EV policy needs to be modified to make it more effective: Hero Electric

According to the country’s leading electric two-wheeler Hero Electric, The electric vehicle (EV) policy needs to be modified in order to make it more effective to achieve anticipate sales targets. Under the FAME-II scheme, which was launched earlier in April 2019, the plan was to put at least 10 lakh high-speed electric two-wheelers on the road by March 2022.But in last two years, the number of electric two wheelers on the road remains low at 60,000 units around. In 2020, it was just 25,735 units of high-speed electric two-wheelers which were sold in the country.

As per the statement given by Naveen Munjal-Managing Director, Hero Electric, “we are now two years down in the policy and there is only one year to go ahead. But if you look at the number of vehicles which have benefitted, it’s just 60,000 units around. It should have been 6,00,000+ by now. So something has need to be work on that is where the policy now needs to be kind of modified."

As per the phase-II of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme, 10,00,000 registered electric two-wheelers with a maximum ex-factory price are eligible to avail incentive of Rs 20,000 each.
Presently, only high-speed electric two-wheelers qualify for incentives under the FAME -II scheme.

Mr.Munjal also added, that it is like when they launch any new product or new publication etc where they are constantly observing that the goals are being met.And if it's not, then they have to do some course correction. So like that this policy needs course correction as well because it is not working in the way it should have worked."
Furthermore, he added that the policy has brought in too many considerations regarding speed, range, etc which has choked the growth of the sector.