2W EVs get a booster shot

Affordability of electric mobility has always remained a pain point for both the manufacturers and buyers. The recent amendment in the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) announced by the Department of Heavy Industry on June 11th, 2021, is expected to fast-track adoption of electric mobility in the two-wheeler space in the country, and provide much needed impetus, in terms of demand, to the segment.  According to the amendment, the demand incentive for electric two-wheeler makers has been revised to INR 15,000 per KWh from INR 5,000 KWh earlier. Overall, the cap of incentives on e2Ws has been fixed at 40% of the value of vehicle.  While Ather Energy was the first to pass on the benefits to its customers with the price of its 450X slashed by INR 14,500, others such as Okinawa Scooters were quick to follow suit and announced passing on the full benefit of INR 15,000/KWh to their customers. Tarun Mehta, CEO and Co-founder Ather Energy, says, “Sales of electric two wheelers have grown despite the pandemic. With this additional subsidy, we expect electric two-wheeler sales to disrupt the market and clock 6 million+ units by 2025.