New Delhi: India’s electric two-wheeler market has seen a significant sales increase of 34.42% in the third quarter of Fiscal Year 2024 (Q3 FY 24) compared to the preceding quarter (Q2 FY 24), indicating a robust growth in the sector, as per the data from VAHAN.Additionally, there was an 11.16% year-on-year growth in Q3 FY 24 compared to the same period in the previous fiscal year (Q3 FY 23).The upward trend in the electric two-wheeler market is further evidenced by the impressive sales figures in the ongoing fourth quarter (Q4 FY 24), with 76,301 units already sold, pointing to a strong finish for the fiscal year.Ahead of the Union Budget 2024-25 presentation, addressing the joint session of the Lok Sabha and Rajya Sabha, President Droupadi Murmu said, “About 2 thousand electric vehicles were sold in 2014-15. Whereas, till the month of December for the year 2023-24, about 12 lakh electric vehicles have been sold.”As the industry looks forward to the upcoming budget, there is heightened anticipation among stakeholders for potential policy developments. Key among these is the expected introduction of the FAME III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme.“We are optimistic about potential government initiatives like FAME III following the expiration of FAME II …FAME III is poised to significantly impact FY25 EV sales by fostering a conducive environment. Anticipated incentives and subsidies will bolster consumer affordability, steering a surge in electric vehicle adoption. The policy’s support is likely to encourage manufacturers to innovate and introduce diverse, cost-effective models,” said Ayush Lohia, CEO, Lohia Auto. Raman Bhatia, Founder & Managing Director, Servotech Power Systems Ltd said “Expectations center around potential FAME 3 schemes and a revision of GST rates for electric two-wheelers. Calls for a uniform 5% GST on all EV spare parts, aligning with the 5% GST on vehicles, echo the industry’s aspiration for a more equitable tax structure.” According to Nishanth Dongari, Founder, PURE EV, “EV 2W and overall EVs have reached a matured stage now and there will be least impact on the growth of EV sales even if FAME 2 is expired and subsidies are tapered in FAME 3 or even completely removed. EV 2W have already become economical in-terms of the total cost of ownership wrt ICE 2W, and the growth will be more driven by EASY EMI/Finance solutions rather than subsidy driven.”The implementation of FAME III is poised to significantly bolster the electric vehicle sector, offering incentives that could benefit manufacturers and consumers, and potentially accelerate the adoption of electric two-wheelers across the country.