Budget No New Relief for EV Sector: In her seventh budget presentation and the first under Modi 3.0, Finance Minister Nirmala Sitharaman left the electric vehicle (EV) industry disappointed by not announcing any new measures for the sector. The anticipated reliefs, particularly in the form of a new FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme and GST reductions, were notably absent from the budget.

The EV industry had been hopeful for updates on the FAME III scheme, which Union Minister HD Kumaraswamy had previously indicated was in the works. However, no details on its implementation were provided. In the previous Interim Budget, Sitharaman had allocated Rs 2,671.33 crore to the FAME initiative, aimed at boosting green mobility through EV incentives.

The FAME scheme, introduced to promote electric vehicle adoption, began with FAME I on April 1, 2015, initially planned for a two-year period but extended to March 31, 2019. With an allocation of Rs 529 crore, FAME I successfully supported EV uptake during its tenure.

FAME II launched on April 1, 2019, with a significantly larger budget of Rs 10,000 crore over three years. This phase, which concluded on March 31, 2024, dedicated 86% of its funds to demand incentives, providing a total subsidy of Rs 11,500 crore. This substantial support helped both EV manufacturers and consumers.

Despite the previous schemes' success, the lack of new initiatives in the current budget has left the EV sector seeking further government support to continue its momentum towards sustainable mobility.

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