Electric two-wheeler maker Hero Electric has put on hold investment of up to ₹700 crore for a year with the sector taking a nosedive as FAME II, the scheme aimed at promoting electric vehicles (EVs), has failed to deliver, according to a top company official.
Calling for a complete revamp of policy, the firm wants the Centre to include low speed two-wheelers for subsidy, arguing that for mass adoption of EVs in India, these cost-effective vehicles were critical.
“From an industry standpoint, there was a certain trajectory which was going on when we had FAME I... the manner in which FAME II was introduced, the whole industry took a downturn and [is] now recovering from that,” said Hero Electric MD Naveen Munjal.
As per Society of Manufacturers of Electric Vehicles, sales of FAME II qualified electric two-wheelers fell 93.84% to 3,000 units in the April-December 2019 period as against 48,671 units a year earlier.
