- 14 Jun 2024
- ICICI Securities
GOVERNMENT TO ANNOUNCE FAME-3 SCHEME ALONGSIDE BUDGET IN JULY 2024
News: As per media sources, government is likely to roll out FAME-3 scheme promoting penetration of Electric Vehicles domestically at the time of upcoming Union Budget in July 2024. It is expected to be rolled out with an outlay of ~₹ 10,000 crore and shall include demand incentives for buying Electric Vehicles as well as augment charging infrastructure domestically.
Views: This is broadly on expected lines and bodes well for the nascent domestic EV industry which needs policy support to accelerate the penetration of green mobility domestically. It is also a sign of relief for the industry as Fame-2 scheme concluded as of FY24 end and interim policy (Electric Mobility Promotion Scheme 2024) was for four months only (Apr’24-July’24 at a total outlay of ₹ 500 crore). It is positive for companies under our coverage such as Hero MotoCorp, Bajaj Auto and Tata Motors.
Impact: Positive