Indian Economy News

A total of 7,34,760 E-2 Wheelers registered for FY23-24 as of February 6, 2024

The Government has adjusted the subsidy for e-2Ws under the FAME India Scheme Phase-II, reducing it from 40% to 15% of the ex-factory price. This decision, made after stakeholder consultations with e-2W OEMs on May 16, 2023, and subsequent approval by the Project Implementation and Sanctioning Committee (PISC), is aimed at adapting to the growing EV market.

According to the Ministry of Road Transport and Highways, there is no observed slowdown in the sale of electric two-wheelers following the subsidy reduction. The State and month-wise details of e-2W sales/registrations for the financial years 2022-23 and 2023-24 (as of February 6, 2024) are provided in the attached ANNEXURE.

Notably, Phase II of the FAME-India Scheme does not offer incentives directly to electric vehicle manufacturers. Instead, consumers receive incentives through a reduced upfront purchase price for hybrid and electric vehicles, which the Government of India later reimburses to the OEMs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.