Want to buy electric scooter? Hurry up, 2-wheeler EVs to get costlier from June 1

Here is why customers will have to pay more for 2-wheeler EVs from the first day of next month.

Published on: May 30, 2023, 14:07:25 IST

By HT News Desk, New Delhi

Prefer HTon Google

Share via

Copy link

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.

Ola Electric S1 Pro electric scooters lined up (Used only for representation)

What is the issue?

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.

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.

(With PTI inputs)

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Electric Vehicles

Get the latest Car and Bike News, new launches, upcoming vehicles, reviews, prices, features and comparisons. Stay informed about everything happening in the automobile industry.