Electric vehicles Industry Upbeat on Modi 3.0 with Hopes for Continued Policy Support and New Sops

Multiple industry stakeholders, including Electric vehicles Industry makers, told Moneycontrol that, despite the challenges of a coalition government, the focus on the EV ecosystem and net zero emissions will remain under Modi 3.0.

With the National Democratic Alliance (NDA) administration returning for a third term, the auto industry anticipates a significant boost to electric vehicles over the next five years.

Modi 2.0’s legacy and future prospects :

The Modi government 2.0 (2014-2019) paved the way for battery-powered vehicles by enacting policies such as FAME 2 (valid till March 31), an Electric vehicles production strategy, and product-linked incentive (PLI) schemes. The incoming government is anticipated to strengthen its reputation as a proponent of carbon neutrality by expanding on these measures. According to industry officials, the third edition of the Electric vehicles Industry incentive scheme, known as quicker adoption and production of electric cars (FAME), is likely to be approved in the coming quarter.

Expectations from FAME III :

FAME-III is expected to provide financial incentives for purchasing electric two-wheelers, three-wheelers, and government-owned buses. However, there has been no determination on whether electric cars purchased by institutional buyers, such as taxi aggregators, will be included in the updated policy.

Unlike the previous edition, FAME 3 is intended to prioritise the development and adoption of electric buses and trucks on a bigger scale. According to speculation, the new programme will last two years, which is less than the five-year period specified under FAME 2.

Electric Β vehicles IndustryΒ  optimism :

Multiple stakeholders, including Electric vehiclesΒ  manufacturers, believe that the push for the Electric Industry ecosystem and net zero emissions will continue throughout Modi 3.0. Uday Narang, chairman of Omega Seiki Mobility (OSM), emphasised the transition to electric trucks, saying, “We see great progress towards electric trucks, and we believe the 1-tonne, 3-tonne, and 0.5-tonne trucks will be at the forefront.” We are growing our e-truck manufacturing this fiscal year and anticipate favourable regulations and positive news on FAME 3 soon. We also anticipate more state administrations supporting this effort.

Market Adaptation and Growth :

Puneet Gupta, director of S&P Mobility, stated that while India’s Electric vehicles market has been expanding slowly, it is expected to accelerate significantly with the Modi government’s continuing backing. “The Modi government’s return and policies promoting electric vehicles mean that manufacturers will need to revise their electric vehicle strategies. This government is ambitious and intends to achieve the seemingly unattainable during their three-year mandate.”

Conclusion :

The Electric vehiclesΒ  is optimistic about Modi 3.0’s prospects, looking for continued legislative backing and new incentives to accelerate the uptake of electric vehicles. The planned FAME-III programme is expected to provide critical financial incentives while focusing on larger-scale development of electric buses and trucks, moving the industry towards a greener future. The sustained emphasis on carbon neutrality, combined with increased involvement from state governments, is expected to boost India’s position in the global EV industry.

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