The electric two-wheelers are slowly accomodating a bigger space in the Indian market. With an aim to support the right models, the Department of Heavy Industry (DHI) has made vital revisions to the FAME II scheme. The incentive for electric two-wheelers has been increased to Rs 15,000 per kWh. Earlier it was Rs 10,000 per kWh. Now it has been increased by Rs 5000 per kWh.
Talking about the FAME II scheme, it was introduced in 2019. According to this scheme, the electric two-wheelers should possess parameters like minimum top-speed, acceleration, range per charge, & energy consumption efficiency so as to qualify for FAME II benefits. Having said that, the electric scooter should deliver a minimum range of 80 km on a single charge and should have a top speed of at least 40 kmph.
“The revision in the FAME policy, increasing the subsidy by 50 percent per kWh is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock over 6 million units by 2025. Ather Energy already has plans to expand distribution to 30 cities in the next 6 months and this increased subsidy will help accelerate consumer demand, immensely. 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,” as commented by Tarun Mehta, CEO, and co-founder of Ather Energy.
This move is going to help the customers who choose to buy an electric two-wheeler in the country. One of India’s fastest-growing electric two-wheeler manufacturing companies, Ather Energy is the first to pass on the incentive to its customers. The company has further announced that Ather 450X will now cost Rs 14500 less after the FAME II subsidy revision.