After several years of promoting electric cars, India intends to focus on promoting the electrification of public and shared transport in the second phase of the FAME India 2 program. The programme is scheduled to run for three years.
In concrete terms, government subsidies will be used to bring 7,000 electric buses, 500,000 electric tricycles or rickshaws, 55,000 electric cars and one million electric two-wheelers onto the roads. According to the government, it will also support the construction of charging stations in cities and along motorways with a total of 10,000 crore (one crore corresponds to 10 million rupees) – the equivalent of around 1.3 billion euros.
In the first phase of the FAME programme, 278,000 hybrid and electric cars with a total value of 343 crore (around 44 million euros) have been supported since April 2015. In addition, 465 electric buses were purchased nationwide.
The industry is already planning to increase demand for electric buses in particular. Since the Ministry of Industry wants to promote the purchase of electric buses, Olectra-BYD is planning a second production plant for electric buses in India. The joint venture between the Chinese electric bus manufacturer BYD and its local partner Olectra plans to open a plant in northern India by 2021. In addition to Olectra-BYD, Tata Motors is also building electric buses in India.