If you’re considering purchasing an electric scooter in India, it’s important to be aware that the prices of popular brands such as Ola, Ather, and others are expected to increase in the near future. This development is a result of potential changes to the subsidy program known as the Faster Adoption and Manufacturing of Electric Vehicles Phase II (FAME-II).

The Ministry of Heavy Industries, which oversees the FAME-II scheme, is considering boosting the budget allocated for e-two-wheelers. However, at this point, there are no plans to extend the FAME-II scheme beyond March 2024 or introduce FAME-III, according to reports.

Understanding the FAME-II Subsidy Program

The FAME-II subsidy program was launched by the Indian government to accelerate the adoption and manufacturing of electric vehicles in the country. It provides incentives to electric vehicle buyers in the form of a price reduction. Under this scheme, the subsidy amount is determined based on either 40% of the ex-showroom price or Rs 15,000 per kWh of battery capacity.

Proposed Changes and Stakeholders’ Meeting

Following consultations with 24 electric two-wheeler original equipment manufacturers (OEMs) registered under the FAME-II scheme, a stakeholders’ meeting was held recently to discuss potential modifications to the subsidy program.

During the meeting, it was decided that the demand incentive would remain at Rs 10,000 per kWh of battery capacity, but with a cap of 15% of the ex-factory price, instead of the current 40%. This proposed change aims to strike a balance between promoting the adoption of electric two-wheelers and managing the budget for subsidies effectively.

Proposal Presentation and Potential Impact

According to an official, there is a plan to present a proposal to the Programme Implementation and Steering Committee (PISC) to make modifications to the FAME-II scheme in the near future. If approved, these changes could have an impact on the prices of electric scooters in India, potentially leading to an increase as the subsidy amount per vehicle decreases.

Stay Informed and Make Informed Decisions

As a potential buyer, it’s important to stay updated on any developments regarding the FAME-II subsidy program and its modifications. These changes could have implications for the prices and incentives associated with electric scooters in India.

While the government aims to promote the adoption of electric vehicles, it also needs to manage the subsidy budget effectively. Therefore, it is advisable to make purchase decisions considering the potential changes in subsidies and their impact on electric scooter prices.