Latest news with #FAME-II
The Hindu
4 days ago
- Business
- The Hindu
Electric bus operations set to boost public transport in Puducherry
With six electric buses arriving in Puducherry last month and 19 more expected by July-end, public transport is likely to get a boost. These buses will likely make the city cleaner and greener. Puducherry is late in buying electric buses, compared with the other Southern States. The measure is aimed at reducing the carbon footprint of the government-owned Puducherry Road Transport Corporation (PRTC), and its full transition to electric buses for its operations in urban and mofussil areas by the year-end. The Puducherry government will operate these buses under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME-II) Scheme of the Union government. Gross cost contract 'The 25 buses (10 AC and 15 non-AC) are 9-metre vehicles. They will be run on the gross cost contract in the public-private partnership mode. The ₹23-crore seed funding from the Smart City project will be used for the Behind the Meter (BTM) facility, and a major portion of the sum will paid on a per kilometre basis. The buses will ply on 15 tentative routes within urban areas. They will be operated on a viability gap funding model,' says Transport Commissioner A.S. Sivakumar. The charging infrastructure is being readied by Evey Trans Private Limited, a subsidiary of Olectra Greentech, on a 25,000-square foot site belonging to the Puducherry government on Maraimalai Adigal Salai. Official sources say the operator has to bear the cost of hiring drivers, electricity, and maintenance for 12 years. With a single charge, a bus can run up to 200 km. It takes around six hours to charge a bus. The battery-operated buses have a life of 6-7 years. Demand sent to the Centre While the 25 electric buses will ply on designated routes in the urban areas, the Puducherry government has planned to procure 75 more buses under the PM-ebus Sewa scheme. It has submitted the demand to the Ministry of Housing and Urban Affairs (MoHUA). According to an official, 'Puducherry plans to run 50 buses on inter-city as well as mofussil routes and the rest on the existing urban routes. Of the 75 AC buses, 50 will be 12 metres long. They will be deployed on inter-city routes. The rest of the buses (9 metres) will be deployed in urban areas.' The official adds, 'States or cities will be responsible for running the bus services and paying the operators. The Central government will support the bus operations by giving subsidies to the extent specified in the scheme.' Under the scheme, the Central government will provide ₹24 per km for a bus deployed on inter-city routes and mofussil routes and ₹23 per km for a bus in urban areas. The Puducherry administration will bear the rest.
Time of India
28-05-2025
- Automotive
- Time of India
EV two-wheeler sales soared 34x in 4 years, but market share stuck at 4%: Study
Electric vehicle (EV) sales in India have grown rapidly across segments in the last decade, but adoption rates remain modest despite significant fiscal support, a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) has found. The report, From Incentives to Adoption, presents a 10-year review (2014–2023) of government subsidies and policy interventions under FAME-I, FAME-II, Production Linked Incentives (PLI), and state schemes, and assesses their effectiveness across five EV segments. In the electric two-wheeler (E2W) segment, sales jumped from 19,333 units in FY2019 to over 6.5 lakh units in FY2023. However, the adoption rate – the share of electric vehicles in overall two-wheeler sales – was only 4% by the end of 2023. 'FAME-II's higher subsidy intensity (28.65%) compared to FAME-I (14.32%) boosted absolute E2W sales by up to 9 times, but had limited impact on the overall market composition,' the report states. According to Charith Konda, Energy Specialist at IEEFA and one of the co-authors, 'The government should continue offering purchase subsidies to sustain momentum but clearly communicate a phased-down trajectory for the longer term.' In the electric three-wheeler passenger (E3WP) segment, early policy support under FAME-I drove a 10x market multiplier effect. Around 27,000 additional vehicles were directly attributed to subsidies under FAME-I, with total sales reaching 2.67 lakh units by March 2019. The segment, however, matured during the FAME-II period and showed limited incremental impact from later subsidies. The electric three-wheeler cargo (E3WC) category saw a market share rise from 0.03% in 2015 to over 31% by 2023. The study found this growth was largely driven by operating cost advantages rather than central subsidies. A 1% reduction in operating cost led to a 0.563% increase in sales, highlighting the role of business economics in commercial segments. In the electric four-wheeler commercial (E4WC) category, sales improved after FAME-II and PLI schemes were implemented. A one-standard-deviation increase in subsidy intensity led to a 5% rise in sales. However, the adoption rate was still less than 1%. States that implemented incentives saw 211% higher sales growth than those that did not. For electric four-wheelers in the private segment (E4WP), sales grew due to new model launches and consumer demand, but adoption rates remained below 2%. The report highlights the need for continuing support in this segment. The report found that both FAME-I and FAME-II failed to make a statistically significant impact on electric bus (e-bus) adoption. Only 4,766 units were subsidised against a target of 7,262, and the sector continues to face structural barriers such as limited financing access and high upfront costs. 