Maharashtra tops list of states buying EVs through FAME scheme

In electric four wheelers, including cars, Delhi came top

Maharashtra tops the list in sales of electric vehicles across all segments which have availed of the FAME II subsidy, followed by Karnataka, Tamil Nadu, Gujarat and Rajasthan.

The top five states collectively account for over 56 per cent of the 0.85 million electric vehicles bought through the scheme, according to government data and span two wheelers, three wheelers, e-rickshaws, and four wheelers.

The trend of the top states is akin to registrations of internal combustion engine (ICE) vehicles though with one exception: Uttar Pradesh which accounts for 11 per cent all vehicle registrations based on data to March 31st 2019 (when it was predominantly petrol and diesel) and was  ranked at number two, has lost its position in the top five in the electric sweepstakes.

It has been replaced by Rajasthan  which is number five in the pecking order.

With electric vehicle sales of 39,572, Uttar Pradesh is far behind in its conversion to electric, accounting for only 4.6 per cent of overall electric vehicle sales and a mere 3.4 per cent of electric two wheelers sales.

By contrast, Rajasthan has sold 60,584 vehicles, most of them two wheelers. Only 45 electric four wheelers were sold under FAME II. The state’s share of total electric vehicle sales is pegged at 7.1 per cent.

While Maharashtra remains number one on both the lists, Karnataka has overtaken Tamil Nadu and Gujarat in the rankings for electric vehicles (in comparison to the share of registrations in March-end 2019 when it was mostly ICE driven motor vehicles) to take the second slot in electric vehicles.

That is understandable as Bangalore is the software capital of the country and also home to two big players, Ola Electric and Ather Energy.  

In electric four wheelers (which include passenger cars), Delhi was in the top selling market with 2,864 vehicles followed by Karnataka (1,359), Maharashtra (735), Telangana (427), Haryana (369) and West Bengal (197).

 

The six states dominate the sales, accounting  for 93 per cent of 6,397 electric four wheelers sold in the country, based on availed FAME II subsidy data.

However, all four wheelers are not eligible under the FAME II scheme — for example many electric car brands  are not — and so the FAME II-led sales  do not reflect the entire sales of electric four wheelers.  

Under the FAME II scheme, the government earmarked Rs 10,000 crore as a subsidy to electric vehicles. The scheme has been extended till March-end 2024.

Government data shows that the total disbursement to date is Rs 3,775 crore. The latest budget has earmarked Rs 5,500 crore till March FY24.  

The subsidies vary substantially depending on the vehicle. They can range from Rs 20,000 for an electric two wheeler to as much as Rs 3 lakh for a car. But the average subsidy across all types works out to around Rs 44,000 per vehicle. Electric two wheelers account for 89 per cent of the total electric vehicle sales.

In electric two wheelers, Maharashtra has caught on faster than any other state, followed by Karnataka, Tamil Nadu, Gujarat and Rajasthan. The five states account for 60 per cent of overall sales.