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Electric vehicle manufacturers in a bind over subsidies as FAME-II expires on March 31
If they do not sell the vehicles by March 31, the OEMs will have to bear the losses. | Photo Credit: Kesavan A N@Chennai
Dr.G.R.Balakrishnan Feb 29 2024 Logistics News (Roadways & Railways)

Electric vehicle manufacturers in a bind over subsidies as FAME-II expires on March 31

Electric two/three-wheeler manufacturers are sitting on a stockpile of unsold vehicles for which they will not be able to claim subsidy under Faster Adoption & Manufacturing of Electric Vehicles (FAME) II, which is expiring on March 31.

They have offered heavy discounts in the hope of exhausting their inventories before the March 31 deadline.

 To make matters worse, there were clear signals in a recent meeting of the Original Equipment Manufacturers (OEMs) with the Ministry of Heavy Industries (MHI) that neither is the FAME II scheme being extended nor is there any decision yet on FAME III.