On Saturday, electric two-wheeler manufacturers welcomed the government's decision to enhance subsidies for such vehicles by 50% under the FAME II scheme. They termed it as a "phenomenal move", claiming it will be a game-changer in the adoption of environmentally-friendly vehicles.
The government modified the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) on Friday, raising the demand incentive for electric two-wheelers to $15,000 per KWh from the previous uniform subsidy of $10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids, except buses.
"The revision in the FAME (II) policy, increasing the subsidy by 50 per cent per KWh, is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million-plus units by 2025," Tarun Mehta, CEO and co-founder of Ather Energy, said in a statement.
The Department of Heavy Industries capped incentives for electric two-wheelers to 40% of the vehicle's cost, up from 20% previously, as per the latest modification, reported The Hindu.
Customers who choose to buy electric two-wheelers in India will benefit directly from this decision. Electric bikes and scooters in India will be cheaper in the coming days as a result of these modifications.
Also Read: Kerala-Based Brand 'Thooshan' Launches Edible Cutlery To Fight Battle Against Single-use Plastic