In this financial year, the Indian Government stopped giving incentives on electric two wheelers after the misusing of FAME-ll subsidy’s rules.
The Indian government offers Rs 15,000 incentives per kWh battery, capped at 40% of the total vehicle cost. The incentive provides on any electric vehicles retail price. The company should submit within 45 to 90 days after sale of EVs. But the government stopped to give this incentives
from early this year. As per govt report , some major companies had submitted subsidies without meeting the localisation rule.
After this incident, the government may not consider extending the FAME-ll scheme up to the year 2024.
The Ather Energy official said,” After the subsidy stopped, electric two wheeler sales may decrease suddenly. So, some major two wheelers manufacturing companies are developing and setting up their own manufacturing plant to make some parts of EVs and also make the two wheelers cost effective. Of course, it is a journey and it takes time. ” He said to match up the level of manufacturing, we need 3 to 4 years.
If the government start to give subsidy again and increase this subsidy amount under the FAME-ll scheme then electric two wheelers sales may increase triple time. As per report, there are 6 lakh units of electric two wheelers may sales in the ongoing financial year. However, electric vehicles penetration at less than 5% in the market.