Picture for reference. Credit – iGuru Crazy

The subsidy on electric two-wheelers has been increased by 50 percent under the FAME II program – up to 40 percent of the total cost of the vehicle

For a year and a half, the electric vehicle (EV) segment has experienced significant growth, especially for two-wheelers. With new manufacturers entering the Indian automotive market, the electric vehicle space has shown tremendous promise for the future.

The Indian government is also doing its part to boost sales of electric vehicles and reduce vehicle emissions by introducing the FAME II (Faster Adoption and Manufacture of Electric Vehicles in India) program. This was done in order to extend support to the right models amid a gradual increase in the number of two-wheelers in the EV space.

Revised FAME II grant

When introduced in 2019 by the Ministry of Heavy Industry (MHI), this policy offered benefits to models that met the eligibility criteria such as a minimum range of 80 km and a minimum top speed of 40 km / h. This scheme offered the advantages of a subsidy amounting to Rs 10,000 per kWh. Now the government has announced a 50 percent subsidy increase which now stands at Rs 15,000 per kWh for all electric vehicles (EVs) and hybrids except buses.

Additionally, MHI has now capped incentives for electric two-wheelers at 40 percent of vehicle cost from the old cap of 20 percent. From now on, the revised policy will apply to electric two-wheelers.

Bajaj Chetak price increase
Bajaj Chetak

Any other changes to the program will be published in the coming days. Given the central government’s intention to make India an electric vehicle nation by 2030 by helping the adoption of electric vehicles, the latest revisions could be extended to the passenger vehicle segment as well.

Ather 450X, 450 Plus price reduction

The increase in the subsidy was immediately reflected in the prices of electric scooters. Ather Energy was the first to follow up on this initiative by reducing the prices of its first 450X offer to Rs 14,500 as a result of this amendment. For Bangalore, Ather 450X now costs Rs 1.44 lakh and Ather Plus now costs Rs 1.25 lakh. All prices are ex-sh.

Calling it a phenomenal move, Tarun Mehta, CEO and co-founder of Ather Energy, added, “Sales of electric two-wheelers have increased despite the pandemic and with this additional subsidy we expect sales of electric two-wheelers are disrupting the market. , and register more than 6 million units by 2025.

MHI has also notified its intention to use aggregation through Energy Efficiency Services Limited (EESL) in order to bring the cost of electric 3-wheelers to the same level as that of IC-powered 3-wheelers. EESL would classify the demand for 3-wheel electric 3 lakhs into several user segments. To date, 76,008 vehicles have been sold under the FAME II program.


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