- Likely to be reduced to Rs. 10,000 per kWh
- Might be capped at 15 per cent of the ex-showroom price
- No plans to extend the FAME II as of now
It seems that the electric mobility landscape in India could soon see a major change as there are rumors regarding the FAME II subsidy being lowered for electric two-wheelers. This would lead to an increase in their overall price and here’s what you should know about the changes in the subsidy.
As per the probable incoming change in the norm, electric two-wheelers are likely to avail of a subsidy of only Rs. 10,000 per kWh of the battery capacity compared to the previously set amount of Rs. 15,000. Moreover, the subsidy could also get a cap of a maximum of 15 per cent of the ex-showroom price, unlike the previously set 40 per cent.
For reference, the Ather 450X Pro Pack currently gets a subsidy of Rs. 55,500 resulting in an ex-showroom price of Rs. 1.28 lakh (ex-showroom Bengaluru). But once the new norm comes into action, the asking price could rise by Rs. 18,500 as the subsidy amount would go down to Rs. 37,000. Similarly, other electric scooters and motorcycles that are eligible for the FAME II could also see a surge in the asking price.
The government currently has expressed no interest in extending the FAME II deadline post-March 2024 or introducing FAME III. However, the reduced amount could help in stretching the current subsidy allocation until next year.