'Coordinated central and state action, pairing targeted purchase incentives, infrastructure rollout, and manufacturing scale-up can help electric cars compete effectively with their counterparts in India's commercial vehicle market,' said Saurabh Trivedi, Sustainable Finance Specialist at IEEFA. The study recommends continued fiscal support, investment in public charging infrastructure, interest rate subvention for buses, and targeted financing support for smaller commercial operators. 'As India transitions from FAME schemes to PM E-DRIVE and other similar initiatives, policymakers must recognise that each EV segment requires tailored intervention,' Konda added. The report draws on panel data of 21,526 observations over 10 years, offering a first-of-its-kind empirical assessment of India's EV subsidy performance using econometric techniques such as difference-in-differences and synthetic control methods.
Time of India
28-05-2025
- Automotive
- Time of India
EV two-wheeler sales soared 34x in 4 years, but market share stuck at 4%: Study
New Delhi: Electric vehicle (EV) sales in India have grown rapidly across segments in the last decade, but adoption rates remain modest despite significant fiscal support, a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) has found. The report, From Incentives to Adoption, presents a 10-year review (2014–2023) of government subsidies and policy interventions under FAME-I, FAME-II, Production Linked Incentives (PLI), and state schemes, and assesses their effectiveness across five EV segments. In the electric two-wheeler (E2W) segment, sales jumped from 19,333 units in FY2019 to over 6.5 lakh units in FY2023. However, the adoption rate – the share of electric vehicles in overall two-wheeler sales – was only 4% by the end of 2023. 'FAME-II's higher subsidy intensity (28.65%) compared to FAME-I (14.32%) boosted absolute E2W sales by up to 9 times, but had limited impact on the overall market composition,' the report states. According to Charith Konda, Energy Specialist at IEEFA and one of the co-authors, 'The government should continue offering purchase subsidies to sustain momentum but clearly communicate a phased-down trajectory for the longer term.' In the electric three-wheeler passenger (E3WP) segment, early policy support under FAME-I drove a 10x market multiplier effect. Around 27,000 additional vehicles were directly attributed to subsidies under FAME-I, with total sales reaching 2.67 lakh units by March 2019. The segment, however, matured during the FAME-II period and showed limited incremental impact from later subsidies. The electric three-wheeler cargo (E3WC) category saw a market share rise from 0.03% in 2015 to over 31% by 2023. The study found this growth was largely driven by operating cost advantages rather than central subsidies. A 1% reduction in operating cost led to a 0.563% increase in sales, highlighting the role of business economics in commercial segments. In the electric four-wheeler commercial (E4WC) category, sales improved after FAME-II and PLI schemes were implemented. A one-standard-deviation increase in subsidy intensity led to a 5% rise in sales. However, the adoption rate was still less than 1%. States that implemented incentives saw 211% higher sales growth than those that did not. For electric four-wheelers in the private segment (E4WP), sales grew due to new model launches and consumer demand, but adoption rates remained below 2%. The report highlights the need for continuing support in this segment. The report found that both FAME-I and FAME-II failed to make a statistically significant impact on electric bus (e-bus) adoption. Only 4,766 units were subsidised against a target of 7,262, and the sector continues to face structural barriers such as limited financing access and high upfront costs. 'Coordinated central and state action, pairing targeted purchase incentives, infrastructure rollout, and manufacturing scale-up can help electric cars compete effectively with their counterparts in India's commercial vehicle market,' said Saurabh Trivedi, Sustainable Finance Specialist at IEEFA. The study recommends continued fiscal support, investment in public charging infrastructure, interest rate subvention for buses, and targeted financing support for smaller commercial operators. 'As India transitions from FAME schemes to PM E-DRIVE and other similar initiatives, policymakers must recognise that each EV segment requires tailored intervention,' Konda added. The report draws on panel data of 21,526 observations over 10 years, offering a first-of-its-kind empirical assessment of India's EV subsidy performance using econometric techniques such as difference-in-differences and synthetic control methods.
