The third phase of the government’s incentive scheme to promote clean mobility, known as FAME III, will be announced soon but not included in the upcoming Budget, according to H.D. Kumaraswamy, the Union Minister of Heavy Industries. This announcement was made during an event on Tuesday.
The second phase of the scheme, FAME II, which concluded in March, had a total budget of ₹11,500 crore. FAME III is anticipated to have a smaller budget, but the Indian automobile industry hopes that the incentives will be maintained at ₹10,000 per electric vehicle. Additionally, FAME III is likely to allocate ₹2,000 crore for developing electric mobility infrastructure, including charging networks across the country.
The government’s goal is for at least 30% of all vehicles sold in India by 2030 to be electric models. This target is part of a broader environmental strategy aimed at achieving net-zero emissions by 2070 and reducing carbon emissions by 1 million tonnes by 2030, as stated by Kumaraswamy during an event organized by the Society of Indian Automobile Manufacturers (SIAM) focused on skilling and employment in the EV and electric mobility sector.
Dr. Hanif Qureshi, additional secretary in the Union Ministry of Heavy Industries, noted that while the adoption of electric three-wheelers, including e-rickshaws, is gaining traction with a penetration rate of around 50%, the penetration rate for electric cars remains low at around 1.8%. This is in stark contrast to the EV penetration rates in other regions, such as the US at 11%, Europe at 24%, and China at 36%.
Kumaraswamy also mentioned that the scope of India’s Automotive Mission Plan has been expanded. Initially focused on boosting the export of automobiles and auto components from 2024 to 2047, the scheme will now include a skilling component aimed at aligning the skills of the workforce with the needs of the EV sector. This decision followed consultations with industry bodies such as SIAM and the Automotive Component Manufacturers’ Association of India. The Ministry of Heavy Industries is developing educational and skilling programs for graduates, postgraduates, and doctoral students in collaboration with the Automotive Skill Development Council.
Sudhendu Sinha, an adviser at the government’s think-tank NITI Aayog, emphasized the importance of dispelling the myth that the EV industry is detrimental to the informal sector. He suggested that providing education and global certifications to students would help them secure jobs in the EV industry.
Neelesh Gupta, a partner at Deloitte India, highlighted the significant investment required for skilling and employment in the EV industry, estimated at ₹13,500 crore. He also pointed out the need for approximately 30,000 new employees annually in the EV sector, although currently, the industry only attracts about half of that number. Gupta launched a report at the event addressing the gaps in skilling within the EV sector.
