The government’s decision to increase incentive on electric two-wheelers (e2W) by 50 per cent (under Fame II scheme) will be a game changer for the sector, say EV makers.
The government had on Friday made a partial modification of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II), including increasing the demand incentive for electric two-wheelers to Rs 15,000 per KWh from the earlier uniform subsidy of Rs 10,000 per KWh for all EVs, including plug in hybrids and strong hybrids except busses.
The department of heavy industries also capped incentives for electric two-wheelers at 40 per cent of the cost of vehicles, up from 20 per cent earlier.
The government s continued support to drive adoption of EVs, with a keen focus on locally built electric two-wheelers will make India the manufacturing hub of EVs, said Ather Energy CEO and Co-founder Tarun Mehta