NITI Aayog & RMI Release Technical Analysis of FAME II Scheme

Speed Post News Network

New Delhi : The NITI Aayog and Rocky Mountain Institute (RMI) have released a report on opportunities for the automobile sector and government under the Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme.

The technical report titled ‘India’s Electric Mobility Transformation: Progress to Date and Future Opportunities’ quantifies the direct oil and carbon savings that the vehicles incentivised under FAME II will deliver. RMI is an Indian and global non-profit organisation focused on driving the efficient and restorative use of resources.

The report also quantifies the catalytic effect that FAME II and other measures could have on the overall Electric Vehicle (EV) market. According to the analysis, if FAME II and other measures – in public and private space – are successful, India could realise EV sales penetration of 30% of private cars, 70% of commercial cars, 40% of buses and 80% of two and three-wheelers by 2030.

Extrapolating from the same, the lifetime cumulative oil and carbon savings of all electric vehicles deployed through 2030 could be many-fold larger than the direct savings from FAME II. For example, achieving these levels of market share by 2030 could generate cumulative savings of 846million tonnes of CO2 over the total deployed vehicles’ lifetime.

The FAME II scheme, which was notified by the Union Cabinet in February 2019, aims to further accelerate the government of India’s commitment to a clean mobility future, sees the electrification of transportation as a primary focus area. FAME II intends to catalyse the market for faster adoption of EVs to ensure durable economic growth and global competitiveness for India’s automotive industry, according to a PIB release.

The key highlights from the report are : Effects of FAME II will go beyond the vehicles that are eligible under the FAME II, There is considerable energy and CO₂ savings associated with the two, three, and four-wheeled vehicles and buses covered by FAME II over their lifetime, as well as the potential savings associated with greater adoption levels by 2030, The electric buses covered under FAME II will account for 3.8 billion vehicle km travelled (e-vkt) over their lifetime, In order to capture the potential opportunity in 2030, batteries must remain a key focal point as they will continue to be the key cost driver of EVs, and Vehicles eligible under FAME II scheme can cumulatively save 5.4 million tonnes of oil equivalent over their lifetime.