A Study on Fame India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India)-A Big Push towards PM’S Vision towards Sustainable Transportation & its Impact on Stock Market

Abstract

Introduction: The global climate crisis has led to an increase in the popularity of electric vehicles (EVs) worldwide. India's government, along with others, is promoting EV adoption to decrease harmful emissions, reduce dependence on oil imports, and promote renewable energy sources. In recent years, the rise in vehicle emissions has become a major concern. In response, the Central Government initiated the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in 2015.

Objectives: The goal of this scheme is to decrease pollution from diesel and petrol-fueled vehicles and encourage the production of electric and hybrid vehicles. According to a Press Information Bureau report, the Indian automobile industry has made great strides in the year 2023.[1] India has set a target to double its auto industry's size to ₹15 lakh crores by 2024. Additionally, India now ranks as the world’s second-largest producer of two-wheelers, sixth-largest producer of passenger vehicles, and the largest producer of tractors.

Methods: These achievements highlight the country's commitment to advancements in the automobile sector. On the flip side, also highlighted some challenges faced by the Indian automobile industry. It is crucial to address these obstacles and continue to promote sustainable and mentioned the various initiatives taken by the government to support the industry, such as the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme, the Automotive Mission Plan 2016-26, and the National Automotive Testing and R&D Infrastructure Project (NATRiP).[2] FAME India Phase I had four focus areas - technological development, demand generation, pilot project and charging infrastructure components.

Results: The phase was available up to March 31, 2019 with budget outlay of Rs 895 Cr. From the effects of the COVID-19 pandemic to the implementation of BS-VI emission standards, as well as the constant demand for innovation and skill advancement. The scheme aims to promote the swift adoption of electric and hybrid vehicles by providing upfront incentives for their purchase and establishing crucial charging infrastructures.

Conclusions: By doing so, it not only tackles the environmental concerns surrounding pollution but also addresses the issue of fuel security and its impact on stock market