Electric two-wheelers become cheaper in India-FAME II incentives 

The Department of Heavy Industries has announced incentives for electric two-wheelers in India. The Center in its notification had announced the amendments made in the FAME-II (faster adoption and manufacturing of electric vehicles). Let us know in detail about electric two-wheelers become cheaper in India. 

As per the Gazette notification issued by the government, the incentive for electric two-wheelers has been increased to ₹15,000 per kWh, up by ₹5,000 per kWh from the earlier subsidy rate. Earlier the subsidy rate for electric two-wheelers was Rs 10,000/kWh and now it is Rs 15,000/kWh.

Electric two-wheelers become cheaper

This step from the Indian government will definitely bring massive change and increase in the adoption of electric vehicles. It will also help India to achieve the target of making India an electric vehicle country by 2030. Currently, electric vehicles are much costlier than ICE vehicles. But with the reduction of the prices and adding up the incentives will directly help the customers to buy an electric two-wheeler at some reduced price.

Ather Energy one of the leading and fastest-growing electric two-wheeler manufacturing company was the first to announced the incentive to its customers by reducing the price of its 450X electric scooter to 14,500 rupees.

Govt of India doubles down on its commitment towards #goingelectric. Subsidy for electric 2W increases under #FAME2 incentives.

Which means a whopping ₹14,500 additional subsidy on the #ATHER450X. Haven’t booked it yet? Now seems like a good time: https://t.co/HNCOb2bGc9 pic.twitter.com/t2qD3c5Qq6

— Ather Energy (@atherenergy) June 11, 2021

The notification stated that “Aggregation will be the key method for bringing the upfront cost of 3W EV at an affordable level and at par with ICE 3-Wheelers. EESL will aggregate demand for 3 lakh Electric 3 Wheelers for multiple user segments. Details will be worked out by EESL for implementation.”

“For Electric Buses, 4 million-plus cities (Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune) will be targeted. EESL will go for aggregation of demand in these 9 cities for remaining E-buses under the Scheme on an OPEX basis. The details shall be worked out by EESL for implementation.”

Demand incentive will be Rs 15000 per kWh on electric two-wheelers 

For the electric two-wheelers, the demand incentive will be Rs 15000 per kWh and the cap on incentives for Electric 2 wheelers will be 40% of the cost of vehicles.

So, if you already planned to buy an electric vehicle then you can save some money and gift yourself a smartphone or an iPod or good earphones. 

Also read related article: Electric vehicles sales, transportation & policy initiatives

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