Surge in Electric Two Wheeler Sales Despite Cut in FAME Subsidy

Despite reduction in FAME subsidies, there is an increase in electric two-wheelers (e-2Ws) sales in India in the current financial year. As per the Ministry of Heavy Industries, 734,760 e-2Ws units have been sold in the financial year 2023-24 up to February 6, 2024, compared to 728,271 units in the previous financial year 2022-23. The government's initiatives like Production Linked Incentive (PLI) schemes, aim to encourage the adoption of electric vehicles (EVs) and support the transition to a greener economy. Minister Krishan Pal Gurjar highlighted these efforts during a parliamentary session.

EV sales have remained high despite reduction in subsidy from 40% to 15% of the ex-factory price under the FAME India Scheme Phase-II. After consultations with e-2W Original Equipment Manufacturers (OEMs) on May 16, 2023, the adjustment in subsidy was announced and approved by the Project Implementation and Sanctioning Committee (PISC). The aim of this reduction in subsidy is to reflect the growing penetration of the EV market in India.