The Society of Manufacturers of Electric Vehicles (SMEV) has asked NITI Aayog to increase the incentives on electric scooters to Rs 40,000.
NITI Aayog is a think-tank institute responsible for advising the government on matters of economic policy-making process. The commission has currently been tasked with preparing a futuristic vision and policies for electric vehicles in the country. Under the current FAME policy, electric scooters benefit from incentives of Rs 22,000 which has helped bring down the cost of these vehicles. However, SMEV has now asked for this incentive to be increased to Rs 40,000.
Despite the existing incentives, modern electric scooters powered by lithium-ion batteries cost up to Rs 80,000, making them relatively more expensive than the regular petrol-powered counterparts. This has hampered their reach among the masses. And while the regular electric scooters with lead acid batteries are way more affordable, their limited range, efficiency and performance discourage customers from opting for them.
As of now, the sales of electric scooters stand at 15,000 to 20,000 units a year. SMEV expects the number to go up significantly with the increase in incentives and an eventual drop in the prices of electric scooters.
