- Subsidy cap reduced to 15 per cent
- Manufacturers get a subsidy of Rs. 10,000 per kWh
- New amendment to be effective from 1 June
Electric vehicles are set to get expensive as the Ministry of Heavy Industries has cut the FAME-II subsidy. The subsidy cap has been reduced from 40 per cent previously to just 15 per cent for electric two-wheelers. Electric two-wheelers can now avail of a subsidy of Rs. 10,000 per kWh of the battery capacity as against the Rs. 15,000 previously. This new amendment will come into force from 1 June, 2023.
To give a clearer perspective, the Ather 450X Pro Pack previously received a subsidy of Rs. 55,500, thus bringing its price tag to Rs. 1.28 lakh (ex-showroom Bengaluru). However, with the new norms in effect, this subsidy will reduce to Rs. 37,000. A similar effect will be seen on the rest of the electric scooters and motorcycles sold in the Indian market.
Notably, the electric two-wheeler has to meet the set criteria to be eligible for the subsidy. These include a minimum range of 80km, a top speed of at least 40kmph, and a predefined level of localisation. Various state governments also provide an additional subsidy. These, however, vary from one state to another.
