EV Scooter Subsidy to Reduce: FAME-II, Subsidy for Different States

EV Scooters are gaining massive popularity as more & more people are moving towards electric vehicles.

Sales of EV Scooters in India doubled by 2.5 times in 2022 as compared to the previous year 2021. India is one of the fastest-growing markets for EVs and to promote the same, the government of India had launched FAME Scheme. So far, customers could get an incentive subsidy on buying an EV Scooter of Rs.15,000 (per kWh) up to 40% of the vehicle’s cost. The same is now reduced to Rs.10,000 (per kWh). Note that the subsidy rates differ from state to state.

Find below the complete details of the EV Scooter Subsidy being reduced, the FAME-II Scheme, & the subsidy rates on EV Scooters in different states.

Major EV Scooter Companies in India like OLA Electric, Okinawa, Hero Electric, etc sold tens of thousands of units in 2022. Ola Electric had over 20,000+ units registered in the April month, of 2023 as per a report.

The government of India in an effort to promote the sale of EV Vehicles, has launched several schemes. One of such EV Scooter incentive scheme is the FAME Scheme which was first launched in 2015 and ended its first phase in April 2019.

Now, the second phase of the (Faster Adoption & Manufacture of Electric and Hybrid Vehicles) FAME Scheme is currently ongoing and will end by 31st March 2024 as per a recent report.

EV Scooter subsidy is soon going to be reduced from Rs.15,000 (per kWh) to Rs.10,000 (per kWh). The government has reduced the FAME-II subsidy and the new subsidy rate on EV Scooters will come into effect from June 1, 2023. Applicable on EVs registered on or after 1st June 2024.

Surging EV prices, supply chain crunch, and the reduction in EV Scooter subsidy rates are likely to impact the EV Segment in India.

What are your thoughts on the EV Scooter Subsidy rates fall? How much subsidy on EVs do you get in your state?

Be sure to also check out these insightful and interesting threads created by our fellow dimers of the Desidime community.

• Tax exemption on electric scooter purchase? Is it possible?

• Electric Vehicle Purchase Guidance

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