Electric Two-wheelers Might Become Quite Expensive In Coming Months In India, Claim Reports

Published  May 19, 2023   0
S Staff
Electric-Two Wheelers

An agreement has been made to decrease the subsidy to 15pc for electric two-wheelers that will extend the scheme until February-March

Some unnamed officials in the Ministry of Heavy Industries have told the media that the prices of electric two-wheelers such as Ather, Ola and others might become very expensive in India soon. This is because the spending for electric two-wheelers has been planned to escalate by the officials from the current Rs 2000 Crore under its FAME-II scheme. In fact, planning has been done to decrease the subsidy per vehicle.

The anonymous official has said that currently there is no plan to extend the FAME-II scheme after March 2024 or the unleash of new FAME-III, reported by PTI. Back on Tuesday, a stakeholders meeting was arranged by the government where 24 e-two wheeler companies registered under FAME-II attended. It was decided that the incentives demanded might be kept at Rs 10,000 per kWh of battery capacity, along with a cap of 15 percent of the ex-factory price from 40 per cent at present, reported by the Mint.

The unnamed official told Mint, “We had called a meeting of 24 registered OEMS of electric two-wheelers on Tuesday. It was decided that we will transfer the unutilised subsidies to the tune of ₹1,500 crore from 3 Wheelers and 4 Wheelers to 2 Wheelers but it was found that at the current rate of disbursal (40 pc cap on ex-factory price), the scheme will end in two month."

During the meeting, most of the companies wanted that for a longer time period the subsidy must be allowed even if it ends. Nonetheless, to meet the demand of the OEMS, an agreement has been made to decrease the subsidy to 15pc for electric two-wheelers that will extend the scheme until February-March. Mahendra Nath Pandey, the Union Minister of Heavy Industries added that the government will continue its effort to provide assistance as long as the demand for electric two-wheelers gains momentum. The government is committed to decrease carbon emissions and boost sustainable growth.

According to the PTI, both the industry stakeholders and the government is working closely to introduce additional incentives and policies that will augment the growth rate and adoption of electric vehicles throughout the country.