Support provided by the government to promote electric and zero emission vehicles through schemes such as FAME II, need to be continued till penetration of such automobiles crosses a particular threshold with a good level of localisation, according to Tata Motors Executive Director Girish Wagh.
A case can also be made for extending the FAME II program, which will expire next year and allows larger electric buses to receive subsidies, he told PTI.
“The government has done a terrific job to promote, or more than promote I would say, ignite electric vehicle or zero emission vehicle demand. Whether it is FAME phase I, phase II, now PLI and state-level incentives, a lot of policy measures, the government has really done a terrific job,” he said.
In addition, Wagh stated, “Our expectation would be that the government continues with this until the penetration of electric vehicles reaches a specific threshold where there is a good level of localization.
The anxiety problems of the general public will also be addressed once you reach a certain threshold on the road, and I believe after that it will go away on its own. Inquiries about what to expect from the upcoming Union Budget prompted his response.
When asked specifically about FAME II, Wagh responded, “I can speak only for my industry. There may be a case to extend the duration of the scheme beyond next year.
On the overall expectation from the Budget, Wagh said it would be the continued spending by the government on infrastructure development as it has a multiplier effect, leading to a fundamental improvement in demand
