FAME II Scheme: These measures will reduce fuel consumption, CO2 emission, says report

FAME II Scheme: If FAME II and other measures – in public and private space - are successful, India could realise electric vehicle (EV) sales penetration of 30 percent of private cars, 70 percent of commercial cars, 40 percent of buses and 80 percent of two and three-wheelers by 2030, a report suggests. The lifetime cumulative oil and carbon savings of all-electric vehicles deployed by 2030 could be many times larger than the direct savings from FAME II, it adds. Achieving these levels of market share by 2030 could generate cumulative savings of 846million tonnes of CO2 over the total deployed vehicles’ lifetime, says a report released by NITI Aayog and Rocky Mountain Institute (RMI).

EVs sold through 2030 could cumulatively save 474 million tonnes of oil equivalent (Mtoe) worth Rs 15 lakh crore and can net CO2 savings of 846 million tonnes over their operational lifetime, the study said.

In order to capture the opportunity in 2030, batteries will continue to be the key cost driver of EVs. Vehicles eligible under FAME II scheme can cumulatively save 5.4 million tonnes of oil equivalent over their lifetime worth Rs 17,000.2  crore, it said.

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The report says that the effects of FAME II will go beyond the vehicles that are eligible under the FAME II. Auto industry's active participation to ease electric mobility transition will play a vital role in the success of this scheme. The auto and battery industries could collaborate to enhance customer awareness, promote domestic manufacturing, promote new business models, conduct R&D for EVs and components, consider new business models to promote EVs.