As the FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme approaches its conclusion in March next year, Ravneet S Phokela, Chief Business Officer at Ather Energy, expressed contentment with government support and current subsidy levels. However, Phokela stressed the importance of extending the scheme for another three to five years to accelerate electric vehicle (EV) adoption.
Phokela emphasized the necessity of policy predictability for investment planning in the electric two-wheeler segment to boost electric mobility. “Two requirements, extend the period of time and importantly, let there be policy predictability,” he stated, outlining Ather Energy’s wishlist for FAME III.
Ather Energy, with significant investment from Hero MotoCorp, envisions achieving 100% electrification of the domestic two-wheeler market by 2030 and plans to export to markets similar to India in the near future.
Phokela urged for stability in subsidy structures, saying, “Unpredictability is not good for business because my business plans are based on a certain assumption of subsidy. If the assumption changes, then the plans change, and if I’m not certain about my plans, I can’t make investments.” Ather Energy had intended to establish a third plant with an annual capacity of 10 lakh units but has not yet finalized a location.
Regarding the duration of subsidies for electric two-wheelers, Phokela recommended, “Three to five years…but what we recommend is that longevity is more important than more subsidy in one year. So, this finite amount of money can be spread out over three to four years, (rather) than busted in one year and be done with it.”
Phokela also revealed Ather’s upcoming export plans, stating that while there has been interest from overseas markets, the company has focused on domestic opportunities. However , said “we will start exporting soon enough and if all goes well, we want to make an announcement as early as next two months.” The company is eyeing markets similar to India for its initial overseas foray.
