Latest FAME-II amendment sees increased subsidy for electric two-wheelers
In an effort to better the growth of electric two-wheelers in the country and achieve 100 per cent e-mobility by 2030, the government has recently revised the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) scheme, which should come as delightful news not only to those in the EV manufacturing business, but to us all.
The latest FAME-II revision sees an increase in the incentive of electric two-wheelers to Rs 15000/kWh from the previous Rs 10,000/kWh for all EVs that fall under the criteria, with a cap of 40 per cent of the cost of the vehicle, which is also up from the previous 20 per cent. To bring revised costs into perspective, Ather Energy's flagship 450X electric scooter will now cost a cool Rs 14,500 less after the subsidy revision. However, one should note that not every electric two-wheeler will benefit from this scheme, just the ones that comply with FAME-IIs specified parameters of minimum 40kmph top speed and 80km range.
In line with the latest FAME-II revision, Bhavish Aggarwal, Chairman and Group CEO, Ola stated, "I welcome the government's amendment to the FAME II subsidy. The incentive of Rs 15,000 per KWH will help make electric 2 wheelers affordable for many more consumers. I believe India has the potential to lead the world in sustainable mobility and become a big market as well as a global EV manufacturing hub. Our Ola Futurefactory will be coming online soon and we will be aggressively pricing our range of electric scooters. With the new policy incentives, we will be able to accelerate the global transition to sustainable mobility even faster."
Suhas Rajkumar, Founder and CEO of Simple Energy commented, "The increase in the subsidy is very exciting and positive news for the two-wheeler EV industry. Manufacturers like us will benefit as this move will significantly improve the unit economics and accelerate the EV adaption as it becomes much more affordable.
This will be the right push for the industry which is still considered to be at a nascent stage. Our pricing would also be affordable as the announcement has come in right before the launch of our flagship product (Simple Energy Mark 2) on 15th August this year."