The Hindu
27-05-2025
- Business
- The Hindu
First batch of five electric buses arrives in Puducherry; trial run in a few days
After a long wait, the first batch of five electric buses, including a prototype, have arrived in Puducherry from Hyderabad. Another bus is expected this week. The low-floor buses supplied by Evey Trans Private Limited, a subsidiary of Olectra Greentech, reached Puducherry on Monday (May 26, 2025) and is aimed at strengthening the public transport sector's shift to electric vehicles. Commuters in Puducherry and its suburbs can now expect an improved and hassle-free travel experience, thanks to the modern features of these electric buses, officials said. The charging station for the electric buses is being established by Evey Trans Private Limited on a 25,000 sq. ft. site belonging to the Puducherry government on Maraimalai Adigal Salai. A major portion of the work is completed, and the facility will be ready in the next two weeks. According to Transport Commissioner A.S. Sivakumar: 'As many as five buses have arrived, while another bus is expected this week. The remaining 19 buses will be inducted in a phased manner before July-end. These buses have been brought in under the FAME-II scheme of the Government of India.' 'The 25 buses (10 AC and 15 non-AC) are 9-metre buses and will be run under Gross Cost Contract (GCC) in Public-Private Partnership (PPP) model. The ₹23-crore seed funding from the Smart City project will be utilised for the payment on per km basis along with ticket revenue. The buses will ply on 15 tentative routes within urban areas, and will be operated under a Viability Gap Funding model.' The prototype of the bus will be on a trial run for a few days to assess its technical and mechanical strength. It will ply on designated routes for a few days without any passengers to check single charging range and other practical aspects. The buses will then be formally flagged off by the Lt. Governor and Chief Minister, and be available for city residents. Tentative routes The buses will ply on two routes — the first one starts from the railway station and ends at the airport, and goes through the old bus stand, new bus stand, Indira Gandhi square, Rajiv Gandhi square, and Jeeva colony. The second route starts from Puducherry to the airport, and will ply through the railway station, Government General Hospital, Ajantha signal, Karuvadikuppam, and Lawspet. With the charging station being set up by the operator getting ready, Evey Trans Private Limited has planned to charge the buses at a facility run by another private operator near the toll gate at Morattandi. This company already operates electric buses from Puducherry to Chennai, and the facility will be used for charging buses overnight, Mr. Sivakumar said. The upcoming charging station includes allied infrastructure with annual fleet-level guaranteed operations of 200 km per day per bus, for a period of 12 years. The operator is to foot the electricity cost and all maintenance costs of the buses. The Puducherry Road Transport Corporation (PRTC) or Puducherry Urban Transport Agency (PUTA) will be responsible for the fare collection and passenger tax on tickets, while all other permissions and clearances, including registration, insurance, stage carrier permit, Motor Vehicle Tax, and GST on kilometre charges, will be borne by the operator. An escrow account has been created and all revenue generated and the income accruing from the operation of the buses will be deposited into the account. This would help in rationalising the prices that would be paid on a per kilometre usage. The battery-operated buses have a life of 6-7 years and cover over 200 km in one charge. It takes around six hours to charge the buses.
