EV-bus manufacturers worried after DHI makes sporting FAME logo must in buses

| | New Delhi
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EV-bus manufacturers worried after DHI makes sporting FAME logo must in buses

Thursday, 30 June 2022 | Pioneer News Service | New Delhi

Months after the Department of Heavy Industries (DHI) notified an order making it mandatory for the Ev-buses operator(s) to place the FAME logo on both the sides of the vehicles prominently, the manufacturers are feeling the pinch with advertisement revenues taking a significant hit, according to sources close to funding agencies/lenders.

The order released by the DHI makes it compulsory for the manufacturers to get the FAME logo on the buses, at the spots which the manufacturers earlier used to lease out to potential advertisers for some revenue.

A couple of industry insiders told The Pioneer on the condition of anonymity that this move has not gone down well with the operator(s) and has caused considerable losses for them as per early assessment.

Earlier in the contracts, advertisements were allowed on the FAME contracts-awarded products, ev-buses mostly, and the revenue generated from them used to go to the manufacturers or the Operator. The latest move has left them squandering for options to deal with it, with little or no mechanism to raise their concerns. According to sources, the new directions have been laid out retrospectively which impact the revenue. Industry experts see the move by the government as its intent to reduce overall cost for the state governments.

A top official of one of the major lending agencies said the manufacturers don't have any issue with keeping the FAME logo on buses but with size and placement of the logo, which directly impacts their revenues. The loss becomes significant in the long run as the buses are to be operated and maintained for 12 years.

"Can the OEMs/Operators manage for 12 years making losses continuously? It might lead to a situation where the manufacturers start showing their inability to operate the buses," another official said, adding the "purpose of promoting Green mobility is getting defeated in the process".

The Indian EV sector is seeing a massive boom with both central and governments going full throttle in acquiring electric buses in their bid to ensure clean and green transportation. States after states are placing big orders for electric buses.

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