How do you view FAME II Scheme of indigenising components and localise the manufacturing?

Barun Bharadwaj, Regional Business Director (IMEA) – Automotive OEM, Henkel Adhesive Technologie
“The government launched the FAME scheme back in 2015, with an aim to promote eco-friendly vehicles. It was initially limited to only hybrid and electric cars and 2 & 3 wheelers; however, Phase II now ensures that these are given to a wider range of EV’s and will include an investment of about ` 5,500 crore over five years which will provide subsidies for all types of electric vehicles. India also has a strong focus on promoting manufacturing in the country through the Make in India initiative. The allocated budget, will boost to kick-start the adoption of EVs, further indicating the government is serious in its efforts towards adopting new and sustainable technologies. This decision to extend support to all types of vehicles gives the EV industry a huge impetus and will help the Indian consumers in adopting sustainable, zero-emission vehicles.”

Naman Chopra, Director, CEO, RexNamo Automotive
It is a welcome move, and, we manufacturers will always support such schemes which promote and encourage usage of electric vehicles. However, there is much more that can be done to support EV industries and its components like providing soft-loans and other more benefits/exceptions in import duty among other things.

Sohinder Gill, Director General, SMEV and Global CEO, Hero Electric
Localised manufacturing is always a good idea; we must encourage Make in India, which is the ultimate backbone of the industry. My suggestion to the government is only about the timeline. The new scheme was announced on 25th March’ 19, which was supposed to be implemented from 1st April’19. In those 5 days, you are supposed to initiate localising products by 50 per cent, and within 5 months you were to localise 80 per cent of products. In wildest of their dreams, no automotive maker can do the 80 per cent of indigenisation in 5 months, nor can they start indigenisation from the day one. So, the only concern here is the time, as there hasn’t been any time set for the task, localising products hasn’t been initiated yet as they are yet in the designing stage. Therefore, no sale till now.