Electric bikes and scooters: As the incentive cap has been reduced to 15% of the EV’s ex-factory price from the 40% benefit previously offered, electric two-wheelers in India are expected to become more expensive as of June 1, 2023. That’s a big reduction, which will inevitably result in increased vehicle pricing.
Electric bikes and scooters to get costlier
The Ministry of Heavy Industries (MHI) announced that these adjustments will be effective as of June 1, 2023, not June 11, as previously reported, in a gazette notification published on May 21.
For the three-year duration of the FAME-II programme, the government set aside Rs 10,000 crore. The programme was extended for a further two years, ending in June 2021.
In June 2021, the plan to charge Rs 15,000 per kWh rather than Rs 10,000 became effective. In order to boost demand for electric two-wheelers, this was done. The maximum incentive cap was also raised in conjunction with this, rising from 20% to 40%. The most recent ruling returns the plan to its pre-2012 state.
EVs in India
According to information from the FAME dashboard, as of May 22, 2023, 988,676 electric two-wheelers had been sold in India overall. The goal of FAME-II was to fund 55,000 electric passenger vehicles, 7,090 electric buses, 500,000 electric two-wheelers, and 1 million electric three-wheelers. The goal of one million automobiles is almost entirely within reach for the two-wheeler market.
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