelled (e-vkt) over their lifetime
  • In order to capture the potential opportunity in 2030, batteries must remain a key focal point as they will continue to be the key cost driver of EVs.
  • EVs sold through 2030 could cumulatively save 474 million tonnes of oil equivalent (Mtoe) worth INR 15 lakh crore and generate net CO2 savings of 846 million tonnes over their operational lifetime.

What more is needed?

  • India needs auto industry’s active participation to ease electric mobility transition.
  • The auto and battery industries could collaborate to enhance customer awareness, promote domestic manufacturing, promote new business models, consider new business models to promote EVs
  • Government should focus on a phased manufacturing plan to promote EVs, provide fiscal and non-fiscal incentives for phased manufacturing of EVs and batteries.

To read more about FAME II Scheme, navigate to the page:

Second phase of fame to electrify public transport

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