Government’s Faster Adoption and Manufacturing of Electric Vehicles in India (FAME II -Revised) has increased subsidies for electric two-wheelers. This initiative is expected to significantly reduce the price gap between electric two-wheelers and internal combustion engine (ICE)-based two-wheelers.
Due to this new incentive. A minimum of 10-12 percent will be reduction in the cost of ownership of electric tow wheeler.
The revised FAME II policy is expected to push up demand for electric two-wheelers, considering the segment witnessed a dip in FY 21.
EV manufacturers have welcomed this move and have expressed hope that this policy is expected to push up demand for electric two-wheelers.
“We welcome the government’s continued support to EVs. Sustainable mobility solutions are very important for the future and TVS is investing significantly behind this. The improved incentives for electric two-wheelers will increase penetration. Such policy direction should lead to indigenous development of future technology,” said Sudarshan Venu, Joint Managing Director, TVS Motor Company.