Electric two-wheeler makers on Saturday termed as “a phenomenal move” by the Government to increase subsidy for such vehicles by 50 per cent under the FAME II scheme saying it would be a game changer in the adoption of eco-friendly vehicles.

  The Government on Friday made a partial modification of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II), including increasing the demand incentive for electric two-wheelers to Rs 15,000 per KWh from the earlier uniform subsidy of Rs 10,000 per KWh for all EVs, including plug in hybrids and strong hybrids except buses.

In the latest modification, the department of heavy industries also capped incentives for electric two-wheelers at 40 per cent of the cost of vehicles, up from 20 per cent earlier.

  “The revision in the FAME (II) policy, increasing the subsidy by 50 per cent per KWh is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two wheeler sales to disrupt the market, and clock 6 million-plus units by 2025,” Ather Energy CEO and Co-founder Tarun Mehta said in a statement.The Government’s continued support to drive adoption of EVs, with a keen focus on locally built electric two-wheelers will make India the manufacturing hub of EVs, he added.

 Welcoming the “government’s continued support to EVs”, TVS Motor Company Joint Managing Director Sudarshan Venu said, “Sustainable mobility solutions are very important for the future and TVS is investing significantly behind this. The improved incentives for electric two wheelers will increase penetration.” He further said,”Such policy direction should lead to indigenous development of future technology.”

 Expressing similar views, Society of Manufacturers of Electric Vehicles (SMEV) Director General Sohinder Gill said, “It’s an important and an admirable decision taken by the government, a move that will bring down the prices of electric two wheelers nearer to the IC (internal combustion engine) vehicles and remove one of the biggest blockade of the high sticker price of electric two-wheelers.”

Elaborating further, he said a ‘city speed electric scooter’ with a range of 100km/charge will now cost less than Rs 60,000 and a high-speed scooter with a range of 80 km will come nearer to the price tag of Rs 1 lakh.