The government should continue with cash subsidies for purchase of private electric vehicles under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme as it looks to turn a third of its fleet green by 2030.
That's according to Mahesh Babu, chief executive officer of Mahindra Electric. “Electric vehicles are in initial stages and we recommend that it should be considered for personal vehicles for a period of next two years,” Babu told BloombergQuint at the BNEF India Executive Forum on the future of energy and mobility in New Delhi today.
“If FAME scheme continues, we will have double digit penetration in next few years,” he added.
The central government is considering ending the subsidy given to privately owned electric vehicles in a setback to the electric vehicle sector that is struggling to gain a foothold in the country, The Times of India reported on June 22. The government, will however, offer cash subsidies to electric vehicles used by shared-mobility operators such as Ola and Uber, as their vehicles will run much more than private cars.
(Corrects earlier version to update Mahesh Babu's designation.)
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