Government revises FAME II subsidy; electric two-wheelers to get cheaper

- FAME II scheme revised for electric two-wheelers

- Subsidy increased by 50 per cent now

- Only five per cent of electric scooters meet the criteria

The Indian government has made revisions to the FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme which has resulted in increased subsidies for electric two-wheelers. Rolled out in 2019, FAME II subsidy was previously set at Rs 10,000 per kWh which has now been increased to Rs 15,000 per kWh; a hike of as much as 50 per cent. 

It should be noted that there are certain criteria an electric two-wheeler needs to meet to be eligible for the subsidy. The top speed should be more than 40kmph while the minimum battery range needs to be 80kms. Moreover, the new scheme has also upped the cap on incentives to 40 per cent of the cost of the vehicle from the previous 20 per cent. 

The new FAME II subsidy policy undoubtedly seems quite favourable for electric two-wheeler makers and buyers, and it should accelerate the adoption of electric mobility in India. But it’s also ironic that very few existing electric two-wheelers in India meet the set criteria. According to a report by CRISIL, around 95 per cent of the electric scooters in India are not eligible to receive the subsidy. Amongst the five per cent that fit the criteria include the Ather 450X and the Okinawa Praise Pro.