Time of India
14-05-2025
- Automotive
- Time of India
Tata Motors sticks to EV leadership goal despite setback
New Delhi: Tata Motors reported a 10.7 per cent year-on-year decline in electric vehicle (EV) sales, reaching approximately 57,616 units in FY25, compared to 64,530 units sold in the previous year. The drop was largely attributed to a slowdown in fleet sales, with the company citing withdrawal of FAME-II subsidy and operational challenges faced by fleet operators that reduced their overall contribution. However, the maker of the Tiago and Tigor reaffirmed that mainstreaming EVs remains a top priority. Tata Motors is advancing its EV portfolio strategy with upcoming models like the Sierra and Harrier EV, along with planned upgrades to existing models, according to PB Balaji, Group Chief Financial Officer. The carmaker managed to maintain its market leadership in EVs at 55.4 per cent, even though it has fallen drastically from the earlier 80 per cent. This may be attributed to increased competition from JSW MG Motor and slower interest for its own models. Its EV penetration stood at 11 per cent while CNG was at 25 per cent in FY25. On a full year basis, the PV business revenue declined by 7.5 per cent. 'The decline in revenues was primarily on account of decline in hatches volumes.' Overall, Tata Motors has turned net cash positive in the financial year ended March 2025. In 2023, ETAuto reported about the plan and how its Indian business delivered a net debt that touched its lowest in 15 years. The company's free cash flow (automotive) for the year, was at ₹22.4K crore, as compared to ₹26.9K crore in FY24, owing to cash profits and favourable working capital. Commercial Vehicles (CVs) Tata Motors accounted for 37 per cent of the domestic CV retail market in FY25. Balaji said despite a decline in revenues, the company noted improved profitability in this segment—a development it described as a significant milestone, marking possibly the first such improvement in 25 years. Moving ahead, he sees all fundamentals pointing to stability in the CV segment, with market conditions largely supportive. However, Tata Motors acknowledged facing stress within parts of its portfolio during FY25. The company identified its small CV business as an area requiring strategic intervention and corrective action. Additionally, Tata Motors has received shareholder approval for its proposed demerger-- which will separate its CV and PV business into independently listed entities-- on May 6. The next step involves seeking clearance from the National Company Law Tribunal (NCLT), with an order expected sometime in the second quarter of FY25. Subject to NCLT approval, the company anticipates setting July 1 as the appointed date and October 1 as the effective date for the demerger. Meanwhile, internal transition processes are progressing smoothly. The company confirmed that employee allocation between the resulting entities has been completed, ensuring operational readiness ahead of the formal split. Jaguar Land Rover (JLR) The recently concluded India-UK Free Trade Agreement (FTA) is expected to benefit the Tata Motors' luxury segment, Jaguar Land Rover (JLR), as the automotive import tariffs have been reduced from over 100 per cent to 10 per cent under a quota system. However, the duty-free quota for electric vehicles remains limited to only a few thousand units. Balaji said the implementation of the FTA will significantly enhance customer access to JLR vehicles in India by enabling quicker availability of global models at more competitive prices. Tata Motors brings Range Rover models in India via CKD (completely knocked down) route. The current cars that are already there in India, the Range Rover franchise, which is the Range Rover, Range Rover Sport, Evoque, and the Velar, these are already being manufactured in India on a CKD basis, so these won't be impacted by this FTA that is coming in. 'This will support sustained performance for JLR in the Indian market going forward,' he noted. However, Balaji clarified that any decision regarding local manufacturing of JLR vehicles in India remains a longer-term strategic consideration for the company. Commenting on JLR's outlook in the US amid ongoing trade tensions, Balaji welcomed the move to lower tariffs on UK auto exports to 10 per cent, saying it is 'directionally on the right track.' However, the company is awaiting the fine print in terms of timings, so we must wait to also need a few clarifications. Tata Motors acknowledged that sales of the Land Rover Defender in the US have been impacted by existing tariffs. The company is actively exploring ways to mitigate the effect of these tariff increases. 'We are working on strategies to offset the impact, while remaining optimistic about the possibility of a trade agreement between the EU and the US—similar to the one already in place between the UK and the US,' said a company spokesperson. 'We are hopeful that such a deal will materialise sooner rather than later.' Looking ahead, Tata Motors expects its investment outlay to remain steady at £18 billion over a five-year period, with funding sourced primarily from operational cash flows. The company also stated it will continue to closely monitor and evaluate the impact of evolving global challenges on its operations and strategy.
