The Ministry of Heavy Industries (of Govt. of India) has announced an increased demand incentive of INR 15,000 per kWh for electric two-wheelers — up from the earlier uniform incentive of INR 10,000 per KWh for all EVs, under the FAME II scheme. Also, the cap on incentives for electric two-wheelers has been raised to 40% of the cost of the vehicle — up from 20%.
The Society of Manufacturers of Electric Vehicles (SMEV) has welcomed the revised FAME II rates. Sohinder Gill, Director General of SMEV, had the following to say —
It’s an important and admirable decision taken by the government, a move that will bring down the prices of electric two-wheelers nearer to the IC vehicles and remove one of the biggest blockades of the high sticker price of electric two-wheelers. A city speed electric scooter with a range of 100 km/charge will now cost less than INR 60,000 and a high-speed scooter with a range of 80 km will come nearer to the price tag of INR 1 lakh. Together with the other important factors like extremely low running cost, low maintenance and zero-emission, such price levels will surely spur a substantial demand for electric two-wheelers.
— Ather Energy (@atherenergy) June 11, 2021
Bengaluru-based Ather Energy has announced a price cut of INR 14,500 for its 450X scooter.