Automakers cheer new FAME 2 guidelines for EV localisation
MUMBAI : Top automakers have cheered the government’s recent push to localise manufacturing for hybrid and electric vehicle (XEV) under the revised norms of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles Scheme (FAME 2).
This is in sharp contrast to the several instances over the last decade where auto industry stakeholders have clashed with government agencies on multiple fronts such as dual fuel policy, roll out of CNG stations, vehicular pollution, emission norms, safety mandates, as well as the government’s thrust on biofuels and electrification of vehicles.
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FAME list components such as control units, chargers, and AC units that need to be built locally, with specific deadlines, for manufacturers to qualify for subsidies under a government scheme launched to encourage the adoption of such vehicles.
FAME, which was introduced on April 1, 2015, entered its second phase (FAME 2) in April 2019.
The country’s largest carmaker Maruti Suzuki has already made significant investment in the local XEV supply chain and is setting up an EV battery plant in Gujarat and others are expected to follow suit.
“The intent to localize the key parts and aggregates in a reasonable time frame will benefit all stakeholders in the long term,” said Shailesh Chandra, president, electric mobility business and corporate strategy, Tata Motors. “Our team is studying the latest notification to understand its full implications. The government’s approach of defining a PMP (phased manufacturing program) does help bring clarity to the value chain, including the suppliers, to work towards progressive localization,” he said.
“Tata Motors has a local supplier base available for most of the parts notified under the PMP and is working closely with the identified suppliers to localize the remaining parts,” he said. “The PMP under FAME 2 will boost local manufacturing of EV components, including the battery packs, power electronics, and electric motors to be made in India for the world,” said Mahesh Babu, chief executive officer, Mahindra Electric.