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India is on the cusp of revolutionizing its mobility system. The government has devised a twofold approach through the Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme, which aims to benefit Indian industry and citizens. This Scheme’s second phase offers $1.4 billion in incentives to spur electric vehicle (EV) growth in the country.
The Government of India’s think tank, Niti Aayog, and Rocky Mountain Institute have jointly prepared a report that quantifies the energy and carbon savings that the vehicles eligible for FAME II will deliver over their lifetimes. Assuming all vehicles eligible for FAME II incentives are deployed, the net savings would be 5 million tons of oil equivalent (Mtoe) and 7 million tons of CO2.
FAME II is a beginning, not an end. Therefore, the report also quantifies the catalytic effect that FAME II could have on the overall EV market. If FAME II and other measures are successful, India could realize EV sales penetration of 30% for private cars, 70% for commercial cars, 40% for buses, and 80% for two- and three-wheelers by 2030. In addition, the lifetime cumulative oil and carbon savings of all electric vehicles deployed through 2030 could be manyfold larger than the direct savings from FAME II. For example, achieving these levels of market share by 2030 could generate cumulative savings of 846 million tons of CO2 over the deployed vehicles’ lifetimes.
India’s efforts in implementing several policies, including FAME II, signal the country’s vision for a shared, clean, and connected mobility system. Participation of multiple stakeholders will help capture the benefits of FAME II and its intended effect on the electric mobility ecosystem.
The report has three primary objectives:
- Provide a summary of key policy and industry initiatives to support rapid adoption of electric mobility
- Analyze the impacts of FAME II with respect to emissions, oil consumption, and overall EV adoption trends
- Propose possible actions that industry and government can take in continued support of the faster deployment of electric vehicles
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