Prices of electric two-wheelers like Ather, Ola and iQube are going to rise in India, as the subsidy on them under the FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme has been reduced from June 1, 2023.
The heavy industries ministry has notified the changes. For electric two-wheelers, the demand incentive will be Rs 10,000 per kWh. The cap on incentives for electric two-wheelers will be 15 per cent of the ex-factory price of vehicles from 40 per cent at present.
The Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) India scheme commenced on April 1, 2019, for a period of three years, which was further extended for a period of two years up to March 31, 2024.
The total outlay for FAME Scheme Phase II is Rs 10,000 crore to provide incentives to buyers (end users or consumers) of electric vehicles to enable wider adoption, which may be encouraged as a purchase price. The scheme is exclusively for public and commercial transport in the segments of electric three-wheelers (e-3W), electric four-wheelers (e-4W), and electric buses.
The benefit of the incentive is available to privately owned registered electric two-wheelers (e-2W).
However, Union Minister of Heavy Industries Mahendra Nath Pandey has earlier said that as the demand for e-two-wheelers continues to grow, the government is committed to providing the necessary support to the industry to ensure sustainable growth and reduce carbon emissions.
The government is working closely with industry stakeholders to develop policies and incentives that will encourage the adoption of electric vehicles across India, the minister added. The ministry is striving to align itself with Prime Minister Narendra Modi’s commitment to Net Zero by 2047 and is taking proactive steps to promote sustainable transportation in the country, he said.
The consensus reached during the stakeholder consultation signals a positive step towards sustainable transportation solutions in India. With continued efforts and collaboration between the government and industry, India can become a global leader in sustainable transportation and reduce its dependence on fossil fuels.
Union Minister of Heavy Industries Mahendra Nath Pandey said that as the demand for e-two-wheelers continues to grow, the government is committed to providing the necessary support to the industry to ensure sustainable growth and reduce carbon emissions. This move will not only benefit the environment but also contribute to building a stronger and more resilient economy, the minister said.
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