Budget 2024: EV sector gets no direct benefit, FAME-3 project gets no go

The electric vehicle sector did not get any special mention in the Union Budget 2024-25. Despite earlier signals that the new purchase subsidy program would be scrapped, the department expected the measures to accelerate EV growth. These include direct subsidies or incentives to encourage the adoption of green technology. At the same time, the FAME-3 project for rapid adoption and production of hybrid and electric vehicles has not received final approval. The phase is expected to expand its scope to include electric trucks and maintain the same funding level as its predecessor. In case of delay, the government may extend the short-term electric mobility promotion scheme. Also Read: Should You Buy Tata Nexon EV? Read this news and you will get complete information about this car as it has no solid benefits for the automotive sector. Indirect support through tariff exemptions for critical commodities such as lithium has been welcomed, but direct incentives for EVs remain desirable. Phase II of FAME, launched in 2019, yielded mixed results. Electric two-wheelers surpassed the target, while electric buses and three-wheelers fell short. The government's focus has now turned to large electric vehicles like buses and trucks. As the EV landscape evolves, the industry eagerly awaits clarity on government support mechanisms to promote adoption and production. Also Read: Top-5 Family Cars: These five cars are the first choice of middle class families. The post Budget 2024: EV sector gets no direct benefit, FAME-3 project gets no go