If you are planning to buy an electric scooter, here is what you must know: from the first day of the coming month, 2-wheeler electric vehicles (EVs) will become costlier. This is because of a reduction in subsidy provided by the Union government to electric 2-wheelers registered on or after June 1.
What is the issue?
Ola Electric S1 Pro electric scooters lined up (Used only for representation)
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Last week, the Ministry of Heavy Industries, Government of India, notified the changes. Under these, the subsidy for electric scooters under the ministry-backed FAME-II (Faster Adoption of Manufacturing Electric and Hybrid Vehicles in India) scheme is being reduced from June 1.
This means that once the changes are effective, the maximum subsidy for 2-wheeler EVs will come down to 15% of the ex-market price of the vehicle, from the existing 40%. The subsidy, on the other hand, will be ₹10,000 per kWh of the EV's battery capacity, instead of the current ₹15,000..
What is FAME-II?
The scheme came into effect on April 1, 2019 for a period of 3 years, and now stands extended by another 2 years, up to March 31, 2024. Under phase 2, the total outlay is ₹10,000 crore to provide incentives to EV buyers to enable wider adoption.
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While the scheme is primarily for 3-wheeler EVs, 4-wheeler EVs, and e-buses, benefits under it are available to privately owned registered electric 2-wheelers as well.
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While the scheme is primarily for 3-wheeler EVs, 4-wheeler EVs, and e-buses, benefits under it are available to privately owned registered electric 2-wheelers as well.